The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-09-02
Hoover Believes L. S. Loans to
Europe Imperative.
Provide Market for e. S. Sur.
plus and Save Continent.
LAYS H. C. |. TO SPECTATORS
European Vharves and Ware
houses Overlooking With Food.
Says Palmer Is Waging Fight
on Right parties"

Paris. Sept. Appearing today
before the sub-com mittee OF the con-
gressional committee on war expendi-
lures. Herbert Hoover, director gem
eraI of interaliied relief, said he be-
lieved it imperative for the United
States to extend TO Europe credits of
from $4,000. 100000 to $4,000, 600, 900
for a year and a half or two years
in order TO provide a market for the
American surplus and save Europe
from disaster. The credits. Mr.. HcCv-
err declared, should be issued to cs-
tabIished European merchants. under
guarantee of their own governments.
and a guarantee in turn should be
given by the United States to the
American merchants in interest.
Speculation Behind Fl. c. L.
Paris Sept. "A distressing era of
speculation in foodst ifs in the United
States and turnout the worlds primary
food markets is largely responsible for
high food costs, in the opinion of Her
bert Hoover. chairman of the inter-
allied relief organization, who, on the
eve of his departure for the United
States, granted the Associated Press
an interview.
Wharves and warehouses in north
ern European ports are overlooking
with foodstuffs principally meats, fats
and dairy products sent by merchants
all over the world, Mr.. Hoover said.
These merchants, he declared. had
! 'gambled" on sale in Poland, Czecho
Slavokia. the Baltic states and Ger
many at high prices, but these states
/ have only a deprecated local currency
and many commodities are in danger
of spelling rs the central European
market for foodstuffs is limited to the
ability of the peoples to buy on credit.
Shortage Not Cause.
This years speculations," Mr..
| Hoover said, "'are due, in my opinion
chiefly to the belief of food merchants
| and manufacturers that when the
| blockade was removed there would be
an enormous demand for foodstuffs
| and other commodities in central and
eastern Europe. This speculation was
not due to any important shortage at
! present of actual supply. This specu-
| lative fever which was not confined to
| foods was greatly stimulated by the
/ long delay In the removal OF the block
AIDE until the peace treaty wAk signed
| at Versailles"
! food speculation could be checked in
America, Mr.. Hoover replied:
Mitchell ON Right Track.
Attorney General A. Mitchell Pal
mer is on the right track when he en-
deavors to break down speculation.
| We are now coming into a flood of
production of foodstuffs in the north
ern hemisphere and will again have
| a great surplus in the United States
If, in the meantime Europe has not
found credits to purchase the coming
winters supplies, we are likely to have
a glVt and prices may fall below the
cost Of production to American farm
F., ers.
The present high prices of food are
not due to oVer-eXports to Europe
from the United States during the past
year"
Mr.. Hoover pointed out that the
problems involved in the speculative
wave were very difficult to deal with
because it was world wide and no
confined to the United States.
Farmers Must Not Suffer.
THE law of supply and demand,
he continued, sis not working normal
ly and probably will not for another
year. While prospective food supple.
for the next twelve months are abou
equal to the apparent need, unstable
political situations, a recurring short
age OF shipping, a shortage of credi
and a combination of either buyers o.
sellers will tend to create great specu
lative waves and may initiate prices L
point uncomfortable to the consumer
OF in the reverse situation, unendur
able to the farmer.
We will have a large surplus mex
year and must have a prosperous
farming community we are to hav
, the world fed in the future and main
/ tain f9hiiifU al bnn7a nd oh