The New York herald., 1920-01-07
Situation Abroad No Cause for
Hysteria Here or There,
He Holds.
DEGREES EFFORTS AT
CREDIT PROPAGANDA
600 Per Cent Increase in Taxes
Enough for America, He Says
Ordinary Finances Ample.

Herbert Hoover, on his way East In
connection with relief work In Europe
yesterday telegraphed to his headquarters
in this city statement in which he took
emphatic exception to opinions of Euro
pean propagandists" both concerning the
volume Of Europe's financial needs from
the United States and the contention that
the great bulk of these needs cannot be
met by ordinary commercial credits He
said there is no ground for hysteria on
|either side Of the Atlantic. His statement
|says:--srs-~-
IT disagree ernphatically with tho state
ment being circulated by European propa-
gandists both as to the volume Of Euro
pean financial needs from the United
States and as to their suggestions that
the great bulk Of these needs cannot be
met by ordinary commercial credits and
that, therefore, our Treasury needs to be
further drawn upon for new loans.
aside from some secondary measures
by our government. the problem is one
of ratification of peace and ordinary busl-
ness processes. and not one of increasing
our burden of taxation. Our taxes are
now COO per cent over pre-war rates. We
simply cannot increase this burden
Rather the problem is one OF early re-
ductjon.
cities Need Bresdstuffs.
'By secondary measures I mean that
some dozen cities In Central and Southern
Europe need breadstuffs on credit from
the Grain Corporation to prevent actual
starvation. and that the Allies are asking
for temporary delay in paying interest or
our government loans to them. The Allies
cannot pay this year in any event The
actual situation varies with every country
in Europe. and generaIties are notfwortf
printpa per. The European neutral coun-
tries have made money from the war and
have asked no favors and given none.
"Outside OF interest to the Allies. Great
Britain states that they want nothing but
commercial credits. These she can always
obtain II she puts up her ample collateral
assets in South America. China, &c
France also has unpledged foreign assets
that would cover most of her important
needs.
"It would also appear that the 10000
600 people of prosperous nations who
have not suffered in the war should also
aid in European relief. The American
people are now finding seven millions OF
dollars a month In charity for feeding
three millions of children and fighting
disease. II We contribute bread supply
on government credit to these starving
cities, plus business credits, we will be
doing our share Of world responsibility.
"If we do undertake the solution Of the
bread question by our government our ac-
ton will benefit and protect the other
nations of Europe from infection Of
anarchy and chaos Poland is the sole
shield of Europe from Bolshevik in.
vasion. IL we extend this help 1t should
be upon consideration that the stronger
nations In Europe will do their part ir
many directions. Many people Of Europe
are not at work. For instance. their Goa
production Is less than seventy per cent
and their economic Generalization Is ir
a great degree due to this alone. Only
they can remedy IL.
Large whent supply.
Our government has large surplus oi
wheat flour, acquired by IL under the
wheat guarantee. In the ordinary course
we should hold 1t for cash from foreign
nations We could solve the bread stu
alton in the dozen critical centres In
Europe II the Grain Corporation were in
sell about fifteen per cent OF our surplus
wheat and flour on credit to meet these
acute situations. The difference between
these credits and cash Is the difference
between starvation and existence to them
These plans require no new appropri-
ations from our treasury and no addi-
tional taxes on our people, but they do
require an understanding In Europe that
this country Is nearing the time when Il
must cease to carry the economic burden
OF Europe except through charity and
ordinary business processes set up under
proper security.
THE position OF Italy is difficult. but
with demobilization OF her army and her
navy her needs would be less. So far as
/ know. no one Is threatening her with
war IL Is possible that some OF her
larger cities may need breadstuff assist.
ance beyond the ability OF commercial
credits Germany could pay or secure
commercial credits II the reparation COM
Continued on Page Four, Col. Three)
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