New-York tribune., 1920-01-13
Hoover Advises
That U. S. Quit
Feeding Europe
Suggestion Is Made After
$i5O,0OO, 900 Asked bv
Secretary Glass for Pur-
pose Had Been Granted
Austria's Cranaries Lost
Nation Doomed To Be Per-
petual Poorllol.se. With
Producing Areas Taken
Ncw York Tribune
WGShsHutOf. Bureo,f

WASHINGTON, Jan. 12.-After the
Sloo'ooo,OOo requested by Secretary
Glass Of the Treasury had been grant
ed' Herbert Hoover told the House
ways and Means Committee to-day
the United States should cease to ex
tend charity to suffering Europe.
THE Austrian situation" said M
hoover, "is the worst in all Europe.
The need for food has become 40 des.
perate that she has offered the famons
works of art in her National Galleries
as security, but personally l am op-
posed to accepting them. ! feel Ger
tam that the United States would not
become Il pawnbroke- Austria has no
coal and cannot obtain grain in anv
considerable quantity because of the
deprecated value Of her currency.
ihe political situation in Austria l
hesltate to discuss, but it is the cause
OF the trouble. Austria has now no
nope of being anything more than a
lands that produce food have been
taken from her. This, 7 will say, was
done without American inspiration
Security for Loan Demanded
If this political situation continues
n.
dicant, the United States should not
provide the charity. We should make
the loan suggested with full notice
that those who undertake to continue
Austria's present status must paw the
bill. '' '''~
Present Austria faces three alter
natives--death, migration or com
plete Industrial diversion and rsorgarl-
lzatlon. Her economic rehabilitation
seems impossible arHr the way she
was BROKEN up at the peace confer
e ence. Her present territory will pro-
duce only enough food for three
months, and she now has no factories 3
which might produce products to be
exchanged for food"
Speaking Of conditions generally in
Europe, Mr.. Hoover said there is prog
ress toward reconstruction, and eX-
pressed the view that that work would
be hindered instead of advanced by msre
loans from the United States. He said
during the war this country lent about
$4,000, 100000 to give Europe food, and
that all but possibly $12.O00.OOO Of
this, which was used to feed under
nourished children, will be repaid.
Aid for Poland, because reconstruction
has been delayed by war against the
Russian Bolsheviki, was urged by MT
Hoover.
Poles Protecting Europe
The Poles are doing remarkably
well, although they have 100000 men
miles" said Mr.. Hoover. "If this front
should collapse the whole financial
structure of Europe would be shaken
Armenia must receive aid until it
is determined what nation will have
a mandatory over her. The peace con-
ference has agreed that the nation that
accepts this must assume the debts
resulting from the food the United
States has sent
Speaking of the general situation Mr..
Hoover said:
rapidly improving and the general in
dustrial outlook is favorable. French
and Italian prospects are not quite so
good, and Italy may need some bread
stuffs before the next harvest. Belgium
has made IL wonderful recovery. She is
financing food imports Of $20000.000
month without direct assistance Ger
many can care FOR herself with a little
assistance from the reparations COM
mission. In Bulgaria. Serbia, Rumanis,
South Russia and Turkey some surplus
of food exists. The fact that twenty
new states with no experience in gov
treaty has, OF course. delayed recon
struction work"
Transfer of Credit Preferred
Mr.. Hoover said organizations inter
ested in relief in Europe are attempt
ing to work out system by which
there need be no actual transfer Of
money on European soil to those per-
sons Americans are trying to aid, but
safeguarded transfer to a proper in
stitution here would result in a food
credit in Europe. He suggested that
in the past there have been enormous
frauds IN connection with remittances
to Europe, perpetrated largely by tin
Grant dealers in exchange. Frauds have
been committed also, he said. by con-
Germs selling food packages here for
European delivery. "The best OF tn ese,"
he told the committee, "we have found
TO contain about 81 worth of food. and
they were sold for S27."
Neither Great Britain nor any other
European nation. Mr.. Hoover told the