The citizen. [volume] (Berea, Ky.) 1899-1958, 1920-01-01
ER|CANS MAY
FINANCE EUROPE
Plan to Have Interest on U. S.
Loans Feed Hungry.
HELP FOR STARVING URGED
Congress to Scan Scheme for Further
Extensions Of Credit by the United
ststes--To Seek Hoover's
Views on Subject.

Washington, bee. 26-Further ex-
tensions Of credit by the United States
to suffering Europe aggregating ST.
SOO.OOOOO0 will be considered by con-
gress as soon as II reassembles next
month.
II Is proposed TO finance relief Of
starving central Europe at an expense
Of S3OO.OO0.0O0 and to fund into time
loans the 81, 500.oOO.OOO interest due in
the next three years on loans to the
allies.
In connection with the question Of
conditions In central Europe the views
OF Herbert Hoover will be sought Mr.
Hoover Is Of the opinion that unless
America comes 10 the rescue thou
sands Of people will die of starvation
this winter In Austria. Hungary. Po-
land and Bohemia. Senator Lenroot
has suggested that Mr. Hoover he
called before the foreign relations
committee Of the senate to present his
suggestions
Hoover Calls Treaty Harsh.
sorting that the peace treaty deals too
harshly with Germany because II per
mits Germany little chance Of rebuild
ing Itself. The allied exactions 'of
Germany are so stupendous. he said.
that II will he a longtime before the
Jeutons Will be prosperous again. He
opposed American relief work In Ger
many on the ground that relief funds
poured into Germany by the United
States would be dipped out by new
demands OF the allies.
Mr.. Hoover is also quoted as oppos-
ing the assumption by the United
States of mandate for Armenia He
pictured Armenia as a poorhouse sur
rounded by solvent banks. He re-
ferred to the contiguous cotton fields
OF Mesopotamla, the copper mines of
Syria and the oil fields OF the Black
sea coast. all Of which have been an
nexed by Great Britain and France.
In regard to the relief Of starving
central Europe Mr.. Hoover proposed
that the funds Of the grain copora-
tion, aggregating with accrued profits
S25OOOO.O0O. be utilized. He would
have this fund advanced as a nominal
extension of credit for the purchase
of food for Austria, Hungary. Poland.
and Czecho- Slovakia. n would be i'm
possible to exact security for such adj.
vances. however. and the loan would
be regarded as q charity which the
United States is called upon to extend
from its plenitude to suffering human
lty.
The secretary of the treasury will
proceed TO fund into time obligations
the interest due on loans to the allies
unless congress decides he lacks the
power without further legislation.
Glass Asks for Opinion.
Secretary Glass has asked the ways
and means committee of the house TO
decide the question. in letter in
which he says:
"lf the treasury demands an imme-
date cash payment of interest before
the industry and trade of Europe has
an opportunity to revive we should not
only make Il impossible for Europe to
continue needed purchases here and
decrease their ultimate capacity to pay
their debt to us. but should hinder
rather than help the reconstruction
which the world should hasten.
"A nation can lIquldate rs foreign
debts onl by the accumulation of for
0gi credits which may be accom-
plished through an excess ,rade bal
arce, invisible exchange tens. the
creation Of credit loans or by the
EXPORT CT gold.
Until our associates In the war
awe had IN opportunity To resume
normal industry and commercial ac-
tivitles they will not have the exports
with which TO pay the interest due on
our obligations and could make such
payments only by shipment Of gold
or by obtaining dollar loans IN the
United States.
"While ! fully realize the desira.
bility of collecting this interest, I
should be most reluctant without spe-
cific Instructions from congress TO the
contrary, TO demand the immediate
payment of interest by those countries
which would destroy their power TO
make needed purchases In our mar
kets."