New-York tribune., 1920-12-13
Wants Credit Machinery
in y. S. to Provide Ma
tons Abroad Material
: to Resume Production
Would Aid Russian
And German Trade
Favors Stopping Issue of
Foreign Paper Money;
League Also Discussed
From q StcT Correspondent


MARION, Ohio, Dec. 12.-Four mr.
rent steps needed for the economic,
political and financial reconstruction
Of the world were outlined to-day to
president-elec Harding by Herbert
Hoover. Mr.. Hoover declared it was
his belief that it was necessary for
the welfare of America, as we'll as Of
Europe, that credit machinery be set
40 through which raw material might
be provided the European nations
pending their recuperation. Germany,
he said, must be brought back to pro-
duction and this could be done only
through settlement of the terms Of
German indemnity.
"If Germany does not produce" Mr..
Hoover added, there can be no solu-
ton OF the European problem. Ger
nany's men and women will not work
unless they know what they must pay"
The Russian people, he added, also
must be brought into production and
put into position where they could both
buy and sell in the world marts.
The last step outlined by Mr.. Hoover
vas immediate curtailn1ent of the is
sue of paper money by European coun-
tries. "They have ceased merely to
print IT," he said. "Now they are pub
fishing it."
s"We ran the gamut Of the problems
that now are facing the world" Mr..
Hoover said in speaking of his inter
view with Senator Harding. Naturally
we discussed the League Of Nations. but
without reaching any definite conclu
sions. In that connection it is my be-
lief that we should lay the foundation
of our future policy on what has a.
ready been done, that is on the Treaty
Of Versailles and the League of Ma
tons. | am equally convinced that. the
lesgue must be very materially Changed.
.Tf slcu'i ut re -, $4,000 discus
sions already closed by documents al
ready executed
ss~Mr. Hoover declared that he was un
,Ahl to say to what extent changes in
the League OF Nations covenant would
be accertable to other governments.
Would Lend to Consumer
Econ mic -roblems affecting America
sad Europe formed large part of his
dis .oA WITH senator Harding, he
said. Short term credits to farmers in
America was not the solution of the
situation now facing the farmer. he
asserted. eve should lend money to
the consumer, not to the grower. 1t
VIII not rectify prices to give money to
the grower SO that he can hold his
e-ons. but if we increase the buying
power OF the consumer, prices will re-
adjust themselves without other aid"
europe, he said, could not pay for
american products in goods, for the
lca is such that she cannot absorb the
necessary amount Of European goods
without closing her own factories and
discriminating against her own prod
ucts. He added that we had carried
me food burden Of Europe to the ex-
vent Of SIT 000,000,000 a year during
Ee "ar, as compared TO between s3,
W00OO 900 and $1,000 00O,00 in normal
umss, and that since this debt could
ses be discharged in goods it must be
ueenarged in money.
The credits which we had advanced to
nance this movement of food, he said,
soW coming due. He asserted that Eu-
::ope could not both pay and continue to
guy and that her markets were, there
!ore, closed to US and our export trade
was at standstiil.
The remedy, he reiterated, lay in the
rehabilitation of Europe, and he rec
emmended that American capital be in
vested largely and permanently in Eu-
npean enterprises. especially in unde-
seloped fields. =.
II we are going TO maintain the pro-
ssu.scs'vity of the United States" he said,
mere has got to be a readjustment
sno we have got to put our excess capi-
= a. INTO industries abroad. To enter
shis foreign field successfully there must
os defined government policy for the
projection OF American individuals and
interests abroad"
LABOR questions, said Mr.. Hoover, had
SSssa discussed at the conference with
ctsnstor Harding only in the aspect Of
~. relationship between organized la
oos, the Industrial engineers Of the
ooah'ry and the employers. He had
y.seented his conclusions, gained from
.nsse elements Of industry, no said, in
~ sl eHort 70 find some medium outside
'ts government by wnlcn labor diff