The Washington herald., 1920-01-13
One More European
Loan Vital, Hoover
Tells House Members
ooNrINuED FnoM PAGE ONE.

be asserted. will be recovered within
from one to three years,
Except for a comparatively small
area, Mr. Hoover stated, Europe will
be able to feed herself this year. He
expressed HIMSELF as being opposed
to the United States paying the OBJ
legations incurred by European ma
tons as q result of political condi-
tons. 'If any countries over there
want to maintain such conditions they
should pay for them" Mr.. Hoover
told the committee.
Chance to Cool on.
That the extending Of aid to the
stricken nations of Europe at this
time will give the world a little
chance to cool or" was the way Mr.
Hoover put the matter.
Referring particularly to the eco
nomic condition Of Austria, the for
mer Food Administrators said the
terms of the Supreme Council at Paris
virtually had made Austria a per-
petual beggar.
IL politi1al conditions in Austria
are to NAE her the mendicant Of
Europe, and some one has to support
these conditions, it should not be the
United States. If we do pay this
time, it should be made clear that it
is the last time
Recurring to the Austrian situation.
which he said is the worst Of all
| Europe" Mr.. Hoover said:
THE need for food has become SO
desperate that she has offered the
famous art works in the national art
gallaries as security; but / am OPP
posed to accepting them. / feel GER
tain the United States would not de-
mand such form of pawnbroking.
Money Is Useless.
| Mr.. Hoover said that from 5000 900
TO 100000 in private charity is fiow-
ing to Europe from the United States
each month. Financial remittances.
however. are the height of folly" he
said. Money will not buy food where
there Is none"
Enormous frauds are being per-
I petrated on persons in this country
who send money or food to relatives
IN Europe. the committee was told.
Itinerant dealers in foreign exchange,
according to Mr.. Hoover, take adj
vantage Of the average persons
ignorance of exchange rates.
In the sending of food also, he
said, large numbers OF Americans
with relatives abroad have been swim
died. A score or more firms spe-
cialize in food packages which they
promise to deliver to the consignees
in Europe.
THE best of these packages we
have found" said Mr. Hoover. con
tanned about 81 worth of food and the
seller Is charged $37 for it,
To Handle Food Like Money.
To meet this condition, Mr.. Hoover
announced, there will be launched
within a week a plan for food drafts.
| Under this plan, a person desiring to
send food to a relative in Europe will
pay his money over the counter of
any bank in the country for a draft
which will be good for whatever food
II specifies when presented in any city
in the stricken countries.
From the signing of the armistice
until July /, the provisioning of Eu-
rope cost s., 800 on. CO., said Mr..
| Hoover. That was n burden on
our government and the taxpayers
in one form and another. The United
States Treasury advanced $500. $4,000
to feed Europa But this year Eu-
rope will be able Ato feed itself by
the exchange Of goods. and credits
of s15O.oco.ooo to szoolooOcoo from the
United States
practically all the money loaned is
He stated that feeding Armenia
would be largely a work of charity.
but expressed the belief that with
| strong mandatory directing the
destinies OF these starving people.
the credits extended for purchase of
| food for the Armenian refugees
would be protected. 1t Is costing
81, 10000 per month to feed the Ar
menians. Mr.. Hoover stated.
| Poland Jared worst.
most appealing situation in Eu-
rope" She has had no outlet to
the sea, pointed out Mr.. Hoover.
and being unable to establish a
system of exports. she could not
make the economic recovery that
other nations are making.
| Finland. the committee was told,
needs help in re-establishing her
Suc
with Rolshevik Russia. formerly
the nation with which she had
the greatestJexchange of materials.
The situation is hopeful in Czecho-
Slovakia- Rumania, Greater Serbia
and Bulgaria now have grain for
export. Germany. with proper CO.
operation from the Reparation
Commission, can take care of her
self. Hungary faces a bad situa-
ton. although within a radius of
eighty miles from three nations
having a surplus of food. Bel
gium now is taking care of her
self. but will probaly need help
to struggle through the winter.
Grain Corporation ut Head.
Mr.. Hoover told the committee he
deemed II advisable that the Grain
Corporation be designated as the
chief agency for extending the aid
contemplated. pointing out that it
would only be necessary to broaden
the powers Of the existing organiza-
| ton.
Under the plan submitted BY Sec
rotary Glass. and Endorsed by Mr..
Hoover; the loans would be advanced
by the Grain Corporation out of the
billion-dollar wheat guaranty fund,
and would be used to establish cred
its in this country.
The best securities available would
be obtained from the borrowing
countries.
4 Shower Baths for Mules.
A coal company at BIRMINGHAM,