New-York tribune., 1921-06-26
Hoover Plans
Credit Pool to
Save Farmers
ahiects 10 SlOO, 900, 900
Farm Export Plan; Wants
Banks To Put Up Capital
70 Carry the SURPRISES
says Europe Can Pay
n,elares Object of Bill for
Funding War Loans Is
To Get Them i'm Shape

wasHINGToN. June 25.-while ex-
..;nv disapprovai of the Norris bill
.reate a Sloo.Oe0,oo0 corporation to
!, !, farm exports, Secretary Hoover
IS Senate committee to-day that
i. Administration recognized the
..,;n,,s economic plight of American
srssrs and was engaged in 'Smobiliz-
!. rr;yate banking credits to prevent
= forced liquidation" of farm COM
-os;ties. particularly cotton and sugar.
sIet us first attempt" he said, "to
,,.vens forced liquidation of these COM
wss;t;es by mcbilizing private capital,
: sss bsen done already in the cattle
.sustry, and then II we fail there Will
= sime enough 10 get the government
= tske up the burden directly"
Pointing out that the United States
IL sent to Europe "a billion dollars
rarth of foodstuff in the last eleven
.onths.n Mr.. Hoover said it "was evi-
sort that the governments and peoples
sbere find money for foods" but con-
ssded that the situation as to cotton
vas worse, "because they tend to re-
aacs their normal requirements of tex
tiles"
Securities Not Best
sone wishes TO make many mental
rse.vations upon the possible recuper-
zion in Europe" Mr.. Hoover said in the
eourse Of a general discussion of the
economic situation overseas, "but the
,eurities possible to obtain cannot be
,Isssed as Al"
Chairman Norris referred to the Ad-
uinistration bill which Congress has
been ssked to pass empowering general
,ssps to fand all of the war debts
saich the United States holds.
#The object of that bill is to get
sass loans in some sort of shape for
handling" Mr.. Hoover said, and when
messed for & statement as to whether
lie Treasury intended to permit ex-
change Of German reparations securi-
ass, he said:
well il is quite possible that the
treasury could get better securities by
S,hanging some of the securities Of
asw nations for German bonds"
England owes $4,000, 100000 Sena-
sr Norris said. "Do you mean to say
We would be asked to take German
bonds against this debt and that they
would be better 2"
Me- Mr.. Hoover responded. ''I
aid exchanges might be made which
Roald give US better security. No one
proposes that the United States should
exchange good securities for less good,
% Jar as I know"
European Food Restrictions
While $4,000, coo Europeans still s.re
ander food restraint, rationing or
similar system" Mr.. Hoover said, Po-
and Austria and "in a minor degree,
Gtecho-Slovakia" were the only coun-
tries where a diminished food supply
might result from failure of credits.
European harvests, generally good. he
Isaid, might be sufficient to meet their
netds, but that in any case 10000, 600
bushels OF wheat was all that would
be involved. He added that Europe
found the money somehow to cake q
Sl,d00a00,000 in food from the United
States IN the last eleven and half
asnths'
As to cotton, however, the problem
df disposing of our surplus is much
more serious" Mr.. Hoover continued,
'hecause experience has demonstrated
tnat the governments and the peoples
vii secure their food but that they
VII cut in textiles.
There is marked tendency in