Evening journal., 1921-07-14
CUT ALLCOSTS,
SAYS HOOVER
Secretary is Optimistic on
Future of World Com
merce and Industry
SHOULD EXTEND
MORE CREDIT

BOSTON. July IA - Herbert
Hoover, Secretary of Commerce, in
an address before the National shoe
and Leather Exposition and Style
Show, declared himself an optimist
on the trade future of this country,
in both its domestic and foreign
phases
Summarizing his views, he said
that food exports should remain on
a greatly enlarged scale, demand for
raw materials should slowly in
crease toward pre-war volume,
manufacturers should be able 10 hold
special fields OF production and in
cenuity ana that the world credit
situation, 50 far as America is ef-
fected, does not present insurmoun
able obstacles.
He declared that the country has
turned the corner Of business de-
preston. speculation and waste are
disappearing, labor is regaining ef-
fciency and the whole country is
facing the future with fortitude and
confidence
Secretary Hoover said;
"Our whole standard Of living
EI0AAAF utUtMQC uIfOn OuA AAAAE'A -
and our exports are the balance
wheel for our production. Exports
are vital to the stabilisation of our
industries, Of price levels, Of wages
and OF employment We generally
export 20 per cent. OF our wheat, 60
per cent. OF our cotton. rs per cent.
of our copper, not to mention others
Unless we find market for the sur
plus production OF our great indus
tries, we shall continue to keep some
25,000,0oo Of our people in reduced
buying power. We might even drive
them into poverty-during the many
years that would be required to shift
the whole basis Of our internal pro
duction. Nor does a nation become
rich by its exports alone. but by its
trade.
while many Of the causes Of the
present depression lie within our
own borders. yet there may be no
recovery from those hard times for
many years 10 come IL we neglect
our economic relations abroad The
hard times that knock at every cot |
tage door today came from Europe. [
No tariffs, no embarEoes, no navies. /
10 ALulAtE ClAIl HNttI 0NLtnQ uc AAVuA
those invasionS Our sole defense is
the prosperity Of our neighbors and
our own commercial skill The re-
covery Of our foreign trade can
march only IN company with the well
fare and prosperity OF our customers
when we analyze the present for
eign trade situation, we find tre-
mendous shift in economic current
since 1914. There have been great
changes in our own economic situa-
ton We have not only shifted
from a debtor 70 a creditor Nation.
but our capacity for surplus produc-
ton in food and manufactures has
grown enormously during the war
untn we have taken front rank Of tho
worid in foreign trade. During the
last year about one-'half Of our
whole foreign trade was with
Europe, but Of our exports to them
so per cent. we're foodstuflg and raw
material. OF our exports to States
outside Of Europe about rs per cent.
were manufactured goods. Europe
IS a serious competitor in market
ing OF our manufactured goods to
the rest Of the world.
Since the Great War began. the
world outside tho fighting States Of
Europe has gained mighty in con-
Stunning power. Even emitting the
United States 1t has gained some
thing Ike 40 .o0O.0 IN population
During the war the productive ca
pacity OF these States, except pos
sibly japan, had no unusual increase
because Of their isolation through
shortage Of shipping.
zone Of the economic shifts that
affects the whole world profoundly
Is from Russia Russia was one OF
the great food bases of the manu-
featuring countries OF Western Eu-
rope, exchanging food for their fab
ricated products. These manufac-
tured goods In turn we're to some de-
gree produced from our raw ma
terials. Even at best it viii be many
years before Russia will have re.
covered Europe win draw from us 3
great proportion Of food supple.
that she formerly drew from Russia
Another great but uncertain shift
In world forces viii arise out OF Ger
many. The reparation payments mus
have a profound effect upon tn
whole economy Of the world Ger
many is to pay outside her border
10 the Allies 100000, 600. plus p
per cent export duty. or. say, a min
imum OF about $3.50. 100000 per an
mum. Germany Is left without mucl
gold, foreign property, or foreigi
business earnings OF consequence
therefore. these payments must b
made mostly by the sale Of manu-
factured goods outside her borders
But beyond the reparation payments
she must also seel goods abroad Il
the amounts necessary to buy he
imports Of food and raw materials
Any calculation based on the pre-
war trade OF Germany implies Al
enormous increase-perhaps NOR
than doubling-of her pre-war ex
ports In view OF the export duty an