Evening star., 1921-07-24

Herbert Hoover. Secretary OF Com
merce and Of wide world experience.
says. that wise solution Of the credit
problem resulting from tremendous ex-
pansion Of production power and our
sudden.born creditor position will in
sure the continued flow Of United States
commerce.
Those who seek the solution, he eau
tions, must keep always before their
minds eyes the real picture, Of what
distinguishes this country from all
others.
1--WE are not nation of machines,
and houses. factories and railways" he
Ays, I'VE are q nation Of men. women
and children. Our industrial system and
our commerce are simply Instruments
for their comfort and happiness; When
business and economies We must be In.
spired by the knowledge that. we are
increasing and defending the standards
OF living OF all our people. Upon this
soil grew those moral and intellectual
forces that made our nation great
-
So. under the Hoover administration,
the problem Of world trade is to be
humanized and the solution figured on
the greatest happiness OF the people
rather than In millions upon the credit
side Of the ledger. And yet sound busi-
ness and economic principles are being
employed in seeking the solution.
Hoover, who today has the best op-
portunity Of any in this country, II not
In the entire world, to view the real
world trade situation and to estimate
the future Of our foreign commerce.
isenss g xnS
even pessimism. He says confidently
that I'VE have already turned the corner
Of this period Of depression
Emphasizing the Importance Of cult.
waiting foreign trade. Mr.; Hoover points
out that 'unless We find market for
the. surplus production Of our indus
tries we shall continue to keep some
twenty -f1ve millions Of our people In
reduced buying power. We might even
drive them into poverty during the many
the whole i, basis Of our Internal pro-
duction."
Secretary Hoover has a very sane
view Of the credit problem a. key to
trade readjustment. He argues that
attempts to bring exchange to parity
Or to create International securities Of
any kind are open to the objection that
they involve an element Of imitation and
that they practically open the gates Of
credit from the United States without
regard to risk. to how its purpose af-
fects Us. or whether 1t really benefits
the borrower. Loans from our govern
ment direct to foreign governments"
he explains. ''or, to foreign merchants
have 4 hundred objections and disagree
able entanGlements which we learned
well enough during the war. In all
this maze of diniculty and the unsettle-
ment over credit and debts ] would
sum up that wisdom consists In knowing
what to do next rather than in debates
upon perfection.
"As necessary as the continued estab-
lishment Of foreign credits is," Secre-
tary Hoover emphasizes, 'if we are to
maintain our large volume Of export
trade. we should not overestimate the
amount needed for legitimate trade. for
refinance and for reconstruction pur-
poses. The amount Is not SO great as
popularity supposed and will decline an
nually. I believe all trading states OF
consequence in the world can even now
finance their imports Of food supplies.
The stronger OF them can finance their
imports Of raw materials. We are. in