The New York herald., 1921-10-07

the position of our foreign trade" The
greatest obstruction to its recovery, he
said, Is the destructive effects of violent
fiuctua tions In foreign exchange. 1T Is
certain" said he, that until we can
secure some measure OF stability from
month to month there is little hope OF
our foreign trade or that of any other
country recovering to normal
There can be no hope OF stability
IN any of the worlds exchanges so long
as imitation continues in so considerable
a part OF the world. I am perfectly well
aware that we should not interest our
selves as a Government in stabilizing
the budgets and establishing sound cur
rencies In foreign countries. but unless
our commercial community is willing In
some way to interest itself In the coun-
'ries struggling with fiscal and financial
problems we must expect to pay many
thousand fold in the loss of export mar
i.ts and in the employment OF our pco-
rie.
'If we survey the situation or the
continent of Europe in these aspects the
first problem that confronts us Is the
situation In Germany. The solution of
this question rests solely on the wisdom
OF reparation adjustment. 1t should not
re beyond the intelligence of the human
race to secure such a solution Of this
II after as would result in some stabili-
zation of the German mark"
Would Encourage Capital.
It was at this point Secretary Hoover
suggested the course already quoted.
Amplifying his idea OF cooperative ac-
ton by the great banks OF issue, the
speaker continued:
Their guidance and supervision might
encourage not only local capital but
such private foreign capital as might be
recessary to currency rehabilitation In
each case. And through such action
there might be guidance In fiscal pol
,cles In some OF those countries that are
the very premise Of stability. This Is
rcarer in the realm OF possibility to-day
than It would have been year ago.
fCr gradually nearly every one of these
countries is making toward a possible
balance of exports and imports.
II am not one OF those who see Amer
lean foreign trade disappearing from the
earth. Great exports, of which we are
the final supply, and those products Of
our ingenuity and mass production will
always be ours. but II we would employ
all our people we must hold other areas
than this"
From this point Mr.. Hoover naturally
progressed to the problem of unemploy-
ment. 1.-THE volume of this. the most
distressing of the faults In our economic
life," he said "is decreasing"
Commenting upon the work Of the
Unemployment Conference In Washing
ton. he said:
There has been a great response to
the recommendations sent out lasf Sat-
urday morning and the appeal of the
President that these recommendations
- kroa Of Int
action"
Government Only a Guardian"
The Secretary continued:
THE query .omes up in the uncmploy-
nent ocnfer srce every minute OF the
day: What will restore business to
normal. Wha. will bring back employ
ment?
II could review many recommenda-
tions. and s,urng them I could repeat
the homilies on the primary virtues.
could repeat lie list of Congressional
measures or international policies that
would help. But when all this Is said
and done these things but touch the
fringe of this great commercial fabric
a fabric woven with woof Of American
individualism end the warp Of American
resources. a fabric stained In places by
selfishness but get woven with the last
ing pattern of n gh character, great SER
vice and high courage. Our Government
Is not the wcaver of this fabric, 1t is
only the guardian. II Is from the great
qualities of out people that our recovery
| will come. aud with the effort Of each
and every one OF US II would come
quickly"
Myron w. hobinson. newly elected
president of the association. presided
over the dinner. which was attended by
600 members and friends. The other
speakers were Senator Walter f. Edge
of New Jersey, j. Herbert Case. senior
deputy governor of the Federal Reserve
Bank of New York. and John Barrett
formerly director Of the Pan-American
Union.