Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-07-13
Hoover Urges Need
of Ieniency to
Foreign Creditors

Foreign Creditors
Boston. July 12-The country has
turned the corner of industrial de-
preston but to prevent delay in its
recovery from hard times must not
neglect economic relations abrpad.
Herbert Hoover. secretary of COM
merce, said here today. He was ad-
dressing the National Shoe & Leath-
er Exposition and Style Show.
The recovery of our foreign trade
can march only in company with
the welfare and prosperity of our
customers" he said.
IF we would maintain our eco
\nomic position We must continue to
give credits to buyers of our goods
and if we should demand interest or
principal on our established loans
credits If today we stop giving
more credits and demand payment
OF interest on debts due our govern
ment, our exports will further de-
cline and the decline will find its
Interpretation in more unemployment
among our own people and more
displacement of our industrieA"
SECRETARY Hoover expressed conf
dence that our debtors eventually
could carry the debts due us with
ease. provided they have the time
necessary for the healing of their
economic wounds, that they succeed
in the reorganization of their fiscal
policies so as to balance their gov
eminent expenditure, and above all
that they secure disarmament aid
continued peace. Our problem is the
difficulties Of our debtors during the
few years until these blessings are
attained"
Any improvement in European pro-
ducticn Of manufactured goods. he
said. would affect favorably our mar
ket for those raw materials such as
cotton and copper. which he said he
was confident would gradually return
TO pre-war conditions of demand. Re-
ferring to Europes improved ability
IN competitive manufactured goods, he
said their production costs were bound
to be low, in some cases artificially SO
through government subsidies, but he
thought the United States position
secure in exports which were the re-
suit of repetitive production, and in
special manufactures based on the in
ventive genius and skill of our peo-
pie. The industry of shoes and shoe
findings was cited as typical of this
AS to our manufactures contain
ing large element of labor cost"
Secretary Hoover continued, I'VE must
look out and take measures of our
own.
we can no dc ubt devise tari9 meas
ures that will protect our domestic
market. But if we are to hold To our
foreign markets in this vast group of
our manufactures and thus to keep
our people employed. we have several
things TO attend to. Fundamentally,
We must get our production costs
down. That lies only along the road
Of increased efficiency in our whole in
dustrial machine. 1t means a willing
ness of our working people to put
forth every effort that is in them con-
slstent with health. proper family life
and good citizenship. The surest road
to continued | Ugh wage, and the sur
est safeguard against unemploy ment
is to remove every restriction on Of
fort.
This must extend from out mines
10 the railways, TO the factories, tC
the wharf, and to the ship. 1t means
smaller margins Of profit. 1t means
that ultimately we must have mucE
lower transportation rates. 1t means
we must have bee norganized mar
ketins machinery abroad under
Americans themselves. 1t means the
establishment of adequate short time
credit machinery and much more care
in foreign credit risks than our mer-
chants have shown in the last Il
months. 1t means eliminating of the
great wastes in industry. For in
stance, in the Atlantic seaboard area
alone, by the development Of these
great water powers and through eco.
Monies by identification generally
we could profitably save 10000, O0C
tons OF coal per annum if we had tho
courage to 90 at it.
1t means that the government,
must remove as quickly as possible
those unnecessary domestic burdens
upon commerce to which the govern
ment is party, by the reorga nizati
of our tax system, TIE settlement o.
the tariff question, the reduction il
government expenditure through the
reorganization of the federal govern.
ment, through reduction of armament
and through reduction Of shppins
board losses. and by the settlement
by the government of the OUTSTANDING
claims Of our RAILWAYS.
1t means we must cease trying Il
drive American shipowners off tn,
sea with tax paid shipping losses
We must carefully determine wha
particular trade routes we will main.
tain in development of our commerce,
over d period of years. and let ouI
merchants know them. 1t mean,
the government must provide such
information to commerce and in.
dustry from both at home and a.
broad as will enlarge its judgme nt
It means we must extend scientifi,
research into the problems of waste
the perfection of processes. the sim
plifcation of methods that are be.
You'd the ability OF one nlanufactur.
er acting alone. and we must co
operate with industry to perfec
these things. | am confident We cai
hold our markets. our higher stand.
ards Of living and OF wage if we will
all put our backs into IT.