Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-10-17
HOOVER FAvORS
HOLDING EUROPE
To ACCOUNT FOR
DEBTS OWED US.
Reputation of the Loans
Would Undermine Whole
Fabric of International
Good Faith, He Says,
ONLY 5 PER CENT MAY
NEVER BE COLLECTED
American Sacrifices and
Charity Cannot Them
selves Cure Evils From
Which Europe Suffers,

Toledo, O., Oct. l6.--Repudlatlon
of the loans made by the United
States to the allied and associated
nations during the war would uh-
dermine the whole fabric OF inter-
national good faith, Secretary OIL
Commerce Hoover, member OIL
the allied debt commission, de-
clarcd tonight in an address here
He added that he did not believe
any public official, either in the
United States or any other coun-
try could or should approve their
cancellation.
"These loans are in fact. debts
owing to our taxpayers" Mr.. HooV-
er said. "They were made at the
urgent request of the borrowers
and under their solemn assurances
of payment The loans were lndi-
yiduaf to each nation. They nave
no relation to other nations or 10
other debts. The American tax
payer did not participate in rep
arations and acquired no territory
or any other benefits under the
treaty as did our debtors. There Is
no question as to the moral or con-
tractural obligation.
Debts Can Be Repaid.
"With the exception of some
minor accounts, perhaps five per
cent, ] am convinced that these
debts can be repaid in some reas-
enable period of time without real
ization of the oft-expressed undue
strain on the debtor countries or
the threat of flood Of goods from
debtor countries in such quantity
as would endanger employment of
the factories and workmen of the
United States.
"The proposals for further post
ponement of payment of interest
for certain number of years arise
from the belief that certain coun-
tries cannot physically make these
payments at the present time with
out undue strain, or that postpone
rnent of interest would continue to
general economic stability and the
more rapid recovery of these coun-
tries in which everyone would ben
eft. The British do not make
claims for such assistance from
US and are arranging their pay
ments.
Debtors on the Continent.
"The proposition, therefore, mar
rows itself to debtors on the con-
tinent. Our annual payments from
the whole of our continental debt
ors would amount to total Of
about $3.50, 100000 per year for In
terest and amortization. The bur-
den falls with different weight
upon each of the 10 differ
ent debtors. emitting the possible
five per cent that is hopeless of
collection, it will be found that re-
spective annual payments due to
us from different countries varies
in their burden upon them from
two to twelve per cent Of their gov
ernmental income.
'If there should be some of these
countries who should be relieved
of the annual payments for few
years in order to promote econo-
mic stability, then there needs be
a demonstration of the facts in
respect to each individual country
that would be convincing to the
American taxpayer and congress.
The taxpayer would naturally con-
slider that there are other things
of vastly larger dimensions than
tho postponement of $S50,000, ,000I
year which must march in adj
vance before economic prosperity
can be secured to Europe. For
economic stability requires that
there must be such political and
economic readiustment between
tho states of Europe as will bring
about an atmosphere of peace in
replacement of an atmosphere of
War.
Reduction of Armament.
There must he rcarrange-
mcnt of economic boundaries
of Europe that will give the
hope OF economic survival of
states which can be saved by
no financial operation of any
kind. There must be q reduce
ton OF armament, not only as
guarantee of peace but as n
contribution to the balancing
OF budgets and the Cessation of
initiation.
america has dealt with En-
rope during the last few years
in terms of ideaIism. Woyhay
always given; we have never
received. No one can deny
that we are capable OF great
sacrifice and of great generous
charity. We want TO take part
in asking u better world, but st
must be clear that sacrifice
and charity from America do
not themselves bring about n
cure for those evils which now
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