The New York herald., 1922-10-17
HOOVER SAYS WAR
DEBT MUST BE PAID
Continued from First Page.

which every one would benefit The Brit
ish do not make claims forisuch assist
ance from us, and are arranging tioir
payments.
"If there be some ~ these countries
which should be relieved of the annual
payments for few years. in order TO
promote economic stability. then there
needs be a demonstration or the facts III
respect TO each individual country that
would be convincing to the American
taxpayer and to Congress.
Economic stability requires that there
must be such political and economic re-
adjustment between the states Of Europe
as will bring about an atmosphere or
peace in replacement of an atmosphere
Of war. There must be rearrangement
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 reduction of armament not
only as n guaranty of peace, but as a
contribution to the balancing of budgets
and the cessation OF Initiation. There
must be a general intent TO create good
will.
Dealings With Europe.
America has dealt with Europe dur
ing the last few years in terms OF
idealism. We have always given; we
have never received No one can deny
that we are capable OF great sacrifices
and of great generous charity. We want
to take part In making q better world
but 1t must be clear that sacrifices and
charity from America do not themselves
bring about cure for those evils which
now gnaw at Europe's economic life.
Assumptions are made that the only
l.F 1sAt. lNn
made in international balances is
through the shipment Of goods or gold :;
that these shipments would necessarily
be direct from the debtor country to US ::
that such shipments might embarrass
our industries and employment.
1T does not follow that the whole
of these debts are either to be paid In
goods or that competitive goods neces-
sairly come into our market at all from
this cause. II America continues strong
and prosperous, our ability to consume
European goods of the type we do not
ourselves produce will be greatly in
creased, and Europes ability to pay us
would be still further increased. The
assuming that the present surplus of
exports over imports represents the
available balance with which a country
can meet a long time debt ignores not
only the fact that the movement of
goods alone does not form the whole
basis of payment but it ignores the
time element. Due TO increasing popu-
laion, development OF science and
natural resources, the worlds inter-
national commerce doubles nearly every
fifteen of twenty years. and this debt
burden being fixed burden will thus be
a decreasing burden"
International Balances.
IF we examine our situation in inter-
national balances during the last fiscal
year, we will find that the world shipped
us $4,000, 5000 worth of goods. This
sum added to the items of tourists OF
loans and remittances and other forms
of invisible exchange, gave the world
a paying power to us Of about SAL 100 .OOO,- :
900. In addition, the world shipped us
over S4b0, ,000.0 600 In gold and silver. Dur
ing the year we exported $4,000, 100000
In goods. Thus during that fiscal year
the world had n paying power TO us in
excess of goods bought from us of about
$3.50, 900, 600. This excess was probably
used to readjust previous private debts.
THE assumption that payments from
debtor countries would need to be made
IN gold or in goods direct to the United
States. or that goods will flood our mar
kets should, Of course, be modified to
the extent of the use of invisible ex-