The New York herald., 1922-05-16
RUSSIA MUST ALTER
WAYS, SAYS HOOVER
America Should Hold AloOf
Until Confidence Is Re-
stored, He Declares.
SECURITY rs NECESSARY
Secretary Finds Some Progress
Made, but Warns Property
Rights Are Unsettled.

WASHINGTON, May 15. = Americas
only course toward Russia is to decline
relationship until confidence is restored
In the rights of property and the sane
tity of contract in that country, Secre-
tary Hoover declared in an address to-
night before the United States section of
the international Chamber Of Com
merce.
Russia, Mr.. Hoover asserted, has made
some progress toward the primary eco
nomic essentials necessary to the res
toration of confidence, but even under
the present somewhat modified system
there both security and promise of pro-
ductivity are insufficiently certain. This,
he added, must be made clear to Amer
lean investors whose savings. are at
stake and American merchants whose
goods are to be contracted for.
Unless foreign merchants and In
vestors enjoy property and security Of
contract under terms of the institutions
by which they acquired them or. alter
natfvely, receive compensation for the
loss Of them, Mr.. Hoover said "the
whole fabric of international trade and
commerce will disappear and the world
Will go up in chaos"
Real and lasting help to Russia must
be based upon cold economies or II will
bring no real reconstruction or relief
to that country, he asserted, adding that
the establishment of a Soviet Ambassa-
dor to Washington would not cause
goods to flow in IAN economic vacuum"
He reviewed the assistance given Rus
sia In famine relief, but maintained
that charity was not the solution for
Russia. which must work out her own
political and economic system
Three solemn facts are outstanding"
Mr. Hoover continued 1.-THE first Is that
when Russia was running full blast
rievious to the war she took / per cent
OF the exports of the United States.
which. when reduced into terms of work.
Ing time of our workmen and farmers.
reant roughly the employment of 10000
Americans. We are not. therefore. nor
ever will be. dependent upon Russia
for the physical welfare of our people.
THE second is that Russia Is bank
r,pt. she has no productivity her fac
tories and mines, even where founded
cr Russian raw material and repairs.
ere producing but from 9. to Is per
cert; railways are transporting less
than per cent. of their pre- e-war
capacity; her agricultural production Is
h'low her own needs instead of her
rcrmar great surplus she has eaten up
her entire fat and can for a long time
Rave nothing to exchange for the SER
v1es of our workmen or the savings
CT our investors. Therefore If we would
supply work. capital and talent to the
reconstruction and productivity of Rus
s'a II must be given upon credit or
CHARITY.
Third. when our people are called
rrcn to place their savings into such in
vestments they will be likely to ask for
security for repayment and evidence
that there will be a return of produc-
t;vlty In order that payment may be
made.
''Our Government stated these stand
ards one year ago as follows: No
Testing good can result so long as the
pre- sent causes of progressive impover-
isrment continue to operate. It is only
In the productivity OF Russia that there
is any hope for the Russian people. and
Il is idle to expect resumption of trade
r-til the economic basis of production
is securely established. Production Is
conditioned upon the safety of life. the
sanctity of contract and the rights of
fee labor"