Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-10-17
Hoover on War Debts.

Straighter thinking on both sides
of the Atlantic ought to result from
the speech delivered at Toledo last
night by Secretary Hoover, dealing
with the question of allied indebted
ness to the United States. MIR. Hoover
took a strong stand against cancella-
ton of the indebtedness. and showed
that there is neither equity nor logic
in the cancellation proposal. AS the
Secretary Of Commerce, who Is
member Of the funding commission
created by Congress to deal with the
obligation Of Europe to this govern
ment, enjoys the confidence Of the
President and the other members of
the administration to an unusual de-
gree, it is a fair assumption that his
utterances at Toledo represent the
official and considered views of the
American government on this momen.
tous problem
Mr.. Hoover disposes quickly OF the
question of the morality OF the In
debtedness. These, loans," he said,
were made at the urgent request OF
the borrowers, and under their solemn
assurance of repayment" That Is all.
They stand as any other Indebtedness
so contracted stands. with the bor-
rover morally obligated to repay and
the lender morally entitled to receive
repayment.
The Secretary Of Commerce. If any
one. should be concerned over the pos
sibility of the American market being
flooded with foreign-made goods sent
in payment of debts, but Mr.. Hoover
is not at all alarmed. He calls atten-
ton to the fact that large and grow
ing proportion of our imports con-
sists of the products Of the tropics
which do not enter into compeu'
ton with American products. and
he sees no reason why European
debtor nations should not supply
tropical countries with their manufac-
tured goods and turn over share OF
the proceeds to US In the form OF these
tropical products, which we need and
will use on an increasing scale.
But the real meat of Mr.. Hoover's
presentation of the case is his re-
hinder that these economic problems
are not problems of today. but must
be visioned over years and decades.
Because debtor is not in position to
nav today it does not follow that he
will not be solvent a few years or q
few decades hence. While Mr.. Hoover
does not specifically mention the fact,
he undoubtedly had in mind that most
of the nations which owe us money
took from Germany vast wealth in the
form of undeveloped territories, and
when in the course of time these ter
ritories are exploited the nations con-
trolling them not only will pay US on
out of the. proceeds. but will have IN
calculable wealth left over.
No man in America. or in the world,
has shown broader understanding OF
or keener sympathy with Europe's diff
ficulties than has Herbert Hoover.
John Maynard Keynes said that
Hoover took into the councils at Paris
"preciseiy that atmosphere of reality,
knowledge. magnanimity and disin-
terestelness which, if they had been
found in other quarters also, would
have given us the good peace"
So when Mr.. Hoover discusses Eu-
ropes economic and financial difficult
ties it is as well informed friend
and sincere we'll ,wisher not as a
grasping creditor. that he speaks. and
in the clear light of this reasoning the
outputtings of emotional theorists lose
weight.