Albuquerque morning journal., 1922-10-29
EUROPE CAN PAY
AMOUNTS OWED
NER|CA- H00VE R
Secretary Is Opposed to
Cancellation; No Reason
for Despair if Peace Is
Maintained Abroad.


Editors Note:--The following
speech by Secretary Of Commeret
Hoover, with reference to repay
ment of European debts to tn,
United States government, was de
llvered at Buffalo, N. Y, October
16).
Proposals have been repeatedly
made over the last three years thai
the loans from our government to
foreign countries during the wal
should in part or in whole be can
celled, either for moral reasons OF
in the interest Of economic sta
bility. Less sweeping proposals
have been made that the payments
of interest and installments as re-
quired by congress should be fur
ther postponed. The question is
one of the most complex and diff
ficult in character that the Ameri-
can people have ever confronted.
1t greatly concerns American COM
merce and l feel that widespread
discussion is of great value to the
better understanding of the eco
nomic issues involved. Full under
standing can be advanced only by
full and frank discussion.
No Need for Despair.
! have the feeling that many
men in Europe are thinking of
these things in terms of despair,
due to their immediate difficulties
There is no need for despair in tho
future of Europe if it can maintain
peace. Its hard working, popula-
ton, its tremendous industries, it's
enormous productivity, and its
intelligence, it's fabu-
lous development of skill and
scientific knowledge, are vital
forces that must win If they have
half chance.
These economic problems are
problems that we must vision over
years and decades. They must not
be obscured by fluctuation in ex-
change or by calculations Of trade
balances in terms of war and de-
preston. Europe has made great
economic progress since the ar
mistice. Its troubles today are
solely in the political and fiscal
field. Her social organization, her
agriculture, industry, transporta-
ton, and commerce have found
extraordinary recuperative powers
rom the depths of disorganization
md famine of 1919.
These loans to twenty nations
to about $4,000, 900, 900
md were nearly all demand obli-
cations. They now amount to
81 500, 100000 in principal and
accrued interest, for interest has
been practically suspended up to
late. The terms of repayment
we're to be determined by congress.
md congress has laid down the con-
litions under which payment can
,e extended over term of 25
ears. 1t is the duty Of the fund
ng commission to see that these |
erms are carried out and of course
10 alteration would be possible ex
ept through action of congress.
There are certain phases of this |
that seem to me to re-
Iuire emphasis.
Debts Owing Or Taxpayers.
First. These loans are often |
poken of as debts to our govern
nent. They are, in fact, debts
wing to our taxpayers. These
oans were made at the urgent re-
uest of the borrowers and under
heir solemn assurances of repay
nent. The loans were individual
0 each nation. They have no re-
alton to other nations or other
.ebts. The American taxpayer
id not participate in reparations
nd acquired no territory or any
ther benefits under the Treaty as
i'd our debtors. There is no
uestion as to the moral or con-
ractual obligation. The repudia-
ion of these loans would under
nine the whole fabric of interna-
Ional good faith. l do not believe
ny public official, either of the
Inited States or any other country,
ould or should approve their can
ellation. Certainly do not.
Second. With the exception of
ome minor amounts, perhaps 5
er cent, am convinced that these
ebts can be repaid in some rea-
enable period of time without re-
lization of the oft-expressed un-
ue strain on the debtor countries
r the threat Of flood of goods
.om debtor countries in such
as would endanger en-
loyment of the factories and
orkmen of the United States.
m convinced that in the, argu-
tents put forward in this conten-
on some very important contra
ening factors have not been given i,
efficient weight.
Debtors on the Continent.
Third. The proposals for fur
Ter postponement of payment of
iterest for certain number of
ears arise from the belief that
ertain countries cannot physically !
Iake these payments at the pres {
at time without undue strain, or
lat postponement Of interest !
ould contribute to general eco I
omic stability and the more rapid
scovery of these countries in
hich everyone would benefit. The
ritish do not make claims for {
ich assistance from us and are
their payments. This I
overs some s4,750, 100000 of the 6
'tal debt and thus clears up
early one-half of the problems at /
nee. The proposition, therefore, {
arrows itself to debtors on the II
ontinent. Our annual payments [
'om the whole of our continental s
ebtors would amount to a total {
about $35o,00O,00O per year for s
terest and amortization. The s
lrden Of payments falls with diff t
rent weight upon each Of the I
} different debtors. Omitting [
le possible 8 per cent that is {
opeless of collection, 1t will be {
,und that respective annual pay {
ents due to us from different
vary in their burden upon 6
lem from to 12 per cent Of their '
overnmental income. "
Atmosphere of Peace. II
Fourth. II there be some of
lese countries who should be re-
. I