New-York tribune., 1922-10-17
Reputation of It's Debt
Would Undermine In
ternafi0nal Confidence.
He Warns in Address
Resources Ample
If Quarrels End
Fear That u. S. Markets
viii Be Flooded Is
Untenable, He Declares
specsaI Dispatch 20 Tae yr;b,,.

" wv 1o.---1t Is Lne DUTY
OF the funding commission recently
created by Congress to see chat the
terms of repayment Of the Allied
debt to the United States are carried
out, Secretary of Commerce Hoover
declared in an address here tonight.
| The whole fabric of international
good faith would be undermined by
repudiation of the loans made by the
United States to the Allies and the
associated nations in the World War.
said Mr.. Hoover, ssho is a member
OF the funding commission. He did
not believe any public official, here
or abroad, could or should approve
their cancellation.
These loans are, in fact, debts owing
to our taxpayers" Mr.. Hoover said
"They were made at the urgent request
! Of the borrowers and under their
solemn assurances of repayment The
loans were individual to each nation.
They have no relation to other nations
or to other debts. The American tax
payer did not participate in repara-
tions and acquired no territory or any
other benefits under the treaty as did
our debtors. There is no question as
TO the moral or contractual obliga-
tion.
Britain Ready to Pay
The Secretary pointed out that Great
Britain had not asked for relief and
said the problem, therefore, centered
on the debtors on the Continent. The
burden of payment, he added, would
fall upon nineteen different debtors.
The annual payments, he estimated,
would be from to IL per cent of their
! governmental income.
Mr.. Hoover declared that with the
exception of some minor amounts
which he estimated at S per cent, the
sums could be repaid In reasonable
period Of time without strain upon the
debtors. Nor did he fear the threat
of flood of goods from Europe in
such quantity that workers in the 4
United States would feel economic i'll
effects.
"If there be some of these countries
who should be relievsd of the annual
payments for q few years in order to
promote economic stability, then there
needs be demonstration of the facts
in respect to each individual country
that would be convincing to the Ameri-
can taxpayer and to Congress- the
Secretary continued. "The taxpayer
would naturally consider that there
are other things of vastly larger d.
mensions than the postponement of
$S50,000,000 year which must march
in advance before economic prosperity
can be secured to Europe. For eco
nomic stability requires that there
must be such political and economic
readjustment between the states of
Europe as will bring about an at
mosphere of peace in replacement of
an atmosphere of war"
America earnestly wishes to be
helpful to Europe, but economic mat
ters require a degree of ideaiism that
will do justice to the American people.
as well as to be helpful to peoples
abroad"
Mr.. Hoover's Address
Mr.. Hoover's address was as follows:
Proposals have been repeatedly
made over the last three years that the
loans from our government to foreign
countries during the war should il, part
or in whole be cancelled, either for
moral reasons or in the interest OF
economic stability. Less sweeping pro-
posals have been made that the pay
ments of interest and installments es
required by Congress should be fur
Their postponed. The question is one
of the most complex and difficult Ia
character that the American people
have ever confronted. 1t greatly con-
Germs American commerce, and ! feel
that widespread discussion is of great
value to the better understanding Of
the economic issues involved. Full un-
derstandiug can be advanced only by
f,fll and fsnpk ,sicorccias,
II have the feeling that many men
in Europe are thinking Of these things
in terms of despair, due to their inn
mediate difficulties. There is no need
for despair In the future of Europe
if it can maintain peace It's hard
working population, its tremendous IN
dustries. its enormous productivity and
its magnificent intelligence, its fanu-
lous development of skill and scientific
knowledge are vital forces that must
win If they have half chance
These economic problems arc prob
lens that we must vision over years
and decades. They must not be OBJ
scured by fuctuation in exchange or by
calculations of trade balances in terms
of war and depression. Europe has
made great economic progress since the
armistice. Her troubles to-day are
solely in the political and fiscal ield.
Her social organization, her agricu3-
ture industry. transportation and COM
merce have found extraordinary recu,
perative powers from the depths af
disoxganization and famine Of 1910.
Status of Debt Summarized
sThese loans to twenty nations
amounted TO about $4,000, ,00o, 900 and
were nearly ali demand obligations.
They now amount to $I1 SOC, ,000. coo In
principal and accrued interest. for in
terest has been practically suspended
lup to date. The terms of repayment
were to be determined by Congress and
Congress has laid doMA the conditions
under which payment can be extended
cvex term OF twenty-five years. It IL
tho dpty Of the Funding Commission to
see that these terms ere carried OUT
and, Of course, no alteration would be
possible except through action Of
Congress-.
There are certain phases cf this dia.
cussion that seem to ma to xealiirs
emphasis.
FirstThese loans are often spoker,
Of as debts TO our government. They
are, In fact, debts owing 10 our taxpays
ers. These leans wese made st the
urgent request Of the borrowers Ksld
under their solemn assurances of re-
payment The loansexrre individual 10