The Washington herald., 1922-05-17
Solution of Economic
Problems Vital, Ex-
perts Declare.
CONVENTION HEARS
OF WORLDS NEEDS
Board of Directors Nomi-
mated and Corner
stone Laid.

Solution Of European economic
problems, as well as our own. are
vital for establishing industrial sta
bility throughout the world, ac-
cording to Secretary of Commerce
Herbert Hoover, who addressed the
second general session of the Cham
Der of Commerce of the United
States last night at Convention Hall,
Fifth and K streets northwest.
The great debate at Genoa" said
the Secretary. has served to con-
firm again the need for certain
major steps for the attainment of
European stability" which he enL-
merated as follows;
Outlines Europe's Needs.
First. Such political relations
hstween the states in Europe them
selves as will produce an atmos-
phere of peace and destroy the at
mosphere of war
Second The reduction of arma-
ment. not only to lessen govern
fidence of peace.
Third. The iptergovernmental
debts. including German repara-
tions. to be fixed upon such a def
mite basis of payment of interest
and principal as will create reason
able cofidence that payments will
be met
Fourth. The balancing of bud
gets, more through the reduction of
expenditure than increase in taxa
tlon. and a cessation of consequent
imitation hf, in currency and short-tine
Fifth. Ultimate establishment of
the gold standard with the assist
90 .FN
and where necessary the acceptance
Of diminished gold content to many
old units of currency"
Supplementing these major meas
ures. the Secretary said:
There are many less important
steps. but they become easy and
certain when these major issues are
settled. II these measures could be
accomplished tomorrow stream
of commerce. and industry would
rush economic recovery at a pace
which would amaze the world"
Comme ntinR on governmental
loans. Mr.. Hoover declared IL to
be the most unlikely event upon
the economic earth that the United
states will. as a government. again
engage in any governmental loans"
Recalling our wartime loans to
the allied governments. Secretary
Hoover declared that web ave also
poured out our resources to assist
Europe since the end Of the war
to the extent of more than
$4,000. .O0O. 900.
scores UnwIse Lending.
Referring to private loans to
Europe. the Secretary said:
There are some matters in the
lending Of private capital that are
Of concern to the nation as a whole.
For instance II Is essential that
these loans should be confined to
reproductive purposes. All loans to
foreign nations which are not en-
ployed for reproductive work are
destruction of the capital. The |
furnishing of raw materials. the |
construction of transportation IA
cilities. public utilities. factories |
and production throughout the |
world. is a use for American capi- |
tai that blesses both the borrower
and the lender. The upbuilding
Of the rest of the world and it's
consuming power adds primarily to
world well-being. but il also adds
to the future demands for our own |
labor. the products of our own
farmers, and the services of our |
own merchants.
But loans that are dissipated |
either directly or indirectly in
military expenditure or in unbal- |
anced budgets. in the bolstering up
Of inflated currencies. are a double |
loss to the world. They are not |
only loss in that they add MOTH |
ing to increased productivity, but |
they are a loss in that they entail |
the postponement of those meas
ures which are vital for the eco
nomic rehabilitation of the world"
Farm Chief speaks.
Effect of the European situation |
upon American agriculture was
discussed by James R. Howard |
president of the American Farm |
Bureau Federation. of Chicago |
who followed Mr.. Hoover.
He declared the farmer to be
more directly interested in Euro
pean markets at this time than |
either banker. merchant or manu-
fscturer. America" he said, "ex-
ports one-half of its cotton. almost |
one-fourth of its wheat. as well |
as vast quantities OF other cereal |
and pork products"
speaker. are forced to compete with !
South American countries, India. |
Africa and Australia in the Euro |
--ean markets. and IL is imperative
hat America and Europe arrive at |
9 basis of reciprocal trading IL the |
S--neE Is not to be thrust from the |
held of competition.
Directors Are Nominated.
At the morning session the fol-
lowing were nominated as members
Of the board OF directors. and 1t is
expected these choices of the ma
tional councillors will be confirmed |
unanimously on Thursday. when
elections Will be held:
First district, Alyan T. Sinonds, |
Fftchburg. Mass; Second, Ernest 7. |
rrigg. Philadelphia: Third, John M.
Crawford. Parkersburg; Fourth, NJ.
]. Sanders. New Orleans; Fifth, John
w. Shartel. Oklahoma City: Sixth.
Edwin c. GibbA Cincinnati; Sew
enth. William J. Dean. st. Paul:
Eighth. Clyde c. Dawson, Denver:
Ninth. o. NJ Clark, Portland, Ore;
civic development. Arthur s. Bent
Los Angeles; domestic distributor.
Fred 7. Mann. Devils Lake. N. Oak