New-York tribune., 1922-11-12
Orerhar,ging Factor

"Parenthetically it may be observed
that the Interallied debt is one of the
least rugent of the many elements In
the decentralization of Continental
Europe. iWth the exception of Great
Britain, none Of our Allies is making
apyments to us, nor are we making de.
mands on them for immediate pay
ment. No exchange is being drawn In
connection with these debts, except the
British debt. None the less, the Inter
allied debt is very serious, overhang-
ing factor, which must be cleared up
before conditions can really be made
straight. gs
"One ventures to express dissent
from Mr.. Hoovers views with difgi-.
dence. His knowledge of European
conditions is vast, and his practical
wisdom is great. Few men indeed
have contributed as much as he to q
clear understanding of these problems.
AS regards the immediate situation,
however, 1t seems clear that Mr.
Hoover's figures present very unduly
optimistic picture. He lists a large
number of invisible items in the in
ternational balance sheet which, he
says, 'sli combine to furnish a large
supply of our money to Europe with
| winch they In turn can make paymens
for interest on debts Among tiiese
invisible items Mr.. Hoover includes
the growing volume of investments
made by our people in foreign
| countries
"The published records of foreign
loans made by American investors,
during the fiscal year ending June 80.
ls22-the period of Mr.. Hoover's conn
putations-indicate that nearly a bill
lion dollars was loaned abroad. Allow
ing for refunding losns, the amount is
still in excess of S850,O00,0Oo. OF this.
however, only about S244,o00,000 was5
loaned to Europe. The rest, an amount
in excess of Se00,00o 900, was scattered
oil over the world. Canada received
much of il. South America received a
large part. The Far East received a
good deal. When this correction is
made, Europe's supposed $750,000, ,00D !
surplus is Immediately reduced to-
under $150,0oo,oo0.
Trade Relations
Moreover, when examination Is
made of direct trade relations between
Europe and the United States. the
showing is less favorable to Europe (
The commodity exports and imports
between Europe and the United States
in the fiscal year ending June so, 1922.
were as follows;
y. .. exports TO EUROPE. p ,0b1 y82t TOO
y. S. imports from Europe $50, ,473,Tiz
EXCESS exports ......... ,236 ,6b3 ,S93
Europe's adverse balance with MS is
thus greater by S73,3S1 .3o4 thar is the
adverse balance OF the world as a.
whole with us. The same thing ap-
pears when the figures for gold and
silver are examined. Instead of the
$50 millions balance mentioned in Mrs
Hoover's figures, Europe has balance
of only $50 millions with the UnIted
States.
Viewing the relations between
Europe and the United States alone
during the fiscal year just passed, 1t
appears chat Europe had a deficit
rather than surplus of 750 millions
oa current items.
I'm so far, moreover, as Europe's
paying power in our markets comes
from shipments of gold, it is bad
sign rather than good sign. We have
100 much gold already and Europe
has too little. 1t is evidence of weak
ness rather than of strength that she
lis obliged to continue draining her
inadequate gold reserves in order TO-
meet obligations in this country. IL
is. moreover, conclusive evidence that
Europe has no such surplus paying
power In cur markets as Mr.. Hooverf
| figures would Indicate"