The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-02-24
AFRAID LOANS
TO EUROPE GO
into ARMIES
Senators Critical of New
Private Loans-Would Like
Assurance Money Will Go
Into Industries.
PROGRESS THREATENED
By MARK SULLIVAN

WASHINGTON, ID. c., Feb. "a. -
Doubtless the American newspapers
are read pretty carefully by foreign
ambassadors resident in Washington
from the countries that want us to go
10 Genoa, and who also want to know
how our newly appointed commission
feels about the debts these foreign
governments owe Us.
In the newspaper accounts of the
speech Secretary Hoover delivered at
Chicago this week these ambassadors
ought TO be able to find some light that
is indirect and yet possible of some
degree of Interpretation as to the state
\ of the American mind.
q Mr.. Hoover is member of the new
commission to handle these foreign
debts. He is also one of the members
of the cabinet who knows more about
European conditions than most of the
others and whose opinions, therefore.
would be likely to have much weight
on the point of whether We are to go
TO Genoa or not. Mr. Hoover in his
recent speech, did not mention Genoa
and did not allude to the foreign
debts; but he did allude to the econ
omic practices of some of the govern
ments concerned
Progress Threatened
"1n Great Britain and some other
states" Mr.. Hoover said reasonable
hopes of economic stability have been
attained. Yet all this progress is
threatened by the steady degeneration
of governmental finance in some of
the states on the continent"
The armies being maintained at
great expense by some of these coun-
tries were then mentioned by Mr..
Hoover. To illustrate the size of these
armies. Mr.. Hoover said that if the
United States were following the same
practice we would have an army of
100000 and reserves of 100000.
So long as these countries continue
10 spend their money on armies OF
such size, Mr. Hoover continued
there is little hope of economic prog
ress. The economic loss in the de.
crease of national production and in
the effect such decrease has on ma
tional finance is one Of the great diff
ficulties of Europe"
Against Big Armies
For the foreign governments con
ttTHtu, iUe pOlIl OF lIlS lies III MT
Hoovers further statement that 1--WE
have a desire TO help. But before oul
strength can be employed toward eco
nAnomic stability a foundation of polit
fical stability must first be obtained
Economic stability cannot be created
in an atmosphere of alarms and O.
threats of political action and it's pos
sibilities of war Economic strength
haC. ,,t hull to-
Aside from this utterance of Mr.
Hoover's, some senators have recent
II raised a point about these countries
that owe us money. The senator:
question the business wisdom of Amer
ican bankers making private loans O
new money to European government:
hat already owe the United States
government huge sums long overdue.
Bad Practice
If this new money went into pro
ductive purposes. if it were used t.
revive and stimulate industry the sen
ators would find no objection: but i
il is used by the governments tia
borrow it to pay for the upkeep o
armies. and in other forms of expendi
ture economically unjustifable. III,
senators think it is bad practice
It is quite possible that we shall
each time when our government
will want TO look into new loans re
quested by our debtor government
from American bankers. The test o
whether we regard these new loans a
desirable to make or not will be de
termined by whether the money i
TO be used in productive industry. o
in the maintenance of armies ant
other unproductive government expen
diture on the part of nations who's
budgets have already been too loni
acknowledgements, 1922, by Ney
York Evening Post, Inc.