The New York herald., 1922-10-17
HOOVER SAYS EUROPE
MUST PAY WAR DEBT
Declares Cancellation Would
Undermine international
Good Faith.
HE DEPRECATES DESPAIR
Believes No Public Official
FavOrs Remission of the
Obligations.
HE DEPRECATES DESPAIR

TOLEDO. Ohio, Oct. 16.-Cancellation
of the war loans by the United States
to the allied and associated nations
would undermine the whole basis of
international good faith, Secretary of
Commerce Hoover, member of the
Allied Debt Commission, declared to-
night in an address here. He added
that he did not believe any public Off
cial, either in the United States or any
other country. could or should approve
their cancellation.
Proposals have been repeatedly made
over the last three years that the loans
from our Government to foreign coun-
tries during the war should in part or in
whole be cancelled. either for moral rea-
sons or In the interest of economic
stability" he said. LESS sweeping pro-
posals have been made that the pay
ments of interest and installments as
required by Congress should be further
postponed. The question is one Of the
most complex and difficult in character
that the American people have ever con-
fronted. 1t greatly concerns American
commerce and / feel that widespread
discussion is of great value to the better
understanding of the economic issues
involved Full understanding can be
advanced only by full and frank dis
cussion.
No Need for Despair.
II have the feeling that many men in
Europe are thinking of these things I'm
terms of despair, due to their immediate
difficulties. There is no need for despair
In the future of Europe If 1t can main
tain peace. It's hard working population,
its tremendous industries, its enormous
productivity and its magnificent intel
ligence, its fabulous development Of skill
and scientific knowledge, are vital forces
that must win IL they have half a
chance
These economic problems are prob
lens that we must vision over years and
decades. They must not be obscured by
fluctuations In exchange or by calcula-
tions 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 field. Her social or
ganization. her agriculture industry
transportation and commerce have found
extraordinary recuperative powers from
the depths of disorganization and famine
of 1919.
These loans to twenty nations
amounted to about 5000. 000.0 and
were nearly all demand obligations.
They now amount to S11, 500, 900, 900 in
principal and accrued interest, for inter
est has been practically suspended up to
date.
Debts to Taxpayers.
These loans are. in fact, debts owing
to our taxpayers. These loans were
made at the urgent request of the Dor.
rowers and under their solemn assuI
ances of repayment. The loans were n
dividual to each nation. They have no
relations to other nations or other debts.
The American taxpayer did not partlci-
pate in reparations and acquired no ;.r-
ritory or any other benefits under the
treaty, as did our debtors There - no
question as to the moral or contractural
obligation. l do not believe any public
official, either of the United States or
any other country could or should APP
prove their cancellation.
with the exception of some m,iiDr
amounts perhaps per cent, am con-
vinced that these debts can be repaid IN
some reasonable period OF time without
strain on the debtor countries or The
threat of flood of goods from debtor
countries in such quantity as would en-
danger employment OF the factories and
workmen of the United States. / am
convinced that. in the arguments put
forward in this contention. some very
important contravenng factors have not
been given sufficient weight
Proposals Regarding Interest.
The proposals for further postpone
ment OF payment of interest for "A GER
tain number Of years arise from the be-
lief that certain countries cannot physi-
cally make these payments at present
without undue strain. or that postpo 1e-
ment OF interest would contribute 10
general economic stability and the more
rapid recovery of these countries, IN
Continued on Page Nine.