Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1922-09-28
HELP FOR EUROPE
PROBLEM FOR U. s.
HERBERT HOOVER, SECRETARY
OF COMMERCE. TELLS WHAT
FOREIGN NATIONS MUST DO.
MAJOR ISSUES IMPERATIVE
Delay in Accomplishing Economic and
Financial Reforms Doesn't ImperiI
Civilization, but Further Assistance
Requires Restoration of Confidence.
BIZ JAMES ?. noRNApAY

BY JAMES P. HoRNADAY
Washington.-"Noxt to our domestic
economic problems, the matter upper
nlost in the minds vt all of US must
manifestly be the advance of Europe
toward the degree of stability which
we ourselves enjoy. The steps neces-
sary for its attainment have been in
vigorous debate for the last three
years Business men and economists
the world over have long been IL COM
mon agreement upon the major steps.
This statement was made by Herbert
Hoover, secretary of commerce. Con.
tinuing, the secretary said:
THE conclusions OF the great ma
jority include:
First, such political relations be
tween the states in Europe themselves
as will produce an atmosphere of
peace and destroy the atmosphere of
war.
Second, the reduction of armament
not only to lessen government expendis
ture but to give confidence Of peace
Third, the nter-governmenta debts.
including German PREPARATIONS, to be
fixed upon such a definite basis of
payment of interest and principal as
will create reasonable confidence that
payments win be made.
Fourth, the balancing Of budgets
more through the reduction of expendi-
ture than the increase in taxation, and
a I,s
! in currency and short-time bills.
Fifth, the ultimate establishment of
| the gold standard with the assistance
of either credits or gold loans, and,
where necessary, the acceptance OF
diminished gold content to many old
units of currency.
There are many less important
steps but they become easy and GER
tain when these major issues are nc
complished. If these measures could
be accomplished tomorrow the stream
of commerce and industry would rush
economic recovery at a pace which
would amaze the world
Doesn't Fear General Collapse.
Il am not one who believes that civ
ilization will crash because these meas
urea have been delayed by some ma
lions in the multitude Of passions and
almost insolvable difficulties they con
front as the aftermath of the greatest
Of wars. We are now more than three
/ years from the armistiee and despite
4 the failure TO secure universal eco
I no taf ett,
upon the continent, except Russia, have
made very definite progress in these
! directions. The very fact that these
! states have survived at all is proof Of
| the virility of their institutions.
| Our people have deep solicftude
for Europes prosperity and a sym
pathy for her difficulties, which are
comparatively so much greater than
our own. Cur interest extends far
beyond considerations of purely eco
nomic interest. Her burdens. indeed
| do react on our employment and the
difficulties of our farmers and Of our
merchants. In argument of some Eu-
ropean business men and economists.
| however, there is a tendency to over
| estimate our economic dependence up
on Europe and there - sometimes a
tendency TO stress too highly the word
responsibility as applied TO the United
! States. Our economic progress Is to
some extent freeing itself from de-
| pendence upon the international situa-
/ ton, as witness our recovery from the
world depression, and we have first
to keep America strong II we would
be Of assistance 10 anybody.
We Have Given Mich Aid Already.
"We have, indeed. poured our re-
sources into the assistance of Europe
ever since the war was won-to tota,
Of probably ynore than four billions os
dollars of governmental and private
loans, with an addition Of over a bill
lion Of charity. If we had not done
so, the continent would have sunk into
chaos long before this. 1t is not our
desire TO dictate but to cooperate in
every way that is possible and practi-
cable, and that viii be effective.
"When we come TO the problems Of
further economic assistance We must
deal with very realistic questions:
First, the most unlikely event on the
economic earth is that the United
States viii, as a government again
engage In any governmental loans and
second, as financial assistance must
arise from our private investors then
in order to attract these investors,
confidence must be maintained In the
progress toward peace and economic
stability In that nation which wishes
assistance from our people.
''But loans that are dissipated either
directly or indirectly In military ex-
penditure or In unbalanced budgets
In the bolstering up Of inflated cur
rencies, are a double loss to the world
They are not only loss In that they
add nothing to increased productivity.
but they are loss in that they entail
the postponement Of those measures
which are vital for the economic re-
Mobilization Of the world"