The Washington herald., 1922-10-17
|ALLESCANPAY
U.S.LOANS,SAYS
SECY. HOOVER
Declares Debt CanceIla-
tion Would Undermine
Good Faith.
ADDRESSES COP.
MEETING IN OHIO
Suggests Europe Should
Not Ask Further Delay
In Interest Payments.

In Interest Payments.
TOLEDO. Ohio. Oct. ls.-cancei-
lation Of American loans 20 for
eign powers would undermine the
whole fabric Of international good
faith" Secretary Hoover declared
here in an address before n Re-
publican meeting tonight.
Because Of his position in the
administration. his position on the
debt funding commission, the re-
spect with which his utterances on
international economies are received
abroad. and finally because OF the
political atmosphere Of the meet
ing here. IL was generally regard
ed as highly significant when he
said:
Il don't believe any public Of
ncial. either Of the United States
or Of any other country, could or
should approve the cancellation OF
these debts
Held n Official vk~wpstnt
AT this time, wnen the queS-
tion OF aiding Europe TO stabilize
her hscsl affairs has been er-
haustively discussed BY American
bankers and statesmen throughout
the world. Mr.. Hoover's words were
accepted as voicing the viewpoint
OF the administration.
Il have the feeling" be said.
that many men in Europe are
thinking Of these things In terms
of despair. due to their immediate
difficulties There is no need for
despair in the future Of Europe
IL II can maintain peace Its' hard
working population. its tremendous
industries. Its enormous productive
ity and its magnificent intelligence.
Its fabulous development Of skill
and scientific knowledge are vital
forces that must win IL they have
half a chance
Secretary Hoover said Europe had
made great strides since the arrnis-
uce and that her sole troubles now
were FISCAL and political"
Owed 20 Taxpayer.
Mr.. Hoover set out first. 10 clearly
emphasize the exact circumstances
Of the foreign Obligations. These
loans" he said. are often spoken Of
are, in fact. debts owing 20 our tax
payers. These lrans were made at
the urgent requests OF the borrow
ers and under their solemn assur-
ances OF repayment
The loans were individual 70 each
nation. They have no relation TO
other nations or other debts. The
American taxpayer did not psrtici-
pate in reparations and acquired no
territory nor any other benefits
under the treaty. as did our debtors
There is no question as to the moral
or contractual obligation"
Believes Debts Com ne Paid.
with the exception OF some minor
amounts. perhaps S per cent" he de-
clared. Il am convinced that these
debts can be repaid in some reason
able period OF time without realiza-
iion of the oft-expressed undue
strain on the debtor countries or
the threat of a flood Of goods from
debtor countries in such quantity
as would endanger employment Of
the factories and workmen OF the
United States"
In suggesting his solution. apart
from the debt Of Great Britain.
which. he said. Is TO be paid of. thus
eliminating one-half the problems.
Mr.. Hoover said:
Il. Annual payments Of all con-
tinenta' debtors could be at the
rate of $3.50, 900 annually for
interest and amortization or from
TO IL per cent of the respective
governments incomes
Must Reduce Armaments.
ponement OF interest payments
must be accompanied by convincing
demonstration OF facts thai such
postponement IL necessary TO pro-
mote economic stability.
IS. The hrst essential in restor-
ing economic stability is such po-
utical and economic readjustments
between the states Of Europe as
will bring about an atmosphere OF
peace in replacement Of an atmo-
sphere OF war. There must be a
reduction OF armament not only as
a guarantee OF peace hut as a con-
tribution to the balancing of bud
gets and the cessation OF imitation.
What the American people woud
do IN the circumstances that the
were put in operation" Mr.. Hoover
forces OF real economic stability
added. could easily be determined
when the time comes Our record
to date has been one Of helpful
ness"
Complex Question.
Mr.. Hoover's speech in full fol.
lows:
Proposals have been repeatedly
made over the last three years that
the loans from our government TO
foreign countries during the war
should in part or in whole he can
celed. either for moral reasons or
in the interest OF economic stability.
Less sweeping proposals have been
made that the payments OF interest
and installrnents as required by
Congress should be further post
poned The question is one Of the
most complex and dificult In char
acter that the American people have
ever confronted. II greatly con-
Germs American commerce. and
feel that widespread discussion is Of
great value TO the better under
standing OF the economic issues in
volved. Full understanding can be
advanced only by full and frank
discussion.
7 have the feeling that many
men in Europe are thinking ofthese
things in terms Of despair. due TO
their immediate diflculties. There
Is no need for despair in the future
Of Europe n IL can maintain peaca