The New York herald., 1922-11-13
MONDAY. NOVEMBER 10. 1922.
Hoover on Foreign Debts.

There is room for difference of
opinion as to which of the European
countries can pay their foreign war
loans and which of them cannot
There is room for difference of
opinion as to the wisdom of a gen
eral cancellation of the interallied
war debts, whether the debtors can
pay them some time in the dim future
or whether they never can pay them.
And there is room for difference Of
opinion, if the loans are to be paid
In full or in part, or soon or late as
to how the matter should best be
handled for the sake both of the cred
itors and of the debtors.
But opinions on methods and prin-
ciples are one thing facts are an
entirely different matter. Thus Sec
retary HoovER's views expressed at
Toledo that Europe could easily pay
the United States, as based on what
he assumed TO be the facts, are chal-
. lenged by DR.. BENJAMIN M. AMBER
soN, Jr., economist OF the Chase
National Bank.
Mr.. Hoover declared, for example,
that as net result of all current
dealings with the United States for
the fiscal year of 1922 Europe had
clear surplus OF three-quarters Of a
billion of dollars available for appli-
cation to debts owed to us. This sup
posed net balance was made up by
putting together commercial and
other credits extended by this coun-
try, including ''the growing volume
of investments made by our people
In foreign countries; spendings of
American tourists, steamship and in
surance charges payable abroad, re-
mittances by alien residents, com-
nodities sold to the United States
and gold delivered here in settlement
of accounts.
lished records account for nearly a
billion dollars lent abroad by Amer
leans in the year of Secretary
HoovER's calculations. With allow
ances for retunding loans included
in that billion there was left $780,
100000. But of this $500, ,000,0 900 went
to Canada, South America, the Far
East and otherwise was scattered
pretty much over the rest of the
world. What Europe got of the loans
therefore was not a billion but less
than a quarter of a billion--to be
more exact, about s244 100000.
That loan item had vast ground
to cover in the matter of trade opera
tions where the account stood:
U. S. exports to Europe. so, ,Os7. .o27 sos
T. s. imports from Europe. s3O.473,712
Europe's adverse balance. i,2s6,553,s93
Nor did Europe have a chance to
Offset this adverse trade balance with
the so-called triangular settlements
where England say. owes us on trade
but South America. say, owes Eng
land on trade. while we owe South
America on trade. thus permitting
England to use the South American
balance against the United States to
help pay us.
Generally speaking. Europe has
been faring no better as to trade bal
ances with other countries than Eu-
rope has Jared with us. She Is a
debtor on foreign trade both with
tho United States and with the
rest of the world. In many coun-
tries besides ours she has enormous
trade deficits.
An illustration Is Argentina in
South America. In the last calendar
year Argentina shipped $4,000, 900
pounds sterling of goods TO Great
Britain but bought only 27,600,O0
pounds sterling of goods from Great
Britain. Again Argentina shipped
S33.000,000 francs Of goods to France
but bought only 249,OO0,00O francs OF
goods from France. Europe cannot
draw on such country to pay part
of our trade bill against Europe.
This Is why Europe had to strain
herself to the limit to ship gold to us
all through the fiscal year of 1922 in
settlement of trade accounts. II is
( why, as DR. ANDERSON figures IL. Eu-
rope, far from having any $3.50 0O0,-
600 surplus with which to make
interest payments on the war debts
TO us, had and has heavy deficit
20 face in this country, after current
loans, gold payments and all are
counted up.
In none Of this, as THE NEw YORK
HERALD sees II. is there conclusive
argument as TO why the external war