Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-10-17
HOOVER UPH0LDS
U. S.FORE|GN LOANS
Secretary of Commerce De.
clares There Should Be No
Debt Cancellation.
GOOD FAITH CHALLENGED
Sees Great Mistake in Case There
Is ANY Attempt at
Abrogation.
GOOD FAITH CHALLENGED

IOLEDO, OhtO, OCTOBER like
quotation of the loans made by the
United States to the allied and ASSOC
ciated nations during the war would
undermine the whole fabric Of inter-
national good faith. Secretary of
Commerce Hoover. member Of the
allied debt commission. declared last
night, In an address here. He added
that he did not believe any. public
official. either in the United States
or any other country, could or should
approve their cancellation.
These loans ere. in fact. debts ow-
ing to our taxpayers" Mr.. Hoover
said. They made at the ur-
gent request of the borrowers and
payment. The loans were individual
to each nation. They have no rela-
tion to other nations or to other
debts. The American taxpayer did
not participate in reparations and
aean.rrd Il" territory OF any other
benefits under the treaty as did our
debtors. There is no question as to
the moral or contractual obligation.
Sees No Danger.
With the exception of some minor
amounts. perhaps 5 per cent. 1 am
convinced that these debts can be
repaid in some reasonable period OF
time without realization OF the Oft
expressed undue strain on the debtor
countries OF the threat of u flood, OF
quantity as would endanger employ
ment of the factories and workmen OF
the United States.
THE proposals for further post
ponement of payment Of interest a
certain number of years arise from
he volt et countries
not physically make these payments
at the present time without undue
strain. or that postponement OF inter-
est would contribute to general eco
recovery Of these countries: in when
every one would benefit. The British
do not make claims for such assist
ance from US and are arranging their
payments.
$3.50 ooo. ooo. 900 a Year. .
THE proposition. therefore. mar
rows itself to debtors on the CONT
nent. Our annual payments from
the whole of our continental debtors
would amount to a total OF about
$3.50, 200. 900 per year for. interest
and amortization. The debtors. omit
ting the possible per cent that is
hopeless OF collection, will find that
respective annual payments due to
US from different countries vary IN
their burden upon them from to
IL per. cent of their governmental
income.
"If there he some OF these coun-
tries who should be relieved of the
annual payments for a few years in
order TO promote economic stability.
of the facts in respect to each indi-
vidual country that would be convinc-
ing to the American taxpayer and
to Congress. The taxpayer would
naturally consider that there are 9TH
er things of vastly larger dimensions
a year. which must march In advance
before economic prosperity can be Sc
cured in Europe. For economic sta
bi1ity requires that there must be
auch political and economic readjust-
ment between the states of Europe
peace in replacement Of an atmo-.
Aphere Of war.
Must Cut Armament.
There must be Encouragement OF
economic boundaries of Europe that
will give the hope of economic sur
vfval of states which can be saved
by. no financial operation of any kind.
There must be reduction of arma-
ment not only as guarantee OF
peace, but as q contribution to the
balancing of budgets and the cessa--
lion OF lnHatiOn.
America has dealt with Europe
during the past few years in terms
of idealism. We have always given:
we have never received. No one can
deny that we are capable Of great
sacrifice and of great, generous char
ity. We want to take part in making
q better world, but 1t must be clear
that sacrifices and charity from
America do not themselves bring
about q cure for those evils which
now gnaw at Europe's economic
ltfAr