Evening star., 1927-05-20
HOOver's Advice to Restrict
Loans Abroad Widely Discussed

Much frank discussion has followed
the statement by Secretary Hoover
before the Pan-American Commercial
Conference that American loans
abroad, either public or private,
should be made only for productive
enterprises. His more specific ad
vice is that money should not be
loaned "for the balancing of budgets,
for purposes of military equipment,
for war purposes, or even for the type
of public works which do not bring
some direct or indirect public return.
1.-THE voice of experience" is heard
by the Cleveland News GndependenO
al saying, ''in stentOrian tones, that
this Nation should not lend Its pup
lie fun s to any other country for use
in making war or anything else.
Assuming that "our international
bankers, claiming that they run their
own risks, make protest against any
interference with their business" the
News declares: 1.-THE proposed en-
barge on international borrowing,
whether declared by other countries
or by ours, might tend to improve
public finance, national credit, COM
mercial independence, friendly rela-
tions and other things"
''Mr. Hoover's suggestion is the
idealistic course to pursue" according
to the Newark Evening News Qnde-
pendenD. which believes that ANY
other plan puts a dangerous power IN
the Governments hands. The News
would guard against "a power to use
American capital to support the pol
lev of any given administration" and
contends that when the Government
approves a loan, such as that to the
Diaz regime in Nicaragua, it puts it
self under moral obligations, at least
to the private concern making the
loan" The Winston-Salem Journal
iDemocratic) maintains that 'unques-
tionably, wars are the most unproduc-
tive of all human enterprises. They
settle nothing. They unSettle every
thing. And they leave behind them
over and above the unspeakable hui
man suffering which they entail
staggering debts, which must be paid
by posterity," concludes the journal.
''If less were spent in armaments,
more could be spent in productive en-
deavor," says the Portland, Greg.
Journal independent Democratic),
with the added query: us it the busi-
ness of the United States to loan
money for ornaments abroad when
there is a determined effort to obtain
a reduction in military establishments |
for the relief of the taxpayers of all |
countries and the peace of the |
world?" The Baltimore Sun dnde- |
pendent AYERS that "the simplifica- |
ton of our international relations, by |
pursuing the Hoover policy, is obvi- |
ous," while the Santa Barbara News |
Democratic) calls the |
Hoover suggestion "a move for |
peace" and asserts that there is no |
possible justification for the United |
States backing other nations in war,
with money any more than with men,"
One restriction as TO such policy
is recognized by the Manchester
Union independent Republican,, which |
points out that tany attempt on the
part of the American Government to
lay down rigid conditions governing
foreign investments would be both
and unwise." The Union
suggests that debtors would resort
to various subterfuges TO secure the
desired funds" and that America |
must avoid, If possible, creating the
abroad that she is disposed
10 take advantage of her present con.
dition to dictate to other peoples
what their internal policy shall be-"
The conclusion reached by this paper
IS that 1.-The situation can be controlled
by the private investor" The Chicago
Daily News independently states that
the United States has had to depend
on the intelligence and good will of
The bankers
"It is hardly to be believed" in the
Judgment of the Christian Science
Monitor independently, that Secretary
Hoover intended to prohibit absolutely
such loans at all times and under all
situations. Had such policy been in
'orce in 1917, the United States would
nave been debarred from giving to it's
allies that financial aid which was,
perhaps, the greatest contribution to !
he winning of the war. BtNMa posi-
oans made by private individuals to :
.oreign governments. purely for the )