The Washington times., 1931-07-28
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HARASS|NG
South American Situation
Develops Peril as Europe
Is Eased by Moratorium
By GEORGE r. HOLMES

By GEORGE r. HOLMES
President Hoover returned to
his desk today from a rest on
the Rapidan to confront new
complexities.
When Congress adjourned
March 4, Mr.. Hoover heaved a
sigh and made it known he would
not call a special session. He
said, in effect, the country needed
a rest from Congress. he needed
q rest. and in the interim, free
from parliamentary oratory and
agitation, probably much progress
could be made toward recovery.
Problems Pile Up
But almost the reverse has been
true. Mr.. Hoover has labOred
longer hours and has been con.
frOnted with more vexing Situa.
tiOnS since Congress shut up shop
than before.
The European situation. boiled
over and was brought back to
the simmering stage only by the
heroic action of q general mora
torium on inter.government debts,
to accomplish which it was neceS-
sary for the two ranking officers
of the Cabinet to participate in
the first European economic con-
ference the United States has
engaged IN since Versailles.
Chile in Spotlight
For the time being, the Euro
pean situation is more or less
quieScent, but the difficulties will
again present themselves as the
moratorium approaches its end.
As a cause for immediate con.
cern, the South American Situa-
tion has moved into the spotlight.
A new revolution in Chile, with
the overthrow Of the Ibanez gov
ernment, was being watched with
undiSguised concern. for it is rec
ognized here that Chilean unrest
is but a part of the general pat
tern of conditions in all the South
ALIlCIlCaO republics.
In the past 10 months, every
major country in South America
has suffered changes of govern.
ment, some of them violent, and
all of them explosive.
Big U. S. Investments
American investments in South
America are heavy. In Chile alone
they amount to some $700, ,O00, 900,
or more than the American short
term credits in Germany.
Vague rumOrS of a general mora
tOrium in South America continue
here. with little tangible upon
which to base them. But all of
the southern republics are suffer.
ing severely from the general de-
preston. The Administration re-
CARDS the situation with anxious
eyes.
Even more important is the
situation that confronts Mr.
Hoover at home.
Wage Cuts Disturbing
There is now apparent a wide
spread movement toward reduc-
ton of wages and salaries. Ex-
ecutive and white collar salaries
already have been reduced on
something approaching ma
tional scale.
Union labor wages have thus
far managed to escape fairly gen
orally. but fear that the end of
the effort to maintain the old
levels is close at hand is appar-
ent in Administration quarters,
The outcome Of the directors
meeting of the United States
Steel Corporation today was be-
ing awaited anXiously. Steel is
the bellwether of the industrial
flock, and adverse action on
wages by steel unquestionably, it
Is felt here, would be followed by
industry generally. Heads Of the
steel industry have been impor-
tuned by Administration ennis
saries not to lower wages.
The farm situation has become
increasingly serious as the har-
vest has advanced. Unrest and
revolution abroad, revolt in the
agricultural region at home, and
now the menace Of wage defla-
ton in industry make this the
summer Of President Hoover's dis
content.