The Bismarck tribune., 1931-12-10
TEXT OF MESSAGE
PRESENTS VIEWS
ON WORLD AFFAIRS
Points to Support Of individuals
in Congress For .
Moratorium
DEBT DELAY IS CONDITIONAL
Says He Sought to Free U. s.
Recuperative Forces From
Foreign influences

Foreign influences
Washington, Dec. lo.-R-1he text
of President Hoover's message to con-
gress asking ratification Of his pro-
posal for one-year moratorium on
tnter-governmental debts follows In
part:
with the support of q large ma
jority Of the individual members Of
the senate and house. I informed the
governments concerned last June
that
THE American government pro-
poses the postponement, during one
year, Of all payments on intergovern-
mental debts, reparations, and relief
debts. both principal and interest; OF
course not including obligations Of
governments held by private parties.
Subject to confirmation by con-
gress, the American government will
postpone all payments upon the debts
of foreign governments to the Amer
ican government payable during the
fiscal year beginning July next, con-
ditional on like poStponement for
one year Of all payments on inter-
governmental debts owing the impor-
.tant creditor powers. -.
In making this proposal, also
publicly stated:
1.-The purpose Of this action Is to
give the forthcoming year to the eco
nomic recovery Of the world and to
help free the recuperative forces al
ready in motion In the United States
from retarding influences from
abroad.
Europe Hardest Hit
"The worldwide depression has at
fected the countries Of Europe more
severely than our own. Some OF these
countries are feeling to- q serious ex-
tent the drain Of this depression On
national economy The fabric ofath-
tergovernmental debts, supportahae In
normal times, weighs heavily In thu
midst Of this depression.
Prom a variety Of causes arising
out OF the depression, such as the fall
in the price Of foreign commodities
and the lack OF confidence in eco
nomic and political stability abroad.
there is an abnormal movement OF
gold into the United States which Is
lowering the credit stability Of many
foreign countries. These and the
other difficulties abroad diminish
buying power for our exports and In
a measure are the cause Of our con-
tinued unemployment and continued
lower prices to our farmers.
"Wise and timely action should
contribute to relieve the pressure Of
these adverse forces in foreign coun-
tries and should assist In the, restab-
lishment Of confidence, thus forward
ing political peace and economic sta
bility in the world.
Authority Of the president to deal
with this problem Is limited, as
this action must be supported by the
congress. It has been assured the
cordial support Of leading members
of both parties in the senate and the
house.
"The essence Of this proposition Is
to give time to permit debtor govern
ments to recover their national pros
perity. I am suggesting to the Amer
ican people that they be wise credit
ors in their own interest and be good
neighbors.
States Reparation Views
IT wish to take this occasion also to
frankly state my views upon our re-
lations to German reparationS and
the debts owed to US by the allied
governments of Europe. Our govern
ment has not been q party to. or ex-
erted any voice in determination OF,
reparation obligations. We purposely
did not participate In either general
reparations or the division Of colonies
or property.
"The repayment Of debts due to us
from the allies for the advance for
war and reconstruction were settled
upon a basis not contingent upon
German reparations or related there
to. Therefore. reparations IS neces-
sarily wholly a European problem
with which we have no relation.
II do not approve in any remote
sense Of the cancellation Of the debts
to us. World confidence would not
be enhanced by such action. None OF
our debtor nations have ever suggest
ed it. But as the basis Of the settle
ment Of these debts was the capacity
under normal conditions Of the debtor
to pay. we should be consistent with
our own policies and principles II We
take into account the abnormal stu
alton now existing in the world.
Wants No Shylock Policy
"1 am sures the American people
have no desire to attempt to extract
any sum beyond the capacity Of any
debtor to pay. and 1t Is our view that
broad vision requires that our govern
ment should recognize the situation
as it exists.
This course Of action Is entirely
consistent with the policy which We
have hitherto pursued. We are not
involved In the discussion OF strictly
European problems. Of which the pay
ment Of German reparations Is one.
It represents our willingness to make
q contribution to the early restoration
of world prosperity In which our own
people have 80 deep an interest.
"I wish further to add that while
this action has no bearing on the
conference for limitation Of land
armaments to be held next February.
inasmuch as the burden Of compeu-
tive armaments has contributed TO
bring about this depression, we trust
Continued On page nine)