Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-05
BY WILLIAM HARD.

President Hoover ut this week end
faces the real beginning of his ultimate
efforts to hasten the restoration Of
prosperity in the United States. The
essence Of these efforts Is clearly des-
tined to be the release Of idle capital
into new enterprises and employments.
This Is true whether We look at for
eign affairs or at domestic.
The Presidents whole German move
Is developing toward providing a field
for fresh American investments In
Europe. If We and the French come
to an agreement regarding PREPARATIONS
and debts, our bankers will be found
extending long-term credits to Ger
many in order to prevent its financial
structure from again experiencing a
crisis Of disintegration. They will also
be found extending temporary credits
to various smaller European countries
temporarily disadvantaged by the Hoo
yer separations and debts moratorium.
4 ~
On the other hand. II we and the
French fail to arrive at an agreement
and II the moratorium plan-as q grand
total-collapses, then numerous parts
Of 1t will be achieved piecemeal and
the extensions of American credit TO
Europe will be just as great and prob
ably ultimately much greater.
This is for the following reasons
II France refuses to come to terms
with the United States the Germans
Will have achieved. anyway, their first
aim. That aim always was to have
ample justification in the eyes of the
world for exercising their legal treaty
right under the Young plan to post
pone the "conditional' part of their
separations payments. This justifica-
ton the obduracy Of France in Its
negotiations with the United States will
aoundantly give them. They will post
pone their conditional payments amid
almost universal world applause.
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That postponement. however. will
upset the financial arrangements upon
which numerous European powers have
relied. New financing will be needed
france will be both unwilling and I'M
able to furnish 1t. The United States
and Britain and Germany and Italy.
together with Germanys ex-allies,
Austria and Hungary and Bulgaria, will
De thrown into an alignment opposite
70 tnat OF France. The French align
ment. comprising France itself and
Poland and Czechoslovakia and Jugo-
slavia and Rumania, is held together
largely by French political finance.
Certain units in it are highly FESTIVE
under what they regard as excessive
French political domination. They con-
sent TO that domination only because
they need money and get it from
France. In circumstances of security
tney would shake that domination off
II tney could get their needed money
from other sources.
II ++
It will inevitably become the policy
OF the United States and Britain and
(YATn2nV 10 a.,
security and prosperity to Central and
Eastern Europe without France il
France decides to isolate itself from
the Hoover reconstruction program
The Great War will be completely over.
Inc partnership of the allied and
associated powers" will have come
wholly to an end. The line toward the
most OF Europe's future will run not
through London, Rome, Washington
ana Parl. but through Washington,
washington will lead in the realistic
economic sense, because the United
States will be the origin Of the financial
resources for the success of the new
alignment. American capital Ultimately.
ana across all transitory obstacles. will
now to the resuscitation of Central and
Eastern Europe for the sufficient COM
pellmg reason that the failure of the
worlds capitalism to alleviate the
mser1eS OF the peoples Of Central and
Eastern Europe would bring Com
munlsm westward to the Rhine and
imperil the prosperity Of capitalism
everywhere.
therefore, no matter whether the
peeSent doover debts and reparations
oner encounters French acceptance or
French rejection, it is the beeinnino
OF a new expanded era of EMPLOYMENT
OF American capital overseas. That is
of it. 'e
In domestic affairs the Presidents
mind Is known to turn toward MANY
devices for stimulating new activities
Dy capital now inadequately and un-
fruitfully employed. The President is
seen to be more interested in acceler-
ating the now of business than in build.
ing dams in 1t even to protect some of
the wheat farmers. His supposed cour-
age In offering help to Europe, while
almost the whole world approved, was
nothing in comparison with his actual
courage last week in sustaining the
wheat sales policies Of the Federal
Farm Board while the farmers of part
OF the wheat belt diSapproved.
Inc board continues its intention of
selling considerable amounts Of wheat
during the next IL months out of the
stores OF its Grain Sterilization Corpo-
ration. 1t concluded that q refusal to
sell would congest the storage facilities
and block the outlets of farmers In the
Middle and Far Northwest. It con-
WINGED the President of the soundness
OF that view. Sound or not, 1t pre-
vailed. The Farm Board will keep on
selling wheat in moderate but not negli-
gible quantities.
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This may be taken as the last gasp
Of any former supposed purpose by the