Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-05
MELLON DEFENDS
WAR DEBTS STAND
Secretary Spi''~s Revival of
Cancellation. Demand in
Talk to Bankers.
Continued From First Pase)


Congress of the International Chamber
of Commerce. now in session here.
The Secretary said he had no means
of knowing when or how we shall
emerge from the valley in which we
are now travelling" but he proposed as
en ultimate solution of the worlds
dificulties" the building up Of a higher
standard of living, especially in the I'M
developed consumer areas.
Terming the present situation a
"crisis" caused by the war and its alter
maths. Mr.. Mellon called upon the
financial leaders to be encouraged. He
could not forecast when normal times
would be resumed. but he said: Il do
know that, as In the past, the day will
come when we shall flnd ourselves on
a more solid economic foundation and
the onward march OF progress will be
resumed"
World trade must be built up he told
the bankers. One method Of doing this,
he suggested, was to build up higher a
standard of living to create in the un-
developed consumer areas, and through
out the world "a steadily increasing de-
mand for the goods and services which
Europe and America are prepared to
supply"
Conditions today" he said. ARE
neither so critical nor 50 unprecedented
as to Justify lack of faith in our ca
pacity to deal with them in our accus-
toned way"
Mr.. Mellon did not specifically men,
ton the recurrent suggestions that the
United States cancel the world war
debts owed this Government by Euro
pean powers, but he made plain at the
general situation. This Government
has consistently stood against such can
collation..
LAS one who looks at the situation
from the Government angle, but who
also shares with you the business point
of view" said Mr.. Mellon, may make
one suggestion? And that is, do not
lose sight of the fact that solutions
which may coenl to you ideal cannot
always be put into effect for reasons
which, am sure, are apparent to you.
"One is that in each country govern
ments must deal primarily with the
facts of their own case and are free to
act only within the bounds imposed by
national traditions, economic organiza-
ton and the limited understanding that
exists in every country Of other peoples
problems, and Of the extent to which
all of us are affected by conditions out
side of our own borders.
Notes Transition.
"In practically all countries we have
had telling prices, unemployment, de-
creased consumption, difficult problems
of government finance and, in some
countries, political revolutions" he said.
One must not underestimate the seri-
BUSINESS of the present situation. And
uof lnCa r.
spective, for we know that the world
is going through one of those transit
ton stages which come from tiEle to
time and entail drastic and far-reacns
ing economic establishments.
THE present crisis Is more severe
because it follows a war in which the
whole world was involved. The eco
nomic depression Is, in part, the price
we pay for war and must be reckontd
apparently as seemingly unavoidable.
4" do not believe in any quick or
spectacular remedies for the ills from
which the world is suffering, nor 90
I share the belief that there is any
thing fundamentally wrong with the
social system under which we have
achieved in this and other industrial
lied countries a degree Of economic
well-being unprecedented in the history
Of the world.
Conditions Worse Here.
Here in America cur problems seem
to us more acute perhaps than they
really are because they exist as the re-
suit Of vast, and at the same time
fairly recent, industrial development,
which has made necessary a change in
methods and outlook to which we have
not yet had time to become accustomed
Conditions today are neither so criti-
cal nor so unprecedented as to justify
a lack of faith in our capacity to deal
with them in our accustomed way.
mo one should be discouraged about
the ultimate outcome.
II have no means Of knowing when
or how we shall emerge from the valley
in which we are now travelling. But I
do know that, as in the past, the day
will come when we shah find ourselves
on a more solid economic foundation
and the onward march Of progress will
be resumed"