Evening star., 1931-06-23
HOOVER PROPOSAL
MEETS W|THFAVOR
Business Men Are Quick to
Approve Presidents Debt
Holiday Plan.
BY JOHN F. SINCLAIR.

Special Dispatch to The S ar.
NEW YORK, June 23.-Europe be-
lieves America has now definitely set
her face toward her rescue. Myron G.
Taylor, chairman of the Finance Com
mittee of the United States Steel Cor
poration, who returned yesterday from
Europe, said that President Hoover's
suggestion for a moratorium is the
first great constructive move the
United States has made for the worlds
economic recovery, and should be fully
appreciated abroad" This expresses
the prevailing view among business
men.
The moratorium itself will not do
much to correct the difficulties. But
the significant thing is that all Europe,
with France possibly excepted, believes
it is the opening wedge, after which
many other steps can and will be un-
dertaken with Americas help.
British Response.
The British Parliament received Presi-
dent Hoover'S suggestion gladly. Pre-
mier Ramsay Macdonald believes that
a new day is about to dawn. David
Lloyd George, after congratulating the
President on this courageous step, said
that he Hoped that all war debts and
reparations would be entirely wiped
out. Such suggestion, coming from
a man who helped to create the huge
reparations, is frankness itself.
Perhaps the most candid OF all the
British statements issued was that OF
George Bernard Shaw. After saying
that he considered 'all war debts moth
ing but plumbers" Mr.. Shaw said:
1.-THE question is how much longer Is
the United States going to be able to
collect. OF course, it is very excel
lent thing to suspend payments Tor
year, but an offer might be made to
suspend payments for SO or 100 years
maybe forever 1t would give hope that
America might come to the rescue of
the world by giving money to Europe
to pay her debts"
The Macdonald government, as well
as the leaders of the opposition, STAN
ley Baldwin and David Lloyd George,
have agreed substantially to the mora
torium.
France Holds Key.
But France is the key to the situa-
ton. French officials and bankers were
in conference on the subject yesterday.
Will she, too, agree?
For every two dollars which France
has coming in reparationS from Ger
many, one dollar is passed on to the
UnlGcQ
keeps. President Hoover's proposal to
France is that France agree to reduce
her compensation not one dollar, but
two dollars.
But it is quite possible that France
will say to the United States:
I'VE are willing to reduce Germany's
obligation to the extent that you reduce
it to U.S. If you will excuse US from
paying the dollar to you, we will agree
to suspend such payment to us by Ger
many"
Higher Taxes Possible.
Again there are some who have been
considering the matter and have found
that a moratorium for one year from
July l means that the United States
will not receive the S254,000000 which
Europe was expected to pay into the
Federal Treasury. Hence new taxes
to offset this loss must be raised. So
it locks like more and higher taxes for
Americans
If the Progressives and the Demo-
Gratis have control of the next Con-
gress, which is not unlikely, a drive
will be made to increase taxes in the
higher brackets, not the lower ones.
Influential industrialiSts and bankers
must face the facts sooner or later
that the moratorium probably means
nlgQeT ldNSS 1OT JIlSlT COIpOIdILuAlo
and themselves in the next II months.
Still, the wide response which has
greeted the declaration of the President
is evidence that the world is sadly in
need of leadership of the kind that
will bring it out of the depression. Per-
haps after ALL the troubles of the world
are mental rather than financial.
Wheat Holdings.
There is still another high trump
card which the President can play, if
it becomes necessary.
The Farm Board has 200,000,000
bushels Of wheat on hand. 1t has an
4ounced that it is no longer buying
factor IN the market, andas private
traders are taking charge again.
But the traders are worried over the
disposition of this 200, 100000 bushels.
What they want is assurance that this
vast amount of wheat will not be
dumped Oil the market to lower prices
for this years crop.
In other words, they want the Presi-
dent to convert the Farm Board to the
proposition that none of this Govern
ment grain will be sold until the 1881
wheat crop is disposed of.
If such an announcement is ever
made, wheat prices, of course, would
move up, both in the United States and
abroad The "overhanging" surplus of
wheat is having a depressing effect on
this years prices.
Copyright, 1881, by North American News
paper Alliance, Inc.)