The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-10-26
HOOVER, LAVAL
Join IN BATTLE
ON DEPRESSION
Definite Program Is Drafted
to Help World Out of
Slough of DeSpOnd.
DEBT SLASH EXPECTED
Central Europe Given New
Hope as Result of
Conferences.
BY RAY TUCKER
Times STAFF Correspondent


WASHINGTON. Oct. ga def
mite program for attacking the
worldwide depression has been
formulated by President Hoover and
Pl ~'nier Pierre Laval of France, in
their two-day conversations at the
White House..
Although a formal communique
issued by the two statesmen before
Laval left at midnight for New
York merely limited at a joint move
to readjust intergovernmental debts
and preserve the gold standard, it
was ascertained in official quarters
that the following specific steps are
contemplated:
l. A denomination of Germany's
capacity to pay r%eparations, under
a commission provided for in the
Young plan, whenever Germany
asks this remedy, and, if necessary,
a compensatory scaling down of
Euorpe's debts to the United States.
Germany is expected to act soon.
2. Defense of the gold standard
through termination of an unofficial
French attack on the dollar: use
of $3.50, 900 900 French deposits in
New York to purchase acceptances
and prevent further Withdrawals to
France, and probable increase of
the rediscount rate at the New
York federal reserve bank.
3. A movement under the leader
ship of France, and wholly without
American participation, to straighten
out the political problems which
cause unrest in central Europe, and
thereby contribute to economic in
stability everywhere.
4. A hope, somewhat slight as yet,
that the Geneva disarmament con-
ference next February will organize
the nations on a firm foundation of
peace"
Both Are Pleased
Both Hoover and Laval, formally
and informally, expressed happiness
at the frank and cordial spirit in
which the discussions had been held.
Both predicted that their compre-
hensive exploration of mutual
problems, even where no definite
concord was possible, would prove
helpful in future relations between
the two countries.
To understand each others mis-
understandings, it was pointed out,
was a great gain in itself.
Both President and premier have
reason to be-and obviously are
g oficEnI ITYIo~ Torro1 aIs--L-
Smiths Empire State skyscraper in
Manhattan today, preparatory to
sailing for home tonight, he will
do so in a happier frame of mind
than he was on his arrival. For
the short, swarthy, cigaret-puffing
peasant from Auvergne returns to
play a great role in what may be a
more equitable settlement of prob
lens arising out of the World war,
Both Make Concessions
Hoover, on his side, obtained
French assent to steps to stabilize
central Europe and furnish c o
nomic relief for Germany. Ever
since he declared for a one-year
moratorium, the President has felt
there could be no real improvement
in conditions until Germany was
given a helping hand.
Lavals sympathetic attitude in
this respect, as well as Hoover's
promise to submit a plan for down
ward revision of debts, if found
necessary, made the agreement pos
sible.
There was comparatively little
talk Of a security pact, although
Laval felt it necessary to submit the
formal French position on this ques-
ton. He soon learned, both from
Senator Borah and Hoover, that
American participation was out Of
the question.
Hoover discovered that Francs
opposed the idea of a longer mora
forum on the ground that its
very vagueness was injurious to
economic recovery,
Agreement Is Deferred
Although no solution of problems
preventing real disarmament could
be achieved, both Hoover and Laval
explored this field COMPREHENSIVE.
They found it necessary, however,
to defer any actual agreemnt.
They found themselves in agree
ment on the fact that Germany
must have relief during the de-
preston.
Laval, however, would not bulge
from his position that any financial
assistance must be given under ma
chinery set up in the Young plan.
He chung 'tenaciously' to this point.
because, regardless of Germany's
condition, the Young plan requires
her to pay certain unconditional
annuities" to France, whereas even
these might possibly be discontinued
if a settlement we're reached by an
outside conference.
This was LavaPs position during
the moratorium conferences last
summer.