Evening star., 1931-12-12
The Presidents Program,

In three separate messages to the
| Congress President Hoover has set forth
the administration program for meet
ing the economic conditions which con-
front this country, internally and abroad
| Yesterday in a statement to the press
the President called upon the American
! people and the Congress to support his
! program for economic recovery, stress
ing the fact that the major steps the
| country must take are domestic.
The Presidents statement comes at a
time when his critics have been
/ trying to make it appear that the only
care Of the administration is for the
troubles Of European nations, and par
I ticularly those nations which owe the
United States debts growing out Of the
| World War Nothing is further from
| the fact. Nor can cheap claptrap make
1t so. If the administrations detractors
in Congress would bring themselves
from flights Of oratory to the actual
work of legislating for the recovery of
| prosperity, the country would be bet
ter of. Probably this kind Of oratory was
bound to come when Congress assem-
bled, but the hope of the country was
that it might possibly be omitted from
the schedule and actual work begun
promptly.
Mr. Hoover lists twelve major proposals
! in his recommendations for domestic
recovery, covering a wide field of effort
and improvement in the machinery,
both business and government. In
cluded are recommendations for the
| creation Of a reconstruction finance
! corporation to furnish necessary credit
not obtainable otherwise; for the
strengthening Of the Federal Land Bank
| System; for aid to the destitute and
unemployed through voluntary contri-
buttons; for assistance to the railroads;
! for the revision of the banking laws
and the enlargement of the discount
facilities under the Federal Reserve Sys-
TEN, with proper safeguards; for the
NtA - hASbA 4bNb4Oli ~ NCIDSlLOiS VI luLlQS
from closed banks; for the safeguard
ing and support of the banks through
the National Credit Corporation, a half
billion dollar agency already estab-
lished, and for the maintenance of the
public finance on a sound basis. in
cluding drastic economy and a tenn
porary increase of Federal taxation.
The Congress should proceed to dis
cuss this program, which is entirely
non-partisan, and to make it effective
with such amendments as careful con-
sideration may find necessary. The
critics Of the administration, however.
have so far given themselves over to
assaults on the tax increase plan ad-
yanced with proposal by the President
that there be recreated the World War
Foreign Debt Commission to deal with
! any problems that may arise over the
inability Of the debtor nations to meet
their payments to this country after the
conclusion Of the Hoover one-year
moratorium of intergovernmental debts
The recommendation that the War
Debt Commission be re-established has
been interpreted by Mr.. Hoover's op-
ponents as a step toward the cancella-
tion Of the debts. A perusal of the Pres
ident's message, however, shows that
this is an entirely incorrect assumption.
The President reiterates his opposition
to debt cancellation. But he warns the
Congress that there is not the slightest
use in playing the ostrich with its head
in the sand; that some Of the debtor
nations may not be able to pay, and
that this country should be prepared to
go into the matter in businesslike way
For that work he proposes the setting
up again Of the War Debt Commission
Secretary Mellon of the Treasury De-
partment has strongly urged the Con-
gress to set up this machinery whereby
an inquiry into the foreign debt situa-
ton may be conducted. Mr.. Mellon
and the President both have stressed
the point that the United States has
considered the capacity of the debtor
raticns to pay in making the debt set
Elements. They see no reason why this
principle should be abandoned now.
Nor should it. In his defense Of the
Presidents proposal to re-examine the
debts of Europe Mr.. Mellon has called
attention to the fact that the change
during the last year in the financial
situation Of Great Britain, the best Gus
toner Of the United States, as we'll as
one cf its largest debtors, has added
greatly to the burden imposed by the
debt payments. Because of the de-
cline Of the pound sterling, Mr.. Mel
Ion has figured, the obligation of Great
Britain has increased forty-seven per
cent.
1t is the part of common sense frank
ly to face this situation abroad. A
thorough inquiry into the debt prob
lem, conducted by a commission set
up by law, may become vitally neces-
sary.