The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-10-26
The HOOVer-LaVaI Plan

President Hoover and Premier Laval, apparently,
made more decisions than the vague official joint
statement indicates.
According to informed officials, the conference re-
suited in an agreement that German reparations
revision should come only through the Young plan
machinery, to be followed by a Hoover request to
congress to reconsider war debt reduction.
1t also was agreed that Laval would try to stop
French drains on the American gold supply. Finally,
no specific agreement was reached on
other than to go on with the plans for the Geneva
conference in February.
All of which looks as though Laval will take home
what he came to get. Hoover, apparently, has prom
ised not to take the initiative again in extending the
debt-reparation moratorium. When he did so last
summer France was angry.
Then France blocked the moratorium until she
got assurance that the Young plan would remain in
operation. The Young plan gives her some uncon-
ditional payments from Germany. AS long as the
Young plan operates she can call the tune-which is
much safer for her than to have Washington inter
ference.
There is no reason for Americans to resent this
French diplomatic victory. The machinery for dras-
tically reducing and postponing debts-reparations is
not important, so long as the result is accomplished.
The result can not be accomplished without French
cooperation.
II the hOOVeI-GdNdl agreement Will lldSJeu SuC
cooperation in this matter, which has been so long
lacking, that is a net gain. If France does not CO.
operate under the new plan then the other nations
can bring pressure on her again as they did last sum-
mer.
The reported gold agreement does not seem to
us important. We do not share Hoover's reported
fear for the American gold standard. Only a few
weeks ago Washington Officials properly we're fear
full that our disproportionate share of the worlds
gold was strangling us. A redistribution of the gold
supply correctly was said to be essential to world
trade and American prosperity.
While officials we're trying to find some way to
solve that hard problem, a few scaremongers in Paris
began selling the dollar short and thus turning the
flow Of gold from New York back to Europe. That
is ell to the good, the process could go much farther
and help both us and the rest of the world.
Our adequate gold supply is not in jeopardy. And
If it were we doubt that a Laval-Hoover agreement
would save it.
France and the United States should help make
is possible for Great Britain and other nations to
return to the gold standard without being constantly
at the mercy of Paris and New York bankers. IN
less some such plan can be worked out soon, our
two collaborating and trade-losng nations are 60
ing to suffer much more from Britains flight from
the gold standard than Britain herself.
It was too much to expect that Hoover could in
duce Laval to agree to definite arms reduction. Never
theless. there is no use blinking the fact that, with
out arms reduction and revision Of the unjust and
unavoidable Versailles treaty, there is not much
chance Of fundamental Improvement in the danger
GUS European situation. Borah was right in that.
And he was speaking for American public opinion.
Nothing that the United States, or any other ma
ton or nations, can do in the way of debt-repara-
lions reduction can stop Europes plunge toward
bankruptcy and war-unless France gives up her
military and political dictatorship over the rest of
Europe.
The worlds economic system will not function I'M
der that handicap. Altogether apart from the fact
that France is driving Germany in self-protection
toward the mirage offered by her fascist militarists.
Europe can not survive with France sitting on her
neck any more than Europe could have survived
German mastery.