The Washington times., 1931-05-05
PRESIDENTS
WARNINGS
UNHEEDED
Business Conference Dele
gates Open Controversial Is
sue Despite Hoover Remarks
Continued From Page y

WkI1tC Will don Vic NOAA6AOc w
recommend or even arrange a
world conference to negotiate an
agreement for stabilizing the sill
yer market. The Chinese pointed
out that decline in silver prices
had ruined the Chinese, Indian,
and other markets where silver
standards are maintained.
PireIli Warns U. s.
The address of Pirelli was the
highHght of the morning session.
Looked upon as the spokesman
for Mussolini, he began with lib
eral praise for American business
men. He marveled at the prog
ress made by American industry
in the last century, but warned
that in the last three years the
decline in Americas industrial
output was far more rapid than
in European nations. He de-
clared:
"Tn 1880, foreign trade values
declined for all countries. But
the shrinkage was less marked
in the leading European cOun-
tries than in the United States"
This led him to his appeal for a
revision of war debts and to a
condemnation of American tariff
barriers. He said:
81 do not know what I'M
pOrtance should be attached to
the argument that interallied
debts represent only a small
percentage of the value Of am.
erican production, or Of the
trade balance, of the American
balance or payments, and that
their effect on the American
economic situation therefore is
incOnsiderate. However, this
may be, they undoubtedly exer-
else a very notable influence on
the economic situation of
Europe, and more especially Of
certain European countries.
Problem Is Of Concern
"On this account, If on no
other, the problem Is one OF
concern to the United States.
For if our studies have shown
the importance of the European
market to American economy,
then the question if and when
the whole matter (debt settle
mentS) should be recOnSidered
either in the light of the re-
valuation of gold, or Of the
present world crisis, or other
wise, is one of concern not
only for the debtor but also for
the credit0r-that is, for the
American farmer, the American
wage Garner, the American buSi-
nessman, and the American in
veStOr.
Turning to the tariff, he said:
"The United States are more
important to Europe as a
source of supplies than as an
export market. On the other
hand, Europe is more import
ant to America as IN export
market than as q source OF
supplies. Under these cOndi-
tiOns, is the present level OF
protection still so essential to
American industry? Would
not the present outflow Of man.
ufactures be increased If a
corresponding inflow Of inn
ports were to raise foreign pur.
chasing power?
hnR that
the percentage Of finished manu-
,factures exported from the
United States to Europe has
risen from 1877 per cent of
total exports to Europe in 1910
to 1914, to 3S.5 per cent in
1929, the importance of the
European market to the United
States is readily appreciated"
Demands Cooperation
In conclusion he demanded
world cooperation in fighting
depression.
Anderson, the British financier,
spoke much along the same line
He linked the tariff and war
debt problems in this fashion:
Regardless of the fact that
we have great factories under
employed and millions of men
unemployed, those countries Of
low wage pertinaciously insist
that to produce does not help
them in their distress, because
they must sell and we must
buy. Moreover, they have in.
Cured international debts, and
they insist, that, if they are
able to pay interest or princi.
pal, we must buy their goods,
and if we want them to buy
our goods, we must buy enough
to balance the service of our
loans.
''WOuId it perhaps be better
to cancel international debts
of political origin? Great
Britain as the largest war
creditor cancelled a great sur
plus Of debts owing to her and
the debtor nations would vote
for an extension Of this policy,
but the creditor finds it hard
to accept as impartial the ad
vice of the debtor to forgive
him what he owes.
''To cancel these interna-
tiOnal debts would not Of itself
cure the worlds complaint,
though the settlement of war
debts seriously aggravateS the
worlds troubles in these hard
times"