The Republican., 1931-06-25
A CRISIS AND A REMEDY

A serious international Crisis con-
fronts the world. The economic status
in Europe is most alarming. This, if
permitted to continue threatens to re-
suit in the absolute economic collapse
of Germany, which will directly affect
the United States.
Germany has said with much truth
that she cannot continue to meet the
reparations payments imposed and
adopted under the Young Plan, which
will result in the loss to Europe of a
very large source of revenue. If this
non-payment on the part of Germany
is permitted to materialize Europe,
as a consequence, will be unable to
meet her war debt payments owing to
the United States.
1t is now that Uncle Sam, called by
some of the European nations, the
"Shylock of the World" comes to the
rescue, as he did at the crisis of the
World War;.
President Hoover, to meet this
emergency, on Saturday of last week,
proposed an inter-governmental mora
atorium for period of one year on all
World War debts due this country,
provided that the war victors grant
Germany similar relief as to repara-
ton payments. Simplifed, this means
a postponement for one year from
July 1, 1881, payments by the allies
of debts due the United States and a
like postponement of reparation pay
ments to the allies by Germany. This
proposal, of course, is subject to con-
firmation by Congress, which cannot
be- had until the next regular session
in December unless an extraordinary
session is called. In the meantime
President Hoover is in communication
and conference with leading Demo-
cratic and Republican members.
The purpose of the proposal is to
give the Forthcoming year to the eco
nomic recovery of the world and aid
free action of the recuperative forces
already set in motion in the United
States. ~.
Stripped of all technical verbage,
the situation at this time is that the
credit stability of Europe is being
diminished at rapid rate, due to a
number of causes, among which are
lack of political and economic conf
dence, the abnormal flow of gold into
the United States and the natural un-
rest to the worldwide recession of
business, causing general depression
and unemployment. These are some
of the things that diminish the buying
power of foreign countries of our ex-
ports and to large extent the cause
of our continued unemployment and
low prices of farm products.
It is not SO much now question Of
overproduction as it is of undercon-
sumption. .
President Hoover makes it plain
that in no sense is he in favor of a
cancellation of war debts owing to
us, nor does he suggest any reduction
of the amount of the war debts. But
he brings to our attention the fact
that the basis of the settlement of
both debts and reparations was the
capacity of the debtor to pay unSer
normal conditions. But there is now
an abnormal situation.
1t is agreed among fnaneiers and
statesmen that the Hoover, or some
similar plan, must be adopted, and
that right soon. And while we hear
some discordant notes from the rapid
anti-administration individuals, the
real statesmen, irrespective of party
politics, casting aside sectional, inter-
racial and international differences
and animosities, forgetting the Presi-
Dental election of next year, are get
ting behind the plan to save the
world, not alone for democracy, but
for humanity.