Evening star., 1931-06-21
Text, of Hoover
Debt Statement
CONTINUED From First Page.l }

Prom q variety of causes arising out
of the depression, such as the IAN n
! the price of foreign commodities and
the IacE of confidence in economic and
political stability abroad there is an
| abnormal movement of gold into the
| United States which Is lowering the
credit stability of many foreign coun-
tries. These and the other difnculties
abroad diminish buying power for our
exports and in a measure are the cause
of our continued unemployment ana
continued lower prices to our farmers.
Support From Both Parties.
wise and timely action should con-
! tribute to relieve the pressure OF these
adverse forces in foreign countries and
should assist in the re-establishment OF
confidence, thus forwarding political
peace and economic stability in the
world
Authority of the President to deal
with this problem Is limited as this
action must be supported by the Con-
gresS. It has been assured the cordial
support of leading members Of both
parties in the Senate and the House.
The essence of this proposition Is to
to recover their national prosperity. I
am suggesting to the American people
that they be wise creditors in their own
interest and be. good neighbors.
II wish to take this occasion also to
frankly state my views upon our rela-
tionS to German reparationS and the
debts owed to us by the allied govern
ments of Europe. Our Government has
not been party to or exerted any voice
in determination of reparation obliga-
tiors. We purpoSely did not participate
in either general reparations or the
division of colonies or property. The
allies for the Advance for war and re-
construction were settled upon a basis
not contingent upon German repara-
tionS. or related thereto. Therefore,
feparations is necessarily wholly a
European problem with which we have
no relation.
Against Debt Cancellation.
IT do not approve in any remote sense
of the cancellation of the debts to us.
World confidence would not be en-
debtor nations has ever suggested it.
But as the basis of the settlement of
these debts was the capacity under
normal condition of the debtor to pay,
we should be consistent with our own
policies and principles If we take into
account the abnormal situation now ex-
isting in the world. I am sure the
American people have no desire to at
tempt to extract any sum beyond the
capacity of any debtor to pay and it is
our view that broad vision requires that
our Government should recognize the
situation as it exists.
This course Of action is entirely con-
siStent with the policy which we have
hitherto pursued We are not involved
in the discussion of strictly European
problems, of which the payment of
German reparationS is one. 1t repre-
sents our willingness to make contri-
button to the early restoration of world
prosperity in which our own people
have so deep an interest.
Il wish further to add that while
this action has no bearing on the Con-
ference for Limitation of Land Arma-
mentS, to be held next February, mas
much as the burden of competitive
armaments has contributed to bring
about this depression, we trust that by
this evidence of our desire to assist we
shall have contributed to the good will
which is so necessary in the solution Of
this major question"