Evening star., 1932-12-19
Text of Hoover Message !
President Will Seek Cooperation of Roosevelt in
Dealing With World Economic Problems, .
He Informs Congress.

Clear 10 make payments uu0cf t1eSe
agreements for the future. Thus our
Government and our people are con-
fronted with the realities Of q sttua-
ton In connection with the debts not
heretofore contemplated.
Against Cancellation.
It Is not necessary for me at this time
to enter upon the subject Of the origins
of these debts, the sacrifices already
made by the American people, the re-
spective capacities Of other govern
ments to pay, or TO answer the argu-
ments put forward which look toward
cancellation Of these obligations. I may,
however, point out that except In one
country the taxation required for the
payments upon the debts owing to our
Government does not exceed one quar-
ter OF the amounts now being imposed
to support their military establishments.
As their maintained armaments call for
defensive forces beyond those before the
war. the American people naturally feel
that cancellation of these debts would
give us no relief from arms, but only
free large sums for further military
preparations abroad Further. It Il not
amiss to note that the conte ntiOn that
payment OF these debts Is confined to
direct shipment Of goods or payment In
gold Is not proper representation. since
In normal times triangular trade Is .
very large factor in world exchanges.
nor Is any presentation Of the trade
balance situation complete without
taking into account services, as. for in
stance. American tourist expenditure
al tyT mt to, al
0l lnt dtDtOr countries exceed the
amount of payments I may also men
tion that our country made double the
total sacrifice of any other nation in
bringing about the moratorium which
served to prevent the collapse of many
nations Of Europe with its reactions
upon the world. This act Of good will
on our part must not now be made
demanding still larger sacrifices.
My views are we'll known. will not
entertain the thought OF cancellation
believe that whatever further sacri-
fices the American people might make
by way OF adjustment OF cash payments
must be compensated by definite bene-
hts In markets and otherwise.
In any event In protection to our own
vital interests. as good neighbors and
III accord with our traditional duty as
wise and fair creditors whether to in
dlviduals or nations. We must honor the
request for discussion OF these questions
BY nations who have sought to maintain
their obligations to us.
The decision heretofore reached to
exclude debt questions from the coming
World Economic Conference or from
any collective conference with our
debtors is wise as these are obligations
subject only to discussion with fndi-
vidual nations and should not form
part Of collective discussion or OF
discussion among many nations not af-
lected, yet 1t seems clear that the sue
ceSSful outcome Of the Economic Con-
ference would be greatly furthered II
the debt problem were explored in ad-
vance, even though final agreement
might we'll be contingent on the salts
factory solution of economic and arma-
ment questions in which our country
has direct interest.
Sets Forth Conclusions.
Thus from this present complex
situation certain definite conclusions
are unavoidable
l.. A number Of the most serious
problems have now arisen and we are
bound to recognize and deal with them.
2. 1t Is OF great importance that
preparatory action should be taken a.
once otherwise time will be lost while
destructive forces are continuing
against our agriculture. employment
3. Adequate and proper machinery
for dealing with them must be created.
1t Is clear that ordinary diplomatic
agencies and facilities are not suitable
for the conduct of negotiations which
can best be carried on across the table
by specially qualified representatives.
I. AS l have pointed out. the discus
sion Of debts Is necessarily connected
with the solution of major problems at
the World Economic Conference and
the Arms Conference. The ideal way
would. therefore. seem to be that some
2f our representatives In these matters
should be selected at once who can per-
form both these functions of preparing
for the World Economic Conference,
and should exchange views upon the
debt questions with certain nations a.
once and to advise upon the course to
be pursued as to others. 1t would be-
an advantage for some Of them to be
associated with the Aims Conference
Some part of the delegates appointed
for this purpose could we'll be selected
from the members of the Congress On
the side Of the executive this is no
derrogation OF either executive authority
or independence; on the side of the
Congress 1t Is no commitment, but pre-
vides for the subsequent presentation
to the Congress of the deliberations
intricacies, reasoning and facts upon
which recommendations have been
based and Is Of first importance in en-
a m uiV odn to
consideration to such conclusions.
5. Discussions IN respect to both debt
questions and the World Economic Con-
ference cannot be concluded during my
administration. yet the economic situa-
tion in the world necessitates the pre-
liminary work essential to its success;
The undertaking Of these preliminary
questions should not be delayed until
after March 4.
I propose therefore. to seek the CO.
operation of President-elect Roosevelt
in the organization of machinery for
advancement Of consideration Of these
problems.
A year ago requested that the Con-
gress should authorize the creation Of
Debt Commission to deal with Sit
uations which were bound to arise. The
Congress did not consider this wise. In
the situation as it has developed it
appears necessary for the Executive to
proceed. Obviously. any conclusions
would be subject to approval by the
Congress.
On the other hand. should the Con-
gress prefer to authorize by legislative
enactment a commission set up along
the lines above indicated 1t would meet
my hearty approval.
had occasion recently In connection
with these grave problems to lay down
certain basic principles:
If our civilization Is to be perpetu-
ated. the great causes of world peace,
world disarmament and world recovery
must prevail. They cannot preva'- until
path to their attainment is built upon
honest friendship. mutual confidence
and proper cooperation among the ma