Evening star., 1932-12-20
Mr.. Hoover's Debt Proposals.

Mr.. Hoover's Debt Proposals.
Members of Congress are well within
the truth when they describe the spe.
cial message sent by President Hoover
Yesterday on the combined subjects OF
war debts, disarmament and world eco
ntmcs as one of the outstanding state
papers Of his administration. Its refer
ences to price levels, productive power
conslmptiye capacity, currency fiuciu'
ations, gold standards, trade barriers
and other politico-technical matters
naturally cannot be followed with COM
plete understanding by the average
citizen.
But the Presidents broad deductions
and specific recommendations are sc
sane and plain that neither in nor out
of Congress is there any ground for not
grasping or acting upon them. MIR
Hoover, with respect to the creation OF
a fact-fnding agency to deal with gen.
eral world economic chaos, informs
Congress that he would be happy II 1t
would itself set up such a body. II
Congress does not care to do so, the
President, in the exercise of his eXecu-
tive prerogative, purposes moving to
that end. It is q decision the wisdom
end urgency of which alike speak un-
answerably in its favor. Rome Is burn
ing, and Mr.. Hoover is opposed to fur
ther fddling.
The President sets forth with ele-
mentary obviou2ness that discussions
related to both debt questions and the
coming World Economic Conference
cannot be concluded during my ad-
rlinistraticn, vet the economic situa-
ton 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 a." Mr.. Hoover there
fore announces his intention Of seek
ing the cooperation of President-elect
Roosevelt in the organization of ma
chinery for advancement Of considera-
COn OF THESE pfopleiIS.
Early. though unofficial. intimations
from Albany seem to reflect a disin-
clination on Gov. RooSevelt's part to
join with President Hoover along the
proposed lines. Nor does the President
elect evincc any disposition to recede
from his previously expressed belief
that normal diplomatic channels, rath-
er than special representatives, supply
the preferable means Of tackling the
debts and all correlated problems. Mr.
Hoover takes direct issue-for the first
time-with his successor on this score.
Adequate and proper machinery for
dealing with these problems" the
President asserts, 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.
1t would be unfortunate in the high
est degree if a difference of opinion
over what is after all the relatively
minor matter Of method were to keep
Messrs. Hoover and Roosevelt apart on
these all-vital affairs. The Presidents
appeal for the cooperation of his sue
cessor is so reasonable that many OF
Gov. Roosevelt's admirers will be dis
appointed If he refuses it. In his own
interest, the incoming Chief Executive
would find it immeasurably helpful to
have had the closest possible insight
into issues as certain to plague his
administration from its outset as he
himself Is to assume two and a half
months hence the responsibilities which
the Nation has thrust upon him.
In his two thousand five hundred
words to Congress on the disordered
state of the World President Hoover
is strangely silent on one subject
namely, tariffs. He Is apparently at
tempting to be consistent with the en-
barge placed by the United States on
any discussions of tariffs at the World
Economic Conference, which Mr.. Hoo
VSI now llilhS 81 COiloplSuOuoiy "AeAA
debts and disarmament. But that con-
ference will not have swung into &C
ton very long before other countries
will trot out tariffs for consideration in
one form or another. Germany has
formally notified her intention of do
ing so.
President Hoover treasures Congress
that he will not entertain the thought
of debt cancellation" In the next
breath he suggests that if the Ameri-
can people are going to have to make
further sacrifices" in their debtors
favor, adjustment Of cash payments
must be compensated by definite bene-
fits in markets, and otherwise" Just
how the United States could ever eX-
pect Europe to confer these definite
benefits" for our trade without lower
ing European tariff barriers is difficult
to understand. And if Europe lowers
hers, how long will it be before she
asks the United States to take down
some of its own? Mr.. Hoover's fact
finders should also be fact-facerS, II
their explorations are to be thorough.
II &c rerhans q mistake to saw that