The Waterbury Democrat., 1932-09-03
SCENT G0RMLEY OPPOSITION, BOOM WHALEN
POWDERS HOOVER PLAN
 ON WAR DEBTS
Hint in Acceptance Speech Causes Much
 Figuring
fBy HERBERT MOORE

United Press Stan Correspondent
 London-Presiden Hoover's hint that war debt payments might be reduced in exchange for trade ad- vantages shattered Europe's hope of getting something for nothing and left the war debtor countries with no other alternative except to come forward with concrete offers or default.
 Reaction to Hoover's acceptance speech has been slow here and elswhere on the continent. This was not because Hoover's mean ing went over anybody's head, but because none of the governments had any concrete proposals, either formulated or tucked away in the back of their skulls.
 Outright Cancellation.
 For ten years financiers, econ omists and politicians on this side of the Atlantic have been clamor- ing for outright cancellation. or sweeping reductions but nobody drew up any definite proposals. certainly nothing to resemble that now hinted by Hoover.
 All the clamor was based on the idea that the U. s. should give re- lief to those who fought with her flor democracy's sake," simply because it was the moral thing to do, she being very rich, they being very poor.
 At first, Europe's case for can- cellation or revision, was based on moral grounds. The next stage was that of capacity to pay" but this very recently has passed away for the obvious reason that Britain has proudly proclaimed her re- covedy from the autumn crisis of 1881 and France has accumulated d one-third of the worlds gold.
 Now, as a result of four little paragraphs contained in Hoover's speech, Britain and the other war debtor countries appear to be about convinced that cancellation is out of the question; that reduce ton can only be had in exchange for trade advantages. Because no one ever thought about 1t in ex- actly that way, opinion was slow to react.
 Statesmen Ponder.
 But while statesmen ponder waiting for the U. S. presidential election to pass experts are be- ginning to approach the meaning of Hoover's hint in terms of ac- tualities. Their first reaction is frankly pessimistic.
 How, they ask, at first glance, can Britain give U. s. trade spe- cial advantage at the expense of the Dominions? Certain American manufactured products could be L. Ia n fitfnc wit hnnt detriment to the dominions, but 1t might not satisfy Hoover or his successor.
 Everything will depend on what kind of "yardstick" the U. S. will invent to measure the amount of reduction she will give for a cer- tain amount of increased trade each year. Opinion here is that nothing less than 50 per cent reduction would help Europe to recover.
 Maximum Amount.
 Assuming 50 per cent to be the maximum amount the U. S. would be willing to reduce any annual war debt payment, how much would she ask in trade advantage? Fifty per cent? If so, 1t is feared by some exjerts that Britain might not be able to enter into such an arrangement because in her case it would mean she would have to absorb about $S0.000,000 more American good than she normally buys.
 It is felt that France and Italy may be able to absorb 8 great deal more U. s. trade since neither has an Empire Trade Problem" to satisfy first before entering into foreign arrangements. But for Britain, the Dominions come first and after them there is Argentina and Denmark who will be de- reciprocal arrangements.
 Because of this, unofficial Brit ish opinion tends to the belief that Hoover's hint, while 1t has not yet created dilemma, has served to make the war debt ques- tion even more difficult.