Evening star., 1947-06-16

to Senator Bridges yesterday that
the greatest danger to all civiliza-
ton is for us to impair our economy
by drains which cripple our own
productivity.
He proposed that the United
States periodically estimate the
goods and services which we can
safely export and limit purchases OF
our commodities by limiting gifts
and loans" He said this country
should .'bluntly insist that recip-
lent nations cooperate to increase
their own productivity and to bring
peace for the world at large"
To prevent starvation abroad, he
said it may be necessary to cut down
consumption at home and to alter
some trade practices. But he in
sisted that the United States should
concentrate our limited resources in
the areas in which western civiliza-
ton can be preserved"
The Importance the Republican
leadership attaches to Mr.. Hoover's
views was demonstrated when Sena-
tor Taft told reporter:
II believe Mr.. Hoover has the
most comprehensive grasp Of our
foreign trade situation of any Amer
ican. The analysis which he makes
is a sound starting point for the de-
velopment of an overall foreign,
economic policy
On the Democratic side, Senator
George of Georgia said he agrees
with Mr.. Hoover that the United
States must not overtax its re-
sources if it is to keep the worlo
going economically.
Meanwhile, Senator Vandenberg's
suggestion for the formation of s
foreign program advisory commit
tee ran into its first open opposition
when Senator johnson, Democrat, oi
Colorado told reporters:
Senator Vandenberg's eagerness
in signing the big blank check or
the European WPA program is ar
eyebrow raiser He seems deter
mined to keep a full step ahead oi
Henry Wallace and Harold Stasser
in generosity with other peoples
money"
Cites Burden on Taxpayer.
In discussing the effect of the
huge foreign aid burden on Amer
lean economy, Mr.. Hoover wrote
Senator Bridges:
These gifts are an immediate
burden on the taxpayer. The goods
furnished under loans also must be
paid for Immediately while the re-
payment is deferred for years.
This has a bearing upon our tax
burdens. Including local govern
ment expenditures, they now amount
to about IS per cent OF our national
income. No free nation can continue
at that rate for long without i'm
pairing it's productivity.
Warns About Exports.
Discussing exports, he asserted,
lit must be recognized that we
cannot safely, through gifts and
loans, export more goods than our
surplus" He added:
The immediate result of export
ing more than surplus in our
free economy is to raise prices.
From that we get a dangerous spiral
of increased costs of living and
wages.
II would not contend that the
whole rise in living costs, with its
imitation spiral, has been due to our
large exports But it cannot be de-
MED that with fewer exports that
increase would not have been SC
great"
The letter estimated United States
exports at $13,500 100000 for the
1e45-46 fiscal year and $15,500, ,o00,-
600 for 1946-47. Imports were placed
at ,$7 200 100000 and s7700,000, ,00O
respectively for the two periods
Thus, Mr.. Hoover said, there was an
excess of almost $4,000, 100000 in
exports for the two years which was
met through gifts and loans.
Expects Rate to Continue.
He analyzed American commit
ments for the next II months and
concluded the United States would
have to export in that period at
about the same rate as in the past
two years, or between $4,000, ,000, 900
and SIG, 900 600, 900 annually, to pay
for probable imports and meet
promises for gifts and loans.
"Any study of our international bal