The Evening Star WEDNESDAY, DECEMBER 21, 1932. MR HOOVER’S PROPOSALS.

Evening Star, Issue 21291, 21 December 1932, Page 10

The Evening Star WEDNESDAY, DECEMBER 21, 1932. MR HOOVER’S PROPOSALS.

Ik some respects President Hoover’s Message to Congress is enlightening. It shows how the slow but irresistible pressure of world forces is having its effect in bringing realisation to the American people that something must be done to relieve the present intolerable conditions. Mr Hoover’s statement, it is true, docs hot carry the actual position much further, but the comments of the leading journals in the United States, are straws indicating the direction of the wind. They generally approve of tho President’s declaration, and endorse what ho contends—that there is necessity for dealing not only with war debts, but with all international economic difficulties. Matters have-been greatly complicated by the American elections, tho defeat of the Hoover Administration, and the fact that Mr Roosevelt does not take office till March 4. In the meantime Mr Hoover is in a most invidious position. He feels bound to endeavour to take action in the present crisis, yet be is powerless to do anything effective, seeing that a majority of Congress is hostile to his party. In a suggestion to set up machinery to consider the debt, economic, and disarmament questions, he has invited the cooperation of the President-elect, but Mr Roosevelt remains coldly aloof, evidently being prepared to accept the full responsibility after his inauguration on March 4. .It lias been alleged against Mr Roosevelt that he is a political opportunist, and that even in his most expansive mood ho is extremely

cautious and non-committal. The cable messages to-day indicate that the Democrats have no intention of walking with Mr Hoover. This does not necessarily mean that there is any fundamental difference in their views on war debts from those of the Republicans. It is merely an attitude that is consistent with the political practices in most countries.

Mr Hoover’s proposal docs not suggest a prospect of immediate relief. What counts is his confession that the position is desperate, and that steps must be taken to find a remedy. He reiterated his views against cancellation or reduction without adequate compensation, but as a London journal observes he has shown in this Message, as in the previous one, that he has been completely cured of the delusion that his country is able to stand on its own feet in happy detachment from the troubles of the rest of the world. This point was put very clearly in an economic bulletin issued by the Chase National Bank of New York, which said: “We continually meet the question of why we should try to restore England and Germany and Europe instead of trying to restore the various shattered elements in our own economic life. Why should we concern ourselves about England and Germany when w© have so many unemployed in the United States? The answer is that we must concern ourselves with England and Germany for the sake of the unemployed in the United States. We must help Europe in order to help Latin America, in order to help Asia, and, above all, in order to help ourselves. We are part of a world economy, and we cannot make headway alone. And we know it now.” That is the logic of the position. Mr Hoover covers many of the causes and effects of the depression that are generally recognised, such as the fall in price levels, the instability and depreciation of currencies and foreign exchange, and other subjects. In this connection there is a note of complaint, which is rather illogical, in his remark that the “ depreciation of foreign countries lowers the cost of production abroad compared with our costs, thus undermining the effects of our protective tariffs.” Naturally, too, he considers that tho gold standard is still tho only practicable basis for international settlements and monetary stability so far as the more advanced industrial nations are concerned. The significance of Mr Hoover’s Message is that the whole question of war debts is now opened up for discussion whidh must inevitably end in adjustment when the slow-moving American public opinion is brought to see the absurdity of the present position. Mr W. M. Hughes, a shrewd and experienced observer of world politics and world conditions, considers that tho United States will be compelled to review its position. Ho even says that cancellation of war debts is inevitable. Many of the world’s leading publicists and economists are agreed that they hold the world in chains, and that there can .be no substantial economic relief until drastic readjustment is made.