The Daily News THURSDAY, DECEMBER 22, 1932.

Taranaki Daily News, 22 December 1932, Page 4

The Daily News

THURSDAY, DECEMBER 22, 1932.

OFFICES: NEW PLYMOUTH, Currie Street. STRATFORD, Broadway. HAWERA, High Street.

BREAKING VICIOUS CYCLES If it is true that his message to Congress on Monday represents the final word of the retiring President of the United States he will have little reason to regret its tone or substance. The message contained a masterly review of the attitude and action hitherto taken by the United States in regard to war debts. It admits without bitterness that and the Administration did not see eye to eye, and it leaves with Congress the responsibility of accepting or declining the suggestions which appear to Mr. Hoover and his . colleagues the only way to “break the vicious cycles” which are preventing world-wide economic recovery. The President does not in any way recede from his former attitude in regard to war debts, namely, that there should be no cancellation or reduction of them by the United States without compensation in the shape of reduced expenditure upon armaments and trading concessions. Mr. Hoover’s proposal is to set up a non-politi-cal commission to inquire into the question of war debts and other economic difficulties in which disarmament is included. If Congress does not support his action in setting up such a commission future policy must be left to the incoming President and. Administration; in other words, the whole question must remain in abeyance until next March. In any case it is obvious that the work of such a commission could not be completed during the few remaining weeks of Mr. Hoover’s term of office, and it is this factor which necessitates the non-par-tisan nature of the proposed inquiry. The message is likely to give much satisfaction to the British Governments. In its presentation of the causes of the present economic crisis, in its insistence that the first need of the world is a recovery in prices, in its recognition of the origins of currency instability and the empirical nature of many of the efforts made to. end that instability, in its admission that disarmament is as much an economict as a political or ethical question, Mr. Hoover’s statement might almost have emanated from Downing Street. Even in the suggestion of an inquiry which supplements the review of the difficulties there is much kinship with the British proposals. If it were possible to assume that the retiring President’s message reflected the opinion of Congress and of the great body of public opinion in the United States it would seem obvious that a change in view had been brought about. Unfortunately, though Mr. Hoover’s message treated all matters as purely economic problems it has to be considered by a political body inimical to his policy generally. How far the logic of the President’s rea-

soning will overcome political prejudices and exigencies has yet to be seen. Latest indications are not hopeful that the co-operation of the new Administration can be counted upon. Mr. Hoover may appoint his commission, and its findings will still have to run the gauntlet of Congressional criticism. By that time the responsibility will rest with a new President, new Cabinet and a Congress of which the attitude towards foreign debts has yet to be determined. Nevertheless, in Great Britain and in every other European country Mr. Hoover’s message is likely to be welcomed. Even if the commission he appoints is not supported by Congress it will ascertain facts to which any United States Administration must give full consideration, and the fact that inquiry has begun will be an indication that it is recognised in America that the Republic cannot stand alone in economic affairs. By linking war debts to general economic difficulties President Hoover has put them into proper relationship. The proposed inquiry will not be concerned with the political origin of the debts, or with their effect upon the political future of Europe. Their effect upon present economic conditions has been stated in plainest language by Great Britain and other debtor countries. The inquiry is to ascertain whether these statements are I borne out by facts, and, if so, what would be the effect of an alteration in the policy of the United States. If such an alteration will bring about trade recovery in Europe and elsewhere it is certain that the. recovery will have a reaction upon American oversea commerce, and that any reduction in claims for war debts will be offset by an. increased- demand for United States exports. President Hoover does not go so far as to admit that this, the British contention, is correct.. He does admit, however, that it is worth inquiry, and that the sooner the investigation begins the better. The policy that is to follow the inquiry may become the responsibility of a new Administration, but that does not detraci from the soundness of Mr Hoover’s proposals.