Statement by President Hoover44
I am glad to announce that the American proposal for one year’s postponement of all intergovernmental debts and reparations has now been accepted in principle by all of the important creditor governments. The terms of acceptance by the French Government are, of course, subject to the approval of the other interested powers, for whom the American Government naturally can not speak. Without going into technical terms, while certain payments are made by Germany for reparations account, the substance of the President’s proposal is retained, as the sums so paid are immediately reloaned to Germany.
The technical difficulties arising from many complicated international agreements, which involve the aggregate payment between governments of over $800,000,000 per annum, are now in the course of solution by the good-will and earnest cooperation of governmental leaders everywhere.
The American part of the plan is, of course, subject to the approval by Congress, but I have received the individual assurances of support from a very large majority of the Members of both Senate and House, irrespective of political affiliations.
The acceptance of this proposal has meant sacrifices by the American people and by the former Allied Governments, who are with all others suffering from world-wide depression and deficits in governmental budgets. The economic load most seriously oppressing the peoples of Germany and central Europe will be immensely lightened.
While the plan is particularly aimed to economic relief, yet economic relief means the swinging of men’s minds from fear to confidence, the swinging of nations from the apprehension of disorder and governmental collapse to hope and confidence of the future. It means tangible aid to unemployment and agriculture.
The almost unanimous support in the United States is again profound evidence of the sincere humanity of the American people. And in this year, devoted to economic upbuilding, the world has need of solemn thought on the causes which have contributed to the depression. I need not repeat that one of these causes is the burdens imposed and the fears aroused by competitive armament. Contemplation of the past few weeks should bring a realization that we must find relief from these fundamental burdens which to-day amount to several times the amount of intergovernmental debts.
- Issued by the White House as a press release, July 6, 1931; reprinted from Department of State, Press Releases, July 11, 1931, p. 42.↩