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Show RUSSIA WARNED i TO MEND WAYS Hoover Thinks U. S. Must Wait Until Life and Property Are Secure WASHINGTON May 1 1 America's i only course toward Russia Is to dc-j cllnc relationship until confidence is restored in the rights of property and the sanctity of contract In that country. coun-try. Secretary Hoover declared in an address Monday before the United States se tlon of the international chamber of commerce. Russia, Mr. Hoover asserted, has I made some progress toward the prl- nviry economic essentials necessary toj tho restoration of confidence, . but I even under the present somewhat modified system there both security and promise of productivity are Insufficiently In-sufficiently certain. "Our citizens In considering tiiesoj things," he said, "naturally raise the question of the treatment of our fellow fel-low countrymen who have alroady Invested In-vested their savings In Rueeia, not alone because of any solicitude for the comparatively small amount of such Investment, but because their treatment treat-ment will be tin .ihIcx of confidence I to others far beyond this because ' there lies here a pr.nciplo to which ! the American people must take hoed, for that principle lies at the root of the whole basis of international' I commerce That principle is that un- ! less foreign merchants and Investors I riiay enjoy property and security of. ! contract under the terms of the in-j in-j stltutlons by which they acquired them, or alternatively, receive com-! com-! pensstlpn for the loss of them, then I the whole fabric of International .trade and commerce will disappear and the world will ao un In cliaor. Misi uidiP HERSELF- "Unless there can be an assurance of the security for these rights of'for- Signers, there can be no processes of exchange In goods or Investment of savings. Our only course Is to de-jcllne de-jcllne relationships until these rela-l , tionships are maintained. " Thcso lcwa Mr Hoover continued, were not "academic theories." but 'the economic foundations of rela-I rela-I tion.s that must be established with I Russia, for they alone will make fori I her real reconstruction and tho sal I i vation of her people." Real and lasting help to Russia I must bo based on cold economics or j it will bring no real reconstruction I or relief to that country, he asserted, adding that the establishment of a soviet ambassador would not cause goods to flow In "an economic vacuum" vac-uum" He reviewed the asatstaneo giv-j en Russia In famine relief but main-; tained that charity" wan not the solution for Russia which "must work out her own political and economic system " "Three solemn facts are outstanding." outstand-ing." Mr Hoover continued 'The' I first is that when Russia was run-I run-I nlng mil blast previous to tho war. j she took one pr cent of the exports of tho I riite,) States, which, when reduced re-duced Into terms of working time of our workmen und farmers. meant I roughly the employment of sav 30 -, 000 Americans Wo are not, there-I there-I fore, nor ever will be dopondent upon Russia for the physical welfare of our pC-iple "The second Is that Russia Is bankrupt; bank-rupt; she has no productivity; her factories fac-tories and mines even where found-1 ed on Russian raw material and re- : pairs are producing but from two to 16 per cent; tho railways arc trans-: j porting le93 than 7 per cent of their pre-war capacity; her agricultural I production Is below her own needs I instead of her normal groat surplus, she has eaten up her entire fat and can for a long time have nothing to exchange for the services of our workmen work-men or tho savings of our investors Therefore, if w. would supply work, capital and talent to the reconstruction reconstruc-tion and productivity of Russia, it must be given upon credit or charity SECURITY REQUIRED. "Third, when our people aro called upon to place their savings Into such Investments thev will be likely to ask for security for ropaj ment and evi- rience that there will be a return to productivity In order that payment may bo made. We arrive at once at tho primary consideration of those economic essentials that will make productivity possible and that will give security to the Investment Our government stated theeo standards one year ago, as follows: 'No lasting rood can result so long as the present pres-ent causes of progressive Impoverishment Impoverish-ment continue to operate It is only In the productivity of Russia that there Is any hope for the Russian pco-l'K'. pco-l'K'. .mil lie to expect resump tion of trade until tho economic bases of production are securely established. Production Is conditioned upon the safety of life, the sanctity of contract snrl the rights of free labor. " |
