THE PRESIDENCY: Stream Crossed

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When is Europe's business the business of the U. S.?

Steadfastly since the Versailles Peace Conference (1919) the Republican Party has answered, "Never, except in such specific matters as naval equipment and narcotics control.'' But the U. S. has $1,350,000,000 invested in Germany. And Herbert Hoover has moved around the world enough to appreciate how, increasingly, Europe's business affects U. S. business. As France well guessed, it was not pure altruism that made a Republican U. S. President call for an international debt holiday to save Germany from fiscal chaos. Through the breach in U. S. Isolation thus made, and encouraged by almost solid national sentiment behind him. President Hoover last week marched another, longer step away from G. O. P. tradition. He sent his Secretaries of State and Treasury formally to London to confer with the ministers of Europe on Europe's crisis (see p. 14).

The President's move was in response to an invitation from Great Britain to confer with the six major signatories of the Young Plan—Britain, France, Belgium, Italy, Japan, Germany. President Hoover's debt holiday plan had started the rescue work but more was now needed. Germany wanted a big loan. Private bankers were reluctant to advance her cash until her political and economic stability was more assured. France was haggling for "political guarantees" before she would agree to a German loan. Apparently it was thought that the presence of the U. S., reluctant to discuss European politics, would cut short France's haggling. Apparently sensing this, France preceded the London conference with one of her own, in Paris.

When President Hoover read the London invitation, he quickly called to the White House Acting Secretary of State Castle and Acting Secretary of the Treasury Mills. Had they needed a picture of the U. S. position to help them arrive at their decision, they could have done no better than to send out for a copy of London Punch, whose main cartoon often has all the authority and conciseness of a leader in the august London Times. Punch had depicted a kindly President Hoover carrying nice old Dame Europa in his arms across the waters of world-wide Depression (see cut). Beneath the cartoon were these lines:

Dame Europa: I hope I'm not taking you out of your way, sir.

President Hoover: Not at all, Madam. Your way is my way.

Having decided not to drop the old lady in midstream but to trudge on to shore, President Hoover had more trans-atlantic telephoning to do. Statesman Stimson had arrived in Paris from Italy. Secretary of the Treasury Mellon was still resting at Cap Ferrat, after his arduous nocturnal negotiations on the debt holiday. After three long calls to Paris, President Hoover announced:

Secretary Stimson will attend the conference in London to consider the present emergency problems in Central Europe. I have asked Secretary Mellon, if consistent with his plans, also to attend in order that we may have the benefit of his advice. It is our understanding that the conference is limited entirely to questions of the present emergency.