PRESIDENT HOOVER

Hokitika Guardian, 3 October 1930, Page 5

PRESIDENT HOOVER

Address ON WORLD POSITION

(United Prise .Association—By Electric Telegraph—Copyright).

(Received this day at 8 a.m.) NEW YORK, October 2. A message from Cleveland (Ohio), states, Mr Hoover addressing the American Bankers Association si!, id: “We have had a severe shock has been disorganisation of our economic ■system, which has temporarily checked: the-march. of prosperity. Though oip- production and consumption have been slowed down to 85 and ninety per cent, of normal, yet by the very fact of steady functioning of the major portion of our system, do we have the assurance of our, ability and economic strength to overcome this decline. The depression is worldwide. Its causes and: effects lie only partly in the Un-

ited States- Our country engaged in over-speculation in securities which crashed a year ago and perhaps an even larger one is imminent. The cause of our depression has been the effect of a collapse of prices following overproduction of important raw materials,- mostly in foreign countries Particularly had the planting of rub- ! her, coffee, wheat, sugar and cotton expanded beyond worldr consumption even in normal times. Certain metals likewise; were overproduced, notably airte,'cooper and silver.” ■ ;Mr Hoover continued: "These major over expansions have taken place largely outside the United States. This collapse has reduced the buying power of many countries and prosperity has been temporarily affected by various causes, on some occasions accompanied by political unrest such as in Brazil, Columbia, Chile, Peru, Mexico, Australia,,. Canada. Tndia, China, Argentine, Cuba and Java, hut readjustments in prices are far along the course. Most of these commodities are below the level at which sufficient .production can he maintained for the world’s, normal needs and therefore sooner, or later must recover. We afe aide .to a considerable degree to free,, ourselves of work] influence, and make a. large measure of indfependent recovery, because we are so remarkably self We shall need mainly

to denend noon ourselves for recovery, as other nations are in greater difficulty than we. are. and we shaH need . again to undertake to assist and cooperate with them.. There is no simnle, explanation of these, movements. .This is not an occasion for an analysis r of many theorms such as too h’tt.ie .gqlcl or inflexible use of it. Whatever the remote causes may he, the immediate,, cause .of most of ..the .hard times isinflatory booms.. These .strike some ..sentiment of .economic fife somewhere in the world and their .re-echoing destructive result will bring depression. ■ We may safely assume pur .economic future is. safe, as far as ijt -is. dependent upon the competent • handling ,of the problems of productivity* hut one result is to further advance towards . stability, which even is more; urgent, for with higher standards of living the whole system is more ■ sonsative and the penalties of instability more widespread.” ■ l .The President- concluded by saving ”Ariv"‘recisslon in American business is, hut a, temporary halt in the prosperity of our great people.” .