Address to the International Chamber of Commerce.

Members of the International Chamber of Commerce:

I bid you welcome to the United States. You have come from many lands and at a time of grave responsibilities at home to participate in discussions that will contribute to world advancement. The consideration and the full and frank discussion of worldwide economic problems and of the economic relations between nations by men who have had to deal with the results of economic forces can be most helpful to world understanding and world cooperation in their solution.

It is needless for me to emphasize the high degree of economic interdependence of the world--we require no more emphatic demonstration than the present worldwide depression. Although the United States enjoys a singular economic independence--greater than any other country perhaps--yet we have been gravely affected by world forces.

The present depression is comparable in its extreme depth and its extent only to those which have followed about the same distance after the former great wars in modern history. This depression is no doubt contributed to by many very important, immediate, economic causes to which each of you will give different weight, but I believe you will all agree with me that the destruction of life and property, the great tax burdens, and the social and political instability which resulted from the Great War have had large responsibility in its origins. Over three-quarters of the commercially important population of the world has been in a state of social and political upheaval at sometime even during the past 3 years. Although some secondary part of this political instability may have been the result of immediate economic causes, we cannot ignore the malign inheritances from the Great War. These political and social disturbances necessarily undermine that confidence upon which economic life, both domestic and international, must thrive.

This is not an occasion for me to review the action and interaction of such a multitude of forces, but I do wish to give emphasis to one of these war inheritances in which international cooperation can effect a major accomplishment in reduction of the tax burdens of the world, removing a primary cause of unrest and the establishment of greater confidence for the long future That is the limitation and reduction of armaments. The world expenditure on all arms is now nearly five billions of dollars yearly, an increase of about 70 percent over that previous to the Great War. We stand today with near 5½ million men actively under arms and 20 million more in reserves. These vast forces, greatly exceeding those of even the prewar period, still are to be demobilized, even though 12 years have passed since the Armistice was signed, and because of fear and of inability of nations to cooperate in mutual reductions. Yet we are all signatories to the Kellogg-Briand Pact, by which we have renounced war as an instrument of national policy and have agreed to settle all controversies by pacific means. Surely with this understanding, the self-defense of nations could be assured with proportionately far less military forces than we have. This vast armament continues not only a burden upon the economic recuperation of the world, but, of even more consequence, the constant threats and fears which arise from it are a serious contribution to all forms of instability, whether they be social, political, or economic.

Endeavor as we must in support of every proposal of international economic cooperation that is just to our respective peoples, yet we must recognize that the reduction of this gigantic waste, this competition in military establishments is in the ultimate of an importance transcendent over nearly every other form of economic effort.

International confidence cannot be builded upon fear. It must be builded upon good will. The whole history of the world is filled with chapter after chapter of the failure to secure peace through either competitive arms or through intimidation.

I am not unaware of the difficulties of this question. No one would suggest that either national defense should be abandoned nor that so great a task as reasonable limitation and reduction of arms can be accomplished over night.

We have made considerable progress in the limitation and reduction of naval arms. We have laid the foundations for still further progress in the future. Those agreements have contributed greatly to the reduction of the burden of taxes and to the reestablishment of confidence and good will amongst the nations who have been signatory to them. Within a short time the principal nations of the world will meet to discuss the broad question of reduction in land armaments. The very calling of this conference is in itself not only proof of need but it is an emphatic evidence of progress in the world demand for relief--for economic relief and for peace. Of all proposals for the economic rehabilitation of the world, I know of none which compares in necessity or immediate importance with the successful results of that conference. The United States has a less direct interest in land armament reduction than any of the large nations because our forces have been already demobilized and reduced more than most others. We have, however, a vast indirect interest in greater assurance of peace, order and the increased economic prosperity of other nations. It is within the power of the businessmen of the world to insist that this problem shall be met with sincerity, with courage, and with constructive action. It is within the power of statesmen to give to the world a great assurance for the future and a great moral victory for humanity.

I wish to thank you for your coming here. I wish to you a successful conference. I have confidence that it will be fruitful of progress.

Thank you.