A speech by President Coolidge

President Coolidge delivered an important speech yesterday at the annual Associated Press luncheon, which was immediately transmitted by wireless telephony and telegraphy. The words of the American head of state could be heard, at the very moment they left his mouth, in a large part of the United States.

Domestic policy

In the first part of his speech, the president dealt with American domestic politics. He affirmed his intention to continue to pursue all civil servants who have abused their position, whenever their guilt has been established. He pledged to make every effort to restrict government spending and expressed a desire to see the necessary measures adopted to reduce income taxes.

The experts' report

Mr. Coolidge then came to give his opinion on the experts' report. He stated that he considered its publication to be the most important step taken since the armistice towards the establishment of European peace. He expressed the wish that America would participate in the loan planned by the experts to put Germany back on its feet financially.

The Dawes report, he said, was favorably received by the Reparations Commission. We are happy to see that the allies view it with complete sympathy and that Germany, which gives its assent, is prepared to cooperate to put it into effect. There is every reason to believe that this report provides a basis for the practical solution of the problem of reparations. I am confident that it will appear to all interested European governments as a method by which, thanks to mutual concessions, they will be able to resolve this complicated and thorny question in a lasting manner, taking into account, on the one hand, of the restoration of Germany and ensuring maximum payments to the countries to which it is the debtor.

Part of the plan drawn up by the experts envisages the issuance of a considerable loan which should be granted immediately to Germany to meet its pressing needs, including the establishment of a bank of issue. I am confident that American private capital will agree to participate in this loan. From a business point of view, we indeed have excellent reasons to cooperate in financially supporting the peaceful reconstruction of Europe. On the other hand, we have repeatedly stated that we are not in favor of advancing funds that could be used for any military purpose.

We know that foreign gold arrived in our country in considerable quantities. It is entirely likely that some of this gold could serve our financial interests more usefully if we placed it in Europe instead of using it in the United States. But there is more. There is a duty towards humanity, and it presents itself very clearly. I am aware that it is our duty to grant our assistance when this assistance is put at the service of just requests and when it serves to pursue peaceful goals,

Disarmament

When a final settlement of the German reparations problem has been established, Mr. Coolidge will declare himself in favor of convening a new world conference for the limitation of armaments and the codification of international law.

We hope, he said, that the restoration of economic stability in Europe will be the beginning of a solid and lasting peace. When this adjustment has been made and sufficient time has elapsed to permit the establishment of a stable European policy, it could serve as the basis for a new effort towards disarmament, following the method adopted at the Washington Conference.

The Washington Conference went a long way towards reviving harmony and goodwill among nations, but the question of submarines, air and land forces still awaits a solution.

A final settlement for the liquidation of reparations should mark the beginning of a new era of peace. It would seem impractical to take action and make specific proposals in the present circumstances, but once a definitive solution to the problem of reparations has been reached, I would welcome the summons of a conference in order to pursue the limitation of armaments and to develop such plans for the codification of an international law which would seem, after a preliminary investigation, to meet with a favorable reception among other governments.

The question of debts

Mr. Coolidge, then recalling the peace negotiations and the refusal of the United States to adhere to the League of Nations pact, declared that he considered this last decision to be final.

The policy of the United States with regard to the question of debts is known. THE. government has always refused to discuss them in an international conference, but this does not mean that it refuses to help resolve European problems, provided however that it is not drawn into purely political controversies.

The International Court of Justice

The President finally recommended the adoption by the Senate of the entry of the United States into the International Court of Justice. He also recommended the codification of international law. Without wishing to propose a definitive formula which would guarantee world peace, Mr. Coolidge believes that frequent international conferences would be profitable. America is qualified to take the lead in such a movement because, Mr. Coolidge says, our position is such that we are trusted and our government and our business houses are seen as deserving of that trust. .