We are at peace with the world. We have cooperated with other nations to
preserve peace. The rights of our citizens abroad have been protected.
The economic depression has continued and deepened in every part of the
world during the past year. In many countries political instability,
excessive armaments, debts, governmental expenditures, and taxes have
resulted in revolutions, in unbalanced budgets and monetary collapse and
financial panics, in dumping of goods upon world markets, and in diminished
consumption of commodities.
Within two years there have been revolutions or acute social disorders in
19 countries, embracing more than half the population of the world. Ten
countries have been unable to meet their external obligations. In 14
countries, embracing a quarter of the world's population, former monetary
standards have been temporarily abandoned. In a number of countries there
have been acute financial panics or compulsory restraints upon banking.
These disturbances have many roots in the dislocations from the World War.
Every one of them has reacted upon us. They have sharply affected the
markets and prices of our agricultural and industrial products. They have
increased unemployment and greatly embarrassed our financial and credit
system.
As our difficulties during the past year have plainly originated in large
degree from these sources, any effort to bring about our own recuperation
has dictated the necessity of cooperation by us with other nations in
reasonable effort to restore world confidence and economic stability.
Cooperation of our Federal reserve system and our banks with the central
banks in foreign countries has contributed to localize and ameliorate a
number of serious financial crises or moderate the pressures upon us and
thus avert disasters which would have affected us.
The economic crisis in Germany and Central Europe last June rose to the
dimensions of a general panic from which it was apparent that without
assistance these nations must collapse. Apprehensions of such collapse had
demoralized our agricultural and security markets and so threatened other
nations as to impose further dangers upon us. But of highest importance was
the necessity of cooperation on our part to relieve the people of Germany
from imminent disasters and to maintain their important relations to
progress and stability in the world. Upon the initiative of this Government
a year's postponement of reparations and other intergovernmental debts was
brought about. Upon our further initiative an agreement was made by
Germany's private creditors providing for an extension of such credits
until the German people can develop more permanent and definite forms of
relief.
We have continued our policy of withdrawing our marines from Haiti and
Nicaragua.
The difficulties between China and Japan have given us great concern, not
alone for the maintenance of the spirit of the Kellogg-Briand Pact, but for
the maintenance of the treaties to which we are a party assuring the
territorial integrity of China. It is our purpose to assist in finding
solutions sustaining the full spirit of those treaties.
I shall deal at greater length with our foreign relations in a later
message.