Office of the Historian

Paris Peace Conf. 103.97/105a: Telegram

The Food Administrator (Hoover) to the Acting Food Administrator (Richard)

Paris , January 8, 1919—4:40 p.m.

Food 192. President has signed license cancellations list number 1 effective January 10th. Please announce with the simple statement that this step is taken in accordance with the President’s policy to release trades from restraints of war legislation as rapidly as practicable. Wish you to carefully consider the bearing of following on commodity regulations still outstanding.

  • First. I am gradually coming to the conviction that Europe cannot buy our surplus food between now and harvest without much wider credits than America is likely to give.
  • Second. Owing to Allied opposition to draining Germany of prime assets and impossibility setting up credits readily, she will probably be able to buy less than her real needs.
  • Third. The Allies are transferring all their buying possible to Southern Hemisphere where prices are cheaper and where they have credits, and until they exhaust these resources, they will not return to our markets any more than their necessities absolutely require and during this period we may have great difficulties with many of our surplus foods.
  • Fourth. There is certainly an influential party advocating these policies hoping to lower our prices, thus increasing their buying ability, and at the same time, create prestige at home with their consuming classes.
  • Fifth. These conclusions naturally favor the abandonment of all conservation on practically all food until at least developments here make probable a wider consuming market and more urgent buying of American produce than now appears probable.
  • Sixth. Sugar requires special consideration, and in view above factors and the national policies to reduce expenditures here, I am convinced we should encourage exports freely. Switzerland and other neutrals should be given contract for full year’s supply. If it should develop we had oversold, we could trust to purchases in other parts of the world, and in any event we could finally reduce consumption at home if necessary. If you agree, I would encourage refiners to [Page 711] export and grant export licenses freely, keeping only within our monthly supply.
  • Seventh. There seems to me now, in view of above, to be a positive world surplus of our products as to wheat, barley, rye, pork products, condensed milk, beans. There seems comfortable supply sugar. There appears a shortage of corn which cannot allow for export and a shortage of cottonseed meal. The vegetable oil situation is obscure, also rice.
Hoover