Hoover Praises Free Enterprise Before Business School Audience

Under Secretary of State Herbert Hoover, Jr. expressed confidence in the American system of free enterprise yesterday afternoon before a capacity Business School audience in Carey Cage.

"The Soviet bloc has found no evidence of economic collapse in the free world," Hoover said. "The United States has not had a major depression, as the Marxists had anticipated. On the contrary, we seem to be in a stronger position than ever before, and there is every indication that we can carry on the present pace indefinitely."

Hoover contrasted the agricultural and petroleum situations in the free world and the Communist bloc to illustrate the "inherent soundness of the free enterprise, incentive system."

Citing Moscow's own figures, Hoover said that agricultural production in the Soviet Union has increased by only ten percent since 1940, although more than half of the labor force is engaged in agriculture and population is increasing by three million persons each year. In contrast, the United States "has produced more than enough food for our population, and yet we have the lowest percentage of people employed in agriculture of any country in the world," he said.

Communist petroleum production suffers through the repeated attempts to nationalize the industry, according to Hoover.