Evening star., 1934-03-06
WALLACE URGES
PLANNEDECONOMY
U. S. Seen Passing Through
Temporary State of
Theory.
By the Associated Press.

By the Associated Press.
NEW YORK, March 6.-The United
States is passing through temporary
state of theory, Secretary of Agricul-
ture Henry A. Wallace declared yes
terday, out of which must come a
definite and thoroughly planned econ
1882"
I'VE may continue to live in this
illusion, or theoretical state, for an
ether year or two or three" the Sec
retary said, but if we do not cut
through that illusion to the necessity
of going in one of several directions
-. there will be uncontrolled inf1a-
ton
Cites Three Lines.
As the first witness before the Com
mission of Inquiry on National Policy
Secretary wallace delineated three
major lines of economic planning-in-
ternationahsm, economic nationalism
and combination of the two.
The Secretary'S testimony. in some
measure, was the answer to his recent
ard much-discussed pamphlet Amer
ica Must Choose" in which a similar
delineation was made.
Il might as we'll confess it." Wal
lace said My own preludices are
decidedly against the nationalistic ap-
proach.
1T seems to me that by all Odds"
he added. the most courageous course
is to put the emphasis on interna-
tionaism r."
The international approach to
planned economy. Secretary Wallace
said, would take at least imports to
the value of S700, 100000 annually to
service our debts and to give an ef-
fective foreign purchasing power for
a modest surplus Of our export indus
tries. *~*
1T also involves a more or less con-
scious control of international credits,
SO that our public, which was much
disillusioned during 80, 81 and '32
with regard to loans made abroad,
may have greater assurance as to the
intelligence of such leans"
Favors International Plan.
While under a nationalistic econ
omy, the Secretary said America
could have very high standard of
living, this standard would be mate
rally higher under the international
approach.
The national approach, he declared,
would mean a very high degree CT
Government centralizing power" in
the retirement of acreage.
The common sense eventuality."
Wallace said, would be the effecting
as quickly as possible a combination
OF the two approaches-"a situation
where you Will import, says, S4OO,-
100000 more goods than now and re-
tire from cultivation perhaps 25,oOO,-
600 acres of land
The Commission of Inquiry, formed
by the Social Science Research Coun-
Gil with the approval of President
Roosevelt and under the chairman
ship of President Robert M. Hutchins
OF the university of Chicago, will
aiOiu ilcdII IHSS tIlIOugQOuu the Nation.
In the Fall it will make a report
containing recommendations on
policy for America in international
economic relations.
Indorses Tariff Scheme.
The discussion that followed the
6ecretarys testimony brought from
Wallace strong Endorsement Of
President Roosevelt's proposal to
transfer to the White House the power
to negotiate and bargain for tariffs.
The President could exercise tariff
powers more definitely for the ma
tlonal interests, Wallace said, than
could Congress where, "as is known
Of old time, there is continuous log
rolling"
In his testimony, Wallace dwelt at
some length on the political influence
used by some inefficient American
industries" to obtain tariff benefits in
Con oraSe