Evening star., 1935-02-04
THEORIES CONFLICT
ON FOREIGN TRADE
Wide Diversity of Ideas Re.
viewed by Senate
Committee.
BY FREDERICK GARDNER.

Uncle Sans foreign trade, reduced
to about half its pre-depression size,
is the bone of contention in renewed
tug-of-war between the forces of ma
tionalistic and international policies.
A wide diversity of ideas, inside and
outside the New Deal family, for de-
veloping trade has been passing in
review before the Senate Agricultural
Committee in its cotton clinic.
The parade of witnesses has in
cluded Secretaries Hull, Wallace, Roper
and Morgenthau aside from an array
of experts representing Government
agencies and private trade and agri-
cultural interests. Most of them had
definite ideas for barter, lowering
tariffs, international agreements, re-
moving price controls and SO on.
Meanwhile. the outlook for pro-
noting foreign trade has been OBJ
scured by events of the past week and
some trade observers here were dis
posed to be peSsimistic as they fol-
lowed the conflict of ideas.
court heJectlUn DepiOTeu.
While the drastic slump in cotton
shipments was being diagnosed ip re-
lation to the whole foreign trade prob
lem, the Senate voted down the World
Court proposal, Russian debt and trade
negotiations collapsed and December
trade figures showed the first declined
in exports in l9 months compared
with the preceding year.
Completion of the Brazilian agree
ment afforded small comfort to those
who had been toying with hopes OF
early settlement of the Russian debt
as a prelude to a big expansion in
trade with the Soviets. Exponents OF
internationalism feared the rejection
of the World Court would hinder fur
ther attempts to make trade pacts
with European nations.
The Senate vote on the Court issue
was held by some observers to be a
reflection of the unwillingness of the
country as a whole to espoUse the
international viewpoint as pferequi-
site to revival of foreign trade on any,
thing like the scale of the postwar
decade.
However. there were indications
latest developments in the trade field
may spur efforts by the State Depart
ment to conclude agreements with
Latin American countries. Most of
the leading countries of South and
Central America have been mentioned
as candidates for pacts along the line
of the Cuban and Brazilian agree
mentS.
Hull and Peek Differ.
Within the New Deal ranks the con-
flict of ideas between Secretary Of
State Hull and George N. Peek, special
adviser to President Roosevelt on for
eign trade, has been brought into the
open again.
Secretary Hull continues to preach
internationalism, lowering of tariffs
and agreements among nations.
Mr.. Peek. who believes the times
have changed and that foreign nations
are unlikely to abandon restrictions
and controls soon, wants to barter
within the framework of existing bar
riers for the exchange of specific goods
and raw materials, such as his pro-
posed deals with Germany and Poland
on cotton
On the sidelines sits Secretary of Ag-
riculture Wallace repeating America
must choose" between buying more
abroad or selling less. between inter-
nationalism and nationalism. with the
latter'S implication of permanent crop
control and rearrangement of the
domestic economy.
Secretary of Commerce Roper went
the champions of trade control one
better with proposal the whole world
be put under an export quota system,
regulated by an international board
Whose ideas ultimately will rule New
Deal trade policies keeps Washington
guessing.