The Washington times., 1936-10-24
By DAVID p. SENTNER
Copyright 1895, by international
News Service)

Copyright. 1885, by international
News service)
LONDON, Oct. 24.-Economics
is the steering wheel behind the
new war machine Of Europe.
And today it looks as if democ-
racy has jumped into the drivers
seat.
The recent currency agreement
is expected to have striking roper
cussions in the political field.
What has the intricate problem
of foreign exchange to do with the
1886 war machine? Just this:
To conduct modern war, ma
ton must be assured of steady
supply Of raw materials.
Materials Needed
The mechanical army marches
on a tin Stomach-calling hun
grily for vast quantities of oil.
The relationships of Europe are
striving intensely to create indie
pendence in their supply of raw
materials in order to perfect their
war machinery.
Germany has been extracting
oil from coal in huge amounts,
drawing nitrogen from the air,
creating ingenious substitutes for
war materials they previously i'm
ported.
In connection with his four-year
plan for Self-sufficiency, Hitler has
just declared that within 18
months Germany would be under
no compulsion to import any oil.
At present, Germany imports one
million tons of motor fuel an
nually.
Must Have Gold
Mussolini recently stated that
plan to make Italy Self-Sufficient
in the field of raw materials has
shown notable results"
Russia has organized her iron
and steel production as we'll as
agriculture on a military strategic
basis.
But they all need and want
gold.
A nation must have strong gold
reserve to conduct a war.
In case it's domestic supply is
strained under war conditions, a
nation must maintain large credits
in neutral countries for imports of
raw materials.
Regardless of recent statements
from Germany, Russia and Italy,
financial leaders here are conf
dent these nations will be forced
to come into the currency agree
ment on the terms dictated by me
three democratic powers who pos
sess four-fifthS of the worlds gold.
Results Expected
Possible results of the currency
agreement are as follows:
l. Through increase in the
value of gold reserves through
the currency agreement, France
and other democracieS con-
cerned may be better able to
bear the financial burden of
the ornaments race than the
totalitarian nations. This fac
tor may entice the dictatorship
nations into an armament linn
itation agreement.
2. A vital common interest
has been formed among Euro
pean democratic nations. Per
haps it is forerunner of politi-
cal unity.
3. The increased flow of in
ternational trade expected to
follow the new currency align
ment will benefit Germany,
Italy and Russia, but it may
benefit other nations ever more.
4. Faced with the necessity
of taking their share of the ex-
pected international prosperity
through the renewed channels
Of trade, the totalitarian ma
tions may be forced to nullify
their "self-sufficiency" programs.
Thus-the currency agreement
may we'll provide the brake on the
runaway race in international
ornaments.
The combined financial re-
sources of the worlds democratic
nations may reduce the load on
the European military machine
1886 model, and may even turn it's
face to the wall for an indefinite
Toario1