Evening star., 1936-10-18
Secretary Hull Hero of a
Dramatic Success Story
BY OWEN L. SCOTT.

and an argument. Today the argument
appears to be won and the theory Is on
the way to a broad trial.
Outward sign of all this comes to the
public in reports of currency devalua-
ton, of stabilization agreements, OF new
prices for gold-all very complicated,
hard to understand and not particularly
interesting. In those terms the story
is dull
But translated into simple language
these developments mean that Cordell
Hull, Secretary of State, is winning an
argument that he has fought for per-
sistently since taking Office.
His argument is that if democracy is
to survive in this world then nations
cannot struggle to make themselves self
sufficient by closing their borders to
trade with other nations. They must
be willing to trade among themselves
and to adopt policies that will encourage
trade. And among all nations the United
States must lead the way.
The world scoffed at first, showing
little interest in the Hull viewpoint.
Autarchy"-economic self -sufficiency
became the goal of nation after nation.
Tariffs went up, currencies came down,
quotas were set on imports, barter be-
came an accepted method of trade.
The New Deal followed the procession.
1t is Mr.. Hulls theory that the whole
world procession toward autarchy started
inside the United States when Congress
enacted the Smoot- -Hawley tariff law
thereby making 1t harder for countries
owing money in this country to pay with
anything except gold. When they ran
out of gold. there was little to do but put
up defenses and fight back.
Once the battle really got under way
this country, contrary to the wishes of
Secretary Hull, set out to win by su-
perior force.
The dollar was cut loose from gold
to be available as weapon. Industry
and agriculture were controlled" to per-
nit their development more free from
world influences. Government undertook
to control credit, to expand purchasing
power and to bring the sort of economic
balance that world competition formerly
brought in more indirect way.
The idea took hold that the United
States did not need foreign trade, that
IL COulO Bct dlOIlB Dy lJSelI.
The Secretary of State and Henry
Wallace, Secretary of Agriculture. fought
that thesis. They insisted that self
suff1ciency could be possible only under
dictatorship. Russia, Germany and
Italy were chief exponents of the idea
abroad. In each of those countries every
semblance OF enterprise was dominated
by the state.
Raymond Moley was the first exponent
OF controlled foreign trade to be elevated
by President Roosevelt. He crossed Mr..
Hull and went out. Then George Peek
was made foreign trade adviser to the
President and took up the argument
where Mr.. Moley left off
But by this time President Roosevelt
had been convinced of the soundneSs
Of the Hull thesis He obtained from
Congress power to adjust tariffs down
ward or upward by as much as so per
cent and to enter into trade agreements
with other nations. With this power.
the Secretary of State thought that the
world tide could be turned away from
autarchy and toward more normal COM
nerce.
The issue soon was drawn between Mr..
Hull and Mr.. Peek. The Secretary of
State wanted to use the Presidents new
powers to break down tariff walls and
to have this country supply an example
In leadership away from controlled for
eign trade.
The foreign trade adviser to the Presi-
dent wanted to use the powers to extend
planning into the field of foreign COM
merce, with concessions limited to coun-
tries making specific concessions to the
United States and with a giant corpora
ton to handle exports and imports, ex-
Guiding things that could be made Just
as well at home.
When Germany offered to buy 300. 900
bales OF American cotton in exchange
Tor currency that could be used only for
purchase Of German goods that would
not otherwise be sold in the United
States the two theories clashed.
MIR. Hull insisted on turning down
that offer, even though this country
needed badly to sell cotton, on the
ground that the deal would put the
Government into the business of foreign
trade control on a selective basis, giving
concessions to one country that would
IOC De gwen TO others.
X n
Mr.. Roosevelt backed his secre .ary of
State, and Mr.. Peek not long afterward
made his exit.
The United States entered into agree
mentS with country after country, IA
in all, providing for tariff reductions
Once a reduction was promised one
country it was available to all not on
the unfair list. The most important of
the agreements was with Canada. The
next most important was with France.
But the sight of Canadian cheese and
cattle and lumber entering this coun-
try aroused good many people in this
country. AS the present presidential
campaign got under way it looked as If
the Hull policies were to be a milestone
around the Presidents political neck.
Then the drama appeared France
had been struggling, by the use of all
Of the fancy trade controls urged upon
this country, to maintain her front in
the world currency war. Late in Sep
tember she had to admit defeat. She
was ready to talk business on trade and
currency controls. The United States
and Great Britain co-operated and terms
OF peace were agreed upon. They in
volved quota and tariff adjustments.
Other countries quickly fell into line.
Mussolini joined up with the rest-to
demonstrate that even a dictatorship
can tire of the trade fight