Evening star., 1937-11-04
INCOME OF i. S.
FACTOR IN UNREST
Dr.. Aranha Says World
"Confusion" Is Readily
Understandable.
ey the Associated Press.


CLEVELAND, Nov. 4.-Dr. Oswaldo
Aranha, Brazilian Ambassador to
the United States, said today world
confusion and danger" were not sur
prising in view of several factors,
among them that the United States
has ''one-half of the world income, to
take care of only one-fifteenth of the
world population"
DR.. Aranha addressed the Foreign
Trade Council at its convention here.
"You must realize that while
your national income per capita is
$500, the average income of almost
two billion other people is only $50 per
capita" his prepared address con-
tinued.
I'VE cannot be surprised that the
world should have drifted into con-
fusion and danger, when we contem-
plate this situation, when we consider
tariff barriers, the stemming of the
free flow of capital, the stoppage of
credit, the deficiency in buying power,
the sterilization of gold, the increase in
taxation, the anarchy in the money
market, the multiplication of compen-
satlng agreements, the development of
the colonial type of commerce, the ac-
ton OF the principal countries toward
more and more formidable armament,
the political and social struggles of the
present day"
A suggested de-bargaining treaty
between United States and Great Brit
ain came before the council for dis
cussion, with President Eugene P.
Thomas expressing belief Chances of
such an agreement are very good"
THE general expectation is there
may be early developments in the line
of treaty with the United Kingdom, !"
Thomas of New York, who formerly
was vice president of the United
States Steel Corp, said.
I'VE believe the chances of such an
agreement are very good. High Brit
ish officials have viewed it with favor.
When the mechanics will be COM
pleted is another matter"
Predicts Rapid Progress.
DR.. Henry F. Grady, vice chairman
of the United States Tariff Commits
sion and one of the discussion leaders
in the reciprocal trade agreements ses-
sion, declared the American tariff
agreement program sis going to move
ahead rapidly"
1T is anticipated" DR.. Grady said,
'there will be number of announce
ments in the months ahead. We are
hopeful that it will be possible to make
an agreement with Great Britain"
The United Kingdom is the prin-
cipal group not now included in the
Is trade agreements negotiated by
Secretary of State Hull under the
trade agreements act of 1884. Can
ada is among the Is nations which
represent about SO per cent of Amer
fcan exports and AZ per cent of this
Nations imports.
Government officials attending the
session of the council, an organiza-
ton devoted to the theme that "for-
eign trade is essential to American
industry" would not discuss publicly
the status Of possible trade agree
ment with Great Britain. Privately
they expressed hopes that one would
be reached, possibly by spring.
Participating in the trade agree
n1ents session, which was closed be-
cause of the desire, one official said,
for frank discussion" of problems,
were DR.. Grady and Harry C. Haw-
kins, chief of the State Department,
Division of Trade Agreements.
Under the Trade Agreements Act
Congress gave the President power to
raise or lower tariffs as much as so
per cent on chief commodities i'm
ported from other nations, in return
for equal treatment for United States
goods.
Messersmith Halls Program.
George S. Messersmith, Assistant
Secretary of State, hailed the Gov
ernment's trade agreements program
as perhaps the only single, important,
constructive element at work in this
disordered world to bring back order
into dislocated commercial markets"
Mr. Messersmith, a former teacher
who joined the foreign service in 1914,
declared the trade program lis one of
the greatest, if not the greatest single
element working today for peace and
stability" He described it as "im-
portant not only because it means so
much for the establishment of our
markets throughout the world but
because, in the opinion of the Presi-
dent and of Secretary Hull and I be-
lieve of all persons who have given
this subject real thought, it is the
principal instrument which is work.
ing for the maintenance of the peace
Of the world in a world in which that
peace is so definitely threatened"
DR.. o. M. w. Sprague of Harvard
University, former New Deal monetary
adviser, told the council that "to
stabilize currencies in a highly un-
stable world does not get you any,
where"
Sooner or later the system will
break down." DR.. Sprague asserted.
What we do not have is the desire,
will, determination to established the
gold standard and maintain it. When
we have made further progress in that
direction I think we will be ready for
currency stabilization in many ma
&c