Evening star., 1937-07-18
WELLES BRINGS CHANGE
INU. S. ATTITUDE ABROAD
Old Policy of Official Optimism in Face
of Most Critical Situations Is
Being Abandoned.

honestly Offering them access to the
world resources Of raw materials. The
colonial powers have gone on record
as definitely rejecting these demands.
But even in the field of financial CO.
operation, not once during these last
two years of negotiations has there
been sincere effort on the part of
France and Britain to treat their
political antagonists fairly.
Germany and Italy have been driven
in this manner to the barter system
and to replacing gold by regimented
national labor as an inevitable conse-
quence OF the short-sightedness Of
Paris and London. The results, so
far, have been more disastrous to the
democracies of the world than to the
relationships.
Collapse Is Predicted.
In South America. in Asia. in
Africa and in Eastern and Southern
Europe commodities offered by coun-
tries producing on the old basis are
rapidly being replaced by those pro-
duced under compulsory labor and
exchanged by barter The economists
in Washington. London and Paris
shout that this state of affairs cannot
last and that within a comparatively
short period the whole neW-fangled
economic structure of the authori-
tartan states must collapse. This NAV
be true. But for the time being there
are no definite signs that it will. Ar
eentina, Brazil and Chile are following
! the United States in their political
aims, but they are trading more and
more with Germany and Italy.
The states in the Danubian Basin
are nominally allied to their great
sister democracy. France. But they
are buying German and Italian pro-
| ducts because these two states are
willing to exchange their manufac-
tured goods for whatever products are
offered.
The immediate repercussion of this
new economic system is already notice.
able IN France. That country, which
only 10 months ago was considered the
financial Gibraltar Of Europe. today
is in sad plight. And her economic
discontinue is not due entirely to the
heavy expenditure on new social legis-
latlon and rearmament The bottom
has fallen out OF her foreign trade.
Bonnet Reversal Forced.
Finance Minister Georges Bonnet, a
strong advocate of the gold fetish at
the London Economic Conference in
1888, was compelled to forget his
theories and abandon the gold stand.
ard IN the hope OF saving his country
from financial and economic disas-
ter. But where he is going to get the
$4,000, 100000 the treasury needs to
cover its deficit before the end of this
flscal year is problem which worries
the former Ambassado to WASHINGTON
day and night.
President Roosevelt and his deter
mined Secretary Of State. Cordell Hull.
nope that this tense situation NAV
orlVe some practical common sense
into the minds Of the European lead
ers; that in order to avoid an immi-
nent catastrophe, they will begin to
talk seriously about an international
economic understanding which would
pave the way to political agreement.
Premier Van iceland OF Belgium
took a message back to Europe from
President Roosevelt. That message
admonished the statesmen of Europe
to get together and start the treatment
OF their political ills. We will then
come to their assistance to trv to
cure their economic troubles. The
situation is too perilous to risk further
delay. The time may come when we
won't be able to help.
undersecretary Welles put this ad-
monltion on record July 7 when he
stated officially. We must plav our
part in graphing with the
disease which afflicts mankind before
II Is too late. If the nations
overseas will undertake to readiust
the lnequities which arose between
themselves after the World War I.
believe the American public opinion
would overwhelmingly favor a co.
operation on the part of their Govern
ment," -
(Conyrieht 1872