Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-09-24

stuffs whenever her manpower goes
to war Our own increased acreage
of today was direct result of stimu-
lated production for war purposes.
Industrial America would not feel
the war as quickly as the agricultural
side, but steel and metals would
promptly begin to be in great demand.
Factories not now making a profit,
known as marginal, would Immediately
be eligible for war orders.
Legislation to prevent America from
supplying war materials will be
agitated, but by the time Congress
meets prices will have gone so high
in the event of European war that
to enact the laws would mean a de-
f1ationary action so far reaching as
to mobilize an overwhelming ma jority
against such restriction.
The line of demarcation between
supplies needed for civilian popula-
lions and for combatant armies is
not easy to draw and if the United
States made technical distinctions, the
exports of necessary products would
promptly be arranged for through
neutral countries like Holland or
Belgium.
Cash ard Garry Operates.
The important difference between
1914 and 1888 is that the naval ques-
ton of contraband will hardly arise
America takes the position that the
cash-and carry plan means any nation
can buy, but must come and get
the products. The Anglo-French
navies are strong enough to command
the seas, so an uninterrupted flow Of
. American commerce to the British and
French could be maintained
There has been rather widespread
belief that the countries allied against
Germany might not be able to borrow
In America. The Government here,
OF course. would not make any loans,
but it will be recalled that between
1914 and 1917 the borrowing by the
allies was extensive and was done
entirely through private loans floated
to American investors
Large bank balances would be Sc
curity for these loans since the British
and French have been gradually &C
of fact the allied governments would
be somewhat better Oft this year than
they were in 1914 because, thanks
to Mr.. Roosevelts devaluation of the
gold content of the American dollar.
European ounce OF gold buys $35
worth of American goods today, where
as in 1914 the same ounce of gold
obtained only $20.67 worth of goods.
Price Shocks in Store.
The demand for war supplies may
have sensational effect on the price
structure of America. Thus in war
times wheat was selling at 1920 a
bushel and the farmers protested that
it should never have been held at
that figure, but should have been
allowed to go to 81 bushel. Fancy
prices for American raw materials
were also paid.
So, summing it up, it would appear
that the economic situation would turn
into a boom and America would profit
again by Europe's misfortunes. None
OF these profits, of course, is worth a
single human life, but viewed OBJ
jectively, Europe's war will be Amer
ica's gain.
There Is, notwithstanding all this
potential benefit, desire as well as
belief here that European war will
not materialize. When Hitler comes
face to face with the reality that
Americas granary and arsenals can
be put at the disposal of his enemies
by greater navy than he has, the
expectation here is that the game of
diplomatic bluflng will come to a
peaceful end.