Milford chronicle., 1938-12-02

EEoW EoCdt WGlEdEes
If it were a sporting event. the
contest now being waged between
the United States and Germany in
seeking foreign markets. principally
in Latin America. could aptly be ad-
vertised in this fashion: "COrdell
Hull and his Reciprocal Trade The
Ory VS.. Adolf Hitler and his German
Barter Systematic show of the cen,
tury." AS Business Week puts It, in
more sober vein, "The political bat
tie which ended in the Munich truce
was fought almost entirely in Eu-
rope. Its sequel is a vast trade war
that is going to be fought in the
Americas"
This is primarily a conflict be-
tween two philosophers of world
trade. Mr.. Hull. as his long con
-gressional record shows, Is at hcaet
a free trader. He is also a realist.
and thus knows that the ideal of
free trade Is not attainable In the
world at present--and In all prob
ability will not be- for decades to
come. il ever. Therefore, he seeks
what he believes Is the next best
thing-trade agreements between
this and other countries designed to
promote the freest possible flow OF
goods with the lowest possible tariff
costs. Mr.. Hull believes in this not
only because he thinks it is good
for world eommerce-of greater i'm
pOrtance. he feels that strong and
amicable commercial ties between
great powers IS the best guarantee
we can have Of world peace. So far a 4
large number of treaties have been
the most important one
heing that effected with Canada. And
a new and pntentially more imror-
tant one still. is about concluded
with Britain. and will go into effect.
to schedule. the first Of
newt wear. Under the terms of these
treaties. the great bulk Of deals are
in cash - dollars.
pounds. francs, lire. rubles, or what
sver currencies are used in the ma
ions involved.
When you do business with Ger
many, however, cash is the one thing
you can't get. The Reich has next to
10 foreign credit. Therefore, at Hit
er's bidding. DR.. Schacht of the
2eichsbank put into effect a curious
ind novel scheme. II you. for in
Itance. are an American manufae-
urer Of typewriters. and accept an
rider for ten thousand machines
rom Germany. all you get when
hey are delivered is a credit. You
nav use this credit within Germany
o buy cameras. toys. liquor, or any
hing else that is produced in Ger
nan territory, to the value Of the
you have sold. If you
ave a market for such German pro-
ucts. or II you can find buyer for
our credit. well and good. But
therwise you can't get real money.
Today Germany. as this column
las pointed out before. is looking
nore and more to South America.
conquest Of the Sudetenland has
realty Increased German industrial
and she must find mar
cts. Furthermore. she is often able
nd willing to make far better bar
or deals than we can make in cash
eals. In central Europe Germany
as already taken a large part OF
he great market which once was
srgely monopelized by the English. !
he is threatening 10 do the same }
hing to us in the Western hemis-
here.
What will come Of this growing I
Dnflict-and make no mistake about
s seriousness-cannot yet be fore I
ast. Perhaps we will change our I
,reign policies somewhat in order '
} successfully meet German COM
stitiop And perhans still more I
ns~ihIe. is the chance that Hitler n
M take the initiative in resuming s
ade relations with this country r
% lest trade agreement we had
ith GERMANY was cancelled nv Hit a
r IN 1874. and we have done rels- Il
vely little business with her since. a
: business Week also saws. there z
e three big reasons why Hitler I