Evening star., 1938-09-04
World Conditions Are
Confusing Statesmen
By OWEN l.. SCOTT.

The result Is situation that is likely
more and more to confuse the whole
country, just as today it is confusing the
policy making officials themselves.
One day President Roosevelt hints that
the United States would come to the aid
OF the British Empire if any one should
threaten Canada. Another day Mr.. Hull
finds time to lecture other nations on
the subject of morality. Mr.. Hull, too,
finds time to tell the Germans that he
can't talk business with them until they
mend their ways.
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Then comes word that the British and
Americans are about to reach q trade
agreement-after months OF struggle
that will climax this Governments effort
to check the trend toward higher and
higher world tariffs. This word is fol-
lowed by decision to start dumping
American wheat on foreign markets.
decision that is in the most violent con-
fiict with Mr.. Hull's trade agreement
policy. A similar dumping policy on the
part of Germany had caused Secretary
Hull, only few days earlier, to scorn
even to talk trade with that Offending
nation.
Just to top it all of, the British pound
has followed along by taking a nose-dive
that will nullify much of any real effect
that could flow from an agreement with
the United States to adjust few tariffs.
The fact OF the matter Is that much of
the worlds trouble and confusion grows
out of an inability or an unwillingness
on the part OF the governmental heads
Of this country to decide just exactly
what part the United States, as the
richest and most powerful nation, Is to
play in world affairs.
The highly practical and yet extremely
difficult choice that has to be made has
been clear for long time.
On the one hand, the United States
possessed OF vast store OF gold, having
a great hoard OF idle capital, with huge
loans already outstanding to other ma
tions and offering an immense internal
market-could choose the role of world
banker. role that Great Britain played
Tor so long with success. This choice of
policy would involve a revival OF great
international banking operations. sweep
ing reductions in tariffs so that debts
might be paid in goods. and a whole Shift
OF psychology on the part of the Nation
from that of insularity to that of world
leadership
Both Mr.. Hull and President Roosevelt
are rather strongly drawn to this choice.
Each enjoys giving advice to other ma
tlons OF the kind that banker could give
to his debtors. Each, too, believes he has
a mission to save as much as possible of
the world. Repeated lectures delivered
at the White House and at the State
Department reflect the official urge to
have the United States jump into world
affairs with both feet
But then there is another side to the
picture. Instead of internationalism
there also is the choice of isolation This
Nation could choose to write off its bad
foreign debts, let the rest Of the world
Hgnt over the remaining resources. mar
shal It's own vast resources of raw mate
rial and capital and turn the national
thought to ways and means of remakinp
the country's economy on a nationaIstic
basis. as free as possible from foreign
shocks
AS matter of fact much of the New
Deal. including its farm program its
money policies and all OF its control
schemes, is shaped in the nationalistic
pattern. 1t just happens that President
Roosevelt enjoys playing both sides.
But despite all of his efforts and those
OF secretary Hull, designed to change
national sentiment toward participation
IN world affairs, the choice of isolation
OBVIOUSLY is favored by large proportion
OF the people of the country. This
choice is reflected in the Nations laws
as well as in other WAYS
Inc Neutrality Act is one evidence of
thls nalonallstic urge. That act is de-
signed to prevent the building I'D of
war trade that eventually would draw the
United states into a conflict to avoid
oppression or to save investments.
PRESIDENT Roosevelt is allowing the nell
trallty law to languish from non-enforce-
ment, but-in spite of his objections to
lt-ne has not dared to ask Congress to
provide notifications. His concern Is
over the prospect that he would get a
much stronger law
Even without the Neutrality Act there
would be the johnson Act as evidence of
the strong hold that isolation has on
Americans
Inc johnson Act bars new loans to
1ofelgn governments which are in default
on oeots owed to the United States Gov
ernment. This serves effectively to close
american capital markets to Great Brit
am ana france and Italy and other war
oeotors. With trouble threatening. the
British are showing an interest in irving
10 arrange war debt deal that would
remove the bar that now confronts them
here
But members of Congress are scared tn
ueatn OF plans to scale down war debts.
again, nationalistic sentiment would be
expected to reveal itself in opposition to
concessions to foreign debtors that would
not be extended to debtors at home.
high tariffs, of course long have served
as evidence of the depth of nationalism
in the United States.
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Now to all of these nationalistic poli-
cles is added the aggressive nationalism
lnVoiVed in the dumping of American
Wneat into foreign markets under Gov
ernment subsidy. This means subsidized
competition in foreign markets. type
OF competition that has produced a
strong protest from our State Depart-
ment when practiced by other nations
Mr. Hull and the President, however. can
see no wrong with the practice when in
dulged in by the United States itself
Actually, the very fact that the United
states is refusing to use its gold as a
oasis for foreign loans, the fact that it
possesses a Neutrality Act and johnson
ACT ana that its tariffs are so high that