The Kennewick courier-reporter and the White Bluffs spokesman. [volume] (Kennewick, Wash.) 1938-1939, 1938-11-17
If it were a Sporting event, the

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 adj
vertised in this fashion: "Cordell
Hull and his Reciprocal Trade The
DRY VS.. Adolf Hitler and his Ger
man Barter System-the show OF
the century," AS Business Week
puts it, in more sober vein, "The
political battle which ended In the
Munich truce was fought almost en-
tirely in Europe. Its sequel is a
vast trade war that is going to be
fought in the Americas"
This is primarily conflict be-
tween two PHILOSOPHERS of world
trade. Mr.. Hull, as his long con-
gressional record shows, is at heart
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 proba-
bility will not be for decades to
come, if 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 tar
riff costs. Mr.. Hull believes in this
not only because he thinks it is good
for world commerce 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 large number of treaties have
been concluded, the most important
one being that effected with Can
ada. And a new and potentially
more important one still, is about
concluded with Britain, and will go
into effect, according to schedule,
the first Of next year. Under the
terms Of these treaties, the great
bulk of deals are c0nSummated in
cash-dollars, pounds, francs, lire,
rubles, or whatever currencies are
used in the nations involved.
When you do business with Ger
many, however, cash is the one
thing you can't get. The Reich has
next to no foreign credit. Therefore,
at Hitler's bidding, DR.. Schacht of
the Reichsbank put into effect q
curious and novel scheme. If you,
for instance, are an American man
ufacturer Of typewriters, and ac-
cept an order for ten thousand ma
chimes from Germany, all you get
when they are delivered is credit.
You may use this credit within Ger
many to buy cameras, toys, liquor, or
anything else that is produced in
German territory, to the value Of
the typewriters you have sold. II
you have q market for such Ger
man products, or If you can find a
buyer for your credit, well and good.
But otherwise you can't get real
money.
Today Germany. as this column
has pointed out before, is looking
more and more to South America.
Conquest of the Sudetenland has
greatly increased German industrial
production, and she must find mar
kets. Furthermore, she is often
able and willing to make far bet
ter barter deals than we can make
in cash deals. In central Europe
Germany has already taken large
part of the great market which once
was largely monopolized by the
English. She Is threatening to dc
the same thing to us in the West
ern hemisphere.
What will come of this growing
conflict-and make no mistake
about it's seriouSnesS-ca yet bt
forecast. Perhaps we will change
our foreign policies somewhat in or
der to successfully meet German
competition. And perhaps still
more possible, is the chance tina
Hitler will take the initiative in re
Stunning trade relations with thi
countryside last trade agreemen
we had with Germany was cancel
led by Hitler in 1884, and we hav
done relatively little business wit
her since. AS Business Week ais
saws, there are three big reasons VIII
Hitler might desire this: ~ &c,
many needs American buyers to al
sorb some Of the products OF II
Sudetan; (2) Germany also nee'
us to absorb some Of the produce
her own internal industries: (3)
the Anglo-U. S. trade agreemel
does go into effect, as seems almo
certain, this will destroy valuat
export market for Germany, unle
adjustments can be made.
This drama is well worth watc
ing-it is the sort Of thing that q
termines world prosperity or VOL
depression, as well as peace and w
Whatever happens, it Is COLOR
and novel chapter in the long n