Evening star., 1938-12-05
War Avoidance
Argued at
Town Hall
SouIe and Sir George
Poish Differ on
Means

Two economists, an American
and an Englishman, agreed last
night before a Town Hall audience
at the Shoreham Hotel that tho
basic causes of war were economic,
but differed over means Of adjust
ing the United States foreign trade
policy as an influence in preventing
another conflict.
Urging support of the Neutrality
Act, George Soule, chairman of the
board Of the National Bureau of
Economic Research and an editor
Of the New Republic, discussed THE
Economic Causes of War" with Sir
George Paish, former governor Of
the London School of Economics
and advisor to the English Chan
cellor Of the Exchequer from 1914
to 1916. Sir George held that one
of the chief factors in preventing
another war would be Americas
abandonment of a policy of eco
nomic isolation.
In support of the Neutrality Act,
Mr.. Soule said that it would guard
against the dangers which brought
us into the last war. After review
ing the events which led the United
States into the conflict. Mr.. Soule
said, "On March S, 1917. Mr.. Page
sent President Wilson cable point
ing out that credits Great Britain
had received from the United States
were exhausted No more French
or British securities could be sold.
If there were no further credit to
be had England could not buy NUM-
tions and other materials that were
necessary. Mr.. Page pointed out
that the sudden crisis in the Anglo
and French American trade threat
ened the United States with a panic
at home. In other words going to
war was the only way to maintain
commerce and avoid panic"
Versailles Pact Assailed.
'The Neutrality Act would prevent
an abnormal increase in war trade
that would put us in the position
pointed out in Mr.. Pages cable" he
declared. The law gives US
chance to prevent war boom and
we can control the sale of securi-
ties owned here by foreign govern
mentS and so limit their cash pur-
chasing power that trade can be
held to normal proportions"
Declaring the germs of a new
war lay in the peace of Versailles.
Mr.. Soule said the allies demanded
reparations from Germany far be-
yond the power of pre-war Ger
many and certainly in excess of that
of defeated Germany.
Urging American expansion Of
foreign trade, Sir George said: Re-
member that you are part of the
world. You used to be America and
America alone. That time has gone.
Every one lives in a world now and
not within the confines of his par
ticular country
Commencing the Anglo American
trade pact and foreign trade pol
icies of Secretary Hull, Sir George
declared that world trade must be
stimulated or there will be war.
Confidence Emphasized.
Nations of the world will not 90
into distress without making war"
he declared, especially if they think
they can improve their position by
a war. To restore trade we must
restore confidence, and how can we
restore confidence with the threat
of war staring us in the face? II
America would sell all she produces
both at home and abroad, how pros
porous she would be. You have the
factories here, now you need the
markets"
Sir George said that the dictator
nations need colonies from which
they can draw raw materials or
trade with which they can buy
them. and warned of Germanys
ambitions in South America.
Germany has wanted South
American territory since before the
World War. It's one of the few
parts of the world suitable for Ger
man migration, and Germany in
tends to get it unless we can offer
a reasonable outlook to the German
people and induce them to change
their government because we can
offer such an outlook"
Differing with Sir George on the
question Of South America, MIR. Soule
said that rather than worry over
possible aggression by Hitler and
Mussolini in South America, the
United States should be more con-
cerned with her own policy in re-
lation to the Latin American coun-
tries.
Latin American countries have
learned for generations to fear the
encroachment of American capital.
We should be, especially concerned
with American investments in these
countries and their effects on the
people"
Mr.. Soule also declared that while
he favored an adequate national de-
fense program, there are dangers
to be found in interpretations of its
principles. He declared the danger
in such program lies in the posi-
bility that some individuals will
think that by spending so much on
a defense program, the country will
have a new wave of prosperity.
Sir George in his appeal said that
he wants to f1nd out how America
will act in dangerous situation,
"a situation which unless rectified
will bring disaster to all the coun-
tries of the world"
THE question is whether America
will bring help or will she act as the
British Prime Minister acted at Mu-
mich. While am sure that he acted
with the best motives, I am also
certain he would not have 80 acted
If he could have seen the whole
picture"
In conclusion, Sir George said.
1--WE must come together, coming
together in a spirit OF generosity
and wisdom and in the spirit of
Christ"
nwvers to Meet