The Waterbury Democrat., 1938-12-30

| uAWdf fIdAAbCu NkOAhUAOA4op SSANA VI potential, of American political and property rights.
 The United States and the total- | itarian powers at this moment are engaged in a contest for the favor and the commercial and political friendship of South American na- tionS. If foreign developments con- tinue in their present direction the | totalitarian nations may look for action here empowering this gov- ernment to take vigorous economic and financial action against those who discriminate against Amer ican trade and commerce.
 Trade Blacklist Drawn
 United States and German Japanese-Italian commercial in- terests are hitting head-on as the totalitarian theories of exclusive trade agreements and of barter run foul of the American way. Germany, alone, is on the United States trade blacklist, barred from I participation in advantages ac- | corded other nations in the home market. Germany, however, is pro- ceeding with its own international trade system and only recently made barter arrangement with Mexico for oil. It is fairly obvious that the barter and comparatively 1 free state system advanced by the United States cannot live comfort ably side by side.
 l ic Hnf oy1d YA01if- ically dangerous issue. Persecution of Jews has aroused demands for abandoning immigration quotas. | No such step is considered likely. It is possible, however, that some thousands of Jews might find haven here on visitors visas or even, that the United States might receive in the next to IS months German immigrants sufficient to exhaust the German quota for several years. There would be an interim of closed season then against Germans. But even that relaxation is merely a remote pos sibility.
 Monopoly disturbs the admins 1 tration at home. A committee with legislative and executive depart ment representation has begun an investigation of the subject. It may take two years and legislation is not expected prior to its final re- port.
 Six BattleshipS Projected
 The commercial and military re- armament of the United States is under way. Two battleships are being built, the first since the na- val scrapping of 1921. Private bids on three more have been opened A sixth will be built by a govern ment yard. And the administration is believed to be planning to ask Congress for two 45,000-ton super dreadnaughts which might be able to lift 18-inch guns against an enemy. Assistant Secretary of War Louis JohnSon's talk of building 10000 fighting airplanes should be interpreted to mean that there will be real and immediate expansion of the air arm, but not to that fig ure. More essential is preparation of the avitaion industry to produce 10000 planes fast if emergency re- quires them. But anti-aircraft de- lenses are to be expanded rapidly.
 The cost of national defense around $1,000,0O0,000 a year, in a normal New Deal budget, may go up by $300,000,000 or more in the budget to be presented to Congress next week.
 Defense Issue Up
 All that means that there is fear of another world war. MT. Roosevelt believes the United States could not avoid being drawn into it. What the United States should do to prevent war or to avoid belliger- ent status already is a matter of political dispute. The administration is charged variously with encourag- ing war fears to distract the nation from trouble at home and with planning new pump priming pro- gram disguised as spending for na- tional defense. The President says there is no connection between de- fense and the pump.
 There are striking factors among | the problems of peace at home. The Republican party has been re- stored to major political stature. The conservative Democratic re- bellion against MT. Roosevelt is open and acknowledged.
 The President is charged with responsibility for an uninterrupted series of Treasury deficits, for which Congress is equally respon- Sible.
 Unemployment remains the na- tion's No. domestic problem, just as it was when the New Deal took over on March 4, 1883. Private capital still is shell-shocked and hides in bank and government bond bomb shelters.
 Deficit Seen Increasing
 Congress also increased the legal limit of the governments interest bearing indebtedness to $45,000,- OO0, 1000 and provided that not more than $30,000, 100000 could be in long term bonds. A further in crease in the debt limit probably will be necessary. It is quite likely that Treasury deficits will con- tirue at least another year and that MT. Roosevelt will end his second term with an uninterrupted series of deficits.
 Further demanding Congressional attention are various emergency l items which cexpire in 1899 includ-