Milford chronicle., 1939-01-27
Economic HishIights
Happenings That Affect the Dinner
Pals, Dividend Cheeks and Tax
Bills of Every Individual; National
and international Problems Insep-
arabic from Local Welfare.

ton in the forthcoming Congress-
has started to fight the dictator ma
\ tions with their own weapons of gov
ernment-subsidized trade and finan
J cial credits to needy friendly ma.
tions.
That, in the view of political ex-
perts. is the only deduction that car
be made from two remarkable
events which occurred during the
, week ending December IL.
First, in a cautiously worded an
nouncement, Secretary Morgenthau
said that the Treasury was studying
, plan to use Federal funds to help
finance trade with South America
Coming on the heels of the Lima
conference, in which the American
delegates tried, with cOderate sue
cess, to cement cracked Pan-Amer-
lean relations, the meaning of this
is apparent. We have been steadily
losing ground in South America.
Germany, with her blOck-mark bar
ter system, has been steadily gain
ing, as has Italy to a lesser degree.
With foreign trades in its present
state of doldrums, private capital is
not in any position to fight trade
war in which the enemy" has be-
hind It the resources of a powerful
government. Therefore, it is argued,
this government must help Ameri-
can business in way very similar
TO the way the Fascist and NaZi gov
ernments help their businesses.
Second, there was announced an
extremely complicated plan which
will give the hard-pressed Chinese
national government a sizable U.
Treasury credit. As Washington
correspondents AlsOp and Kintner
write. 1.-The highly involved form of
the Chinese credit all but Obscures
the vital fact that 1t will bring des-
| perately needed supplies to the tat
tered armies of Chang Kai-Shek.
But, however complex the method,
supplying the Chinese patriots is an
assault on the invading Japanese"
There is a moral issue in all this
our government definitely dislikes
the dictatOrs. and various surveys
have shown the American people to
be almost solidly behind the Admin
istratiOn in its attack on tOtalitarian
states and methods. At the same
time. there is also a very practical,
dOllars-and-cehts issue involved in
our giving support to China, as well
as in our trying to regain lost South
American business. At the beginning
of the undeclared Sino-Japanese
war, the Representatives of the ag-
gressive little Eastern empire were
extremely vocal in assuring interest. /
ed foreign powers, that, whatever
came to pass, the traditional "open |
door" theory of China trade would /
be maintained. Since then. much has
happened-notably the creation of
the Rome-Berlin-Tokyo axis, which
makes Japan an ally of Germany
and Italy. both in commerce and in |
potential war And Japan has grad /
ually changed her tune in talking :
to us, the French and the British. In /
Japanese-seized China ports and |
commercial centers, U. s., French J
and English businessmen are being
politely but ruthlessly squeezed out.
And . few months ago came an Off
cial Nipponese announcement which.
though it was framed in the careful
Adh5udSC III llAc
Japanese statesmen excel, made il
perfectly clear that the "open door"
policy was to be much modified -
even to the extent that the Chinese
trade of other powers would be
stopped, or subjected to ruinous eco
nomic burdens, if the government of
the Son of Heaven so desires.
Thus a Japanese victory in China
would mean, in all probability, the
loss of hundreds of millions of dol
lars in trade to American industry
and, at the same time, would i'm
increase the economic re-
sources of an empire which our mil
itary leaders view as a potential
enemy in Pacific war. The Chinese l
armies have been steadily losing,
lue in large part to lack of money
and supplies, and it seems inevit-
.ble that an ultimate Japanese vic
Ory is a certainty unless Chang
is given what he needs. ?
rhe Treasury credit is apparently
designed to help him solve that vital
problem. The new International
echnique is to fight wars with the
Weapon of trade, before resorting to
he weapons of physical violence
md it seems that the relentless
'ress of events has at last forced us
o adopt that course of action, if
nly to a limited extent, as yet. q
%
The recent annual Congress of the n,
Iational Association of Manufacture W
rs-representative organization of \
.merica's Grade-A service and man. n
featuring industries-was princi- l.
ally publiciZed because of Anthony -
'den's address on democracy and S,
'Orld affairs. But other addresses Sc
lade there by business leaders, ~
ere notable. not only for what they n
aid, but for the very moderate tone Pr
ley took toward gOvernmental-in- he
ustrial differences and problems. SIX
In the words of Time, nm. A. NJ. -
as obviously sincere in its be- -
ef that it is now meeting the New vi
cal and Labor at least halfway" az
lmOst all of the speakers urged ci,
1nciliation. Typical expression of as
)inion came from the Associations ~, 9l
,tiring president, Charles r. Hook, fu
hen he said, Il believe in all sim
'rity that our activities during the ,' nn'
lst year have brought industry and ed
overnment substantially closer to
utual understanding. respect and ~
pifi
S- fol