Evening star., 1939-01-15


Roosevelt's message to Congress has
aroused almost as much interest, and
even apprehension, among anti-demo-
cratic states as his proposal for vastly
expanded armament program. 1t is that
in which he delicately, but unmistakably,
limited that the tremendous financial
and economic strength of America may
be used as an instrument short of war
to punish an aggressor.
Already, it is learned, certain foreign
ENJOYS have attempted, through the cas-
ual sounding-out OF American officials,
rather than formal inquiry to the State
Department, to find out just what meas
ures, concretely, Mr.. Roosevelt had in
mind. No official anEwer can be given
them, for the President spoke in gener-
alities and the administration is not
prepared to lay down in advance any
chart of punitive measures.
Interested foreign nations may gain
fairly clear idea OF what the President
can do, without asking Congress for new
powers, by study of the Tariff Act of
1890 and the Emergency Banking Act
of March, 1888. And nothing, of course,
prevents him from seeking additional
powers if they are necessary to deal
with aggression.
Aggression Undermines All.
The presidential dictum which has
caused such concern among the ENJOYS
of totalitarian states was contained in
two brief paragraphs:
1--WE have learned that God-fearing
democracies of the world which observe
the sanctity Of treaties and good faith
in their dealings with other nations,
cannot safely be Indifferent to interna-
tional lawlessness anywhere. They can
not forever let pass, without effective
protests, acts of aggression against sister
nations-acts which automatically un-
dermine all of us.
obviously they must proceed along
practical, peaceful lines. But the mere
fact that we rightly decline to intervene
with arms to prevent acts of aggression
does not mean that we must act as if
there were no aggression at all. Words
may be futile, but war is not the only
means of commanding a decent respect
for the opinions of mankind There are
many methods short of war, but stronger
and more effective than mere words, of
bringing home to aggressor governments
the aggregate sentiments of our own
people"
Nations like Germany, Japan and
Italy, remembering that the economic
and financial support given to the allied
nations by the United States during the
World War was primarily responsible for
the defeat of the central powers, cannot
fail to be affected by the Presidents
words. This is particularly true be-
cause the weakest section in the armor
of the totalitarian countries is their
economy. Though heavily armed, their
gold reserves are negligible, they are de-
pendent on imports for several vital
military supplies and are further de-
pendent on foreign market for their
own exports to obtain foreign exchange
to purchase these necessities of war
abroad.
Economic and Financial Weapons.
The economic and financial power of
the United States might be used against
aggressor nations under two sets of cir
cumstances, both of which the President
presumably had in mind:
l. To aid friendly foreign nation or
coalition, short of actual military sup
port, in case of unprovoked attack by an
aggressor nation or coalition.
2. To strike punitive blow at for
eign country which was prosecuting
American nationals, violating treaties to
which the United States was party or
unjustly discriminating against Ameri-
can commerce.
There has been no official indication
| as to whether the administration intends
| to use its economic and financial weap-
ons now or whether the President merely
was indicating the possibility of their
use in the future if the policies of the
| totalitarian states became even more
aggressive and inimical to American in
terests. Most observers believe that he
had reference to the future.
What, specifically, are the economic
and financial big guns in the White
House arsenal?
| One of the most effective is the power
| given to the President under Section
1888 of the Tariff Act of 1890 to increase
American tariffs against or even place
an embargo upon the goods of any ma
ton which discriminates against the
commerce of the United States.
State Department officials have be-
Neved for several years that the import
quota system applied to German imports