Evening star., 1939-01-27

thing that happens across the At
lantic, and those who think we are
directly and indirectly affected in
an economic sense the moment any
thing occurs to unsettle the British
pound sterling in world trade.
Italy's victory in Spain is as much
Nazl or Fascist triumph as if the
Fascist armies had openly declared
war. The myth that civil war"
has been going on in Spain is
accepted by many here for technical
reasons relating to the question of
neutrality or the lifting of an en-
barge, but the fact remains that at
last Italy's participation in the
Spanish war has now become an
open threat to France. This in turn
involves Britain. Again Europe has
a crisis as significant as that which
preceded Munich
Whether a general war ensues or
whether the Fascist march continues
to encircle the rest of Europe, pene-
,trating certain influential groups in
France and. it may be, forcing seri-
Gus dissension in France itself, the
outlook for stabilized trade and cur
rencies is worse today than it has
been for three years. While it is
true that Americas foreign trade is
a small percentage of the total
national income, it is also true that
anything which unsettles a S5O0O,-
100000 exchange of goods both ways
across the Atlantic is a demoralizing
influence.
Little Help to Exporters.
Some branches of trade, such as
airplanes, are benehting by the
European preparations for war but
the prospect of depreciating units of
currency can hardly be of immediate
help to American producers whose
prices for export will seem higher
to European buyers or to American
producers who must compete with
goods made abroad and coming into
America which become lower in
price as they are expressed in Amer
lcan dollars. 1t is equivalent to a
tariff reduction. Certainly the situ-
alton presents a puzzle as to how
Kaleidoscope changes of this kind
could ever be dealt with under a
system requiring Senate ratification
OF reciprocal trade agreements, such
as now is being urged in the Senate
In lieu of the flexible executive
agreements which now are in force.
and permit prompt adjustment by
the State Department to fuctuating
conditions abroad.
1t may be, of course, that the
United States Government can do
nothing about the approaching crisis
except to wait for overt acts to
American trade, and it may be that
the proponents of complete stoppage
of trade on the high seas so as to
prevent all possible ENHANCEMENT
with European nations will have
q majority of both houses of Con-
gress. But if this is so, it appears
difficult to understand how those
who vote against American par
ticipation in foreign trade when en-
dangered can also vote to cut down
relief appropriations through the
w. P. A. to take care of the un-
employment which will come as a
consequence of our self-enforced
isolation policy.
Greater Need FOreseen.
1t Is because the real sentiment
here favors doing anything and
everything to keep America out
Of war and out of even indirect par
ticipation in European affairs that
one may foresee the greater instead
of the lesser need for W. P. A. ap-
preparations. Up to now the main
argument for refusing to grant the
full w. P. A. appropriation Of
s875, 100000 asked for by the ad-
ministration has been that recovery
was coming and that $725 100000 is
enough. Nobody is able to foretel
what the unemployed rolls will be
two or three months hence. Ir-
respective of what Congress does or
the w. P. A. appropriation, a few
months hence if Europe is in q
turmoil and world trade is suffering
sharply, none of the figures sug.
gested for relief may be enough
whereas some not now foreseen force
which can assure peace in Europe
and stabilize world trade Woulc
relieve the American taxpayers o1
the burdens they are going to carry
to pay the relief bill Mussolini
words of elation over what Italiar
troops have done in Spain, France:
warning through her foreign secre.
tary that foreign troops must ge
out of Spain, Nazi conspiracies tt
upset the government of Rumanis
where important raw materials