Evening star., 1939-07-24

that this correspondent interviewed
the same businessman just before he
went to the White House. The in
formation derived from the talk CO.
incided not only with what Mr..
Roosevelt later gave to the press, but
with data available at the Depart
ment of Commerce concerning the
nature of the trade of the United
States at this time.
The businessman in question is
the head of one of the most prom
inent firms in New York and is par
ticularly familiar with worldwide
cial markets. Asked what the
meaning of the stock market rise
was Immediately after the Senate
committees action, he declared that
there were such narrow" markets
these days, due to restrictions by the
S. E. c., that upward and down.
ward movements of a few points
failed to reflect major changes in
business. He added also that the
full effect of what the Senate For
eign Relations Committee had done
would not be felt right away.
Trade Seen Sufferer.
The thesis of the businessman,
who for reasons of his own pre-
ferred anonymity, was that Amer
ican trade would suffer. He re-
ferred not at all to actual munitions
Of war but to time exports.
His argument was that Britain and
France would not care to face the
uncertainties of the attitude of the
American Congress and wait till war
broke out to make their arrange
ments for war supplies, but would
begin to set up trade arrangements
now, in peace time, and that nat
urally other trade would be diverted
and America would lose not only
possible trade. in war materials, al
ways considered legitimate, but the
sale of other articles as well.
The American people, of course,
would gladly forego the loss of trade
If it means keeping America out of
war, but the query posed by the
businessman was what would hap
pen if business recovery were i'm
peded and there were no war and
America lost considerable normal
trade? Would the people blame the
President or the Senate Foreign Re-
lations Committee?
Unfortunately, of course, the ac-
tual course of our foreign trade as
it relates to war preparations and
to articles only indirectly related to
armament is not simple PROPOSE
ton to explain in terms of British
and French disappointment over
the SenateS action. The two things
are not likely ever to be clearly de-
fined. But the facts concerning
Americas trade in materials used in
war preparation are ascertainable
and they show that to no small eX-
tent economic progress this year has
been aided by this So-called trade
In war materials.
80 Per Cent Gain in Exports.
Thus materials which can be used
for war purposes showed total
export of S2,481 100000 during the
past three years or phenomenal
gain of 80 per cent, as compared
with the export value of 81 ,299 000,-
600 for such materials during the
preceding three years.
The value of our exports as a
whole during the same comparative
periods showed a gain of only 40
per cent
Exports of Woodworking ma
chinery, aircraft, rubber manufac-
lures, certain chemicals as well as
textile manufactures were larger for
the first five months of this year as
compared with the same period in
1888. 1t must be considered, accord
ing to the foreign trade experts,
that armament preparations now
adays include laying in of stocks
of foodstuffS that are not perishable,
minerals, petroleum supplies as we'll
as essential machine tools and parts.
Nor is this trade confined to Eng
land and France. Some of it gets
indirectly to Germany and some of
it with smaller countries which are
affected by the war fever and where
extensive military preparations have
been going on for some time but
have not attracted attention because
interest has been centered on the
major powers.
Harmful to Labor
These smaller countries have no
such sources of supply or manufac-
turing plants as the United States.
Heretofore America has stood out
as the one big powerful nation
which might be expected to remain
neutral herself and sell to any ma
ton which could pay for the prod
ucts wanted. Last week, however,
large doubt was cast on this pol
Icy. Foreign countries now must de-