Evening star., 1939-09-21
Allies Likely 10 Get
Corner on U.S.. Supply
By Embargo Repeal
Plenty Of Cash and Ships
Favor Britain, France;
Blockade Stops Nozis
BY COL. FREDERICK PALMER.

oloCkooe Drops NoZlS
BY COL. FREDERICK PALMER.
Accessibility to the market and
money to play the bills determine
which belligerents will be helped
and handicapped if Congress repeals
the arms embargo provisions of the
Neutrality Act. In this, regardless
of new and improved weapons, World
War precedent applies. Cargoes of
guns and shells cannot be carried
by plane or submarine through
the British blockade.
Britain has ample funds with
which to pay cash and ships for
carrying. Her capital investments
cover all the lands bordering on the
seven seas. They represent from
two to three billions of dollars in
the United States. In Asia she has
nearly three billions in India alone,
not to mention China. Ceylon and
Malaysia, and more billions in Aus
tralasia, Canada, Africa and South
America. The total is at least IS
billions. All these are now under
government control as capital to
finance long war.
Under the British flag, more than
half of the worlds new gold is mined.
Any war prohteers who wax rich will
buy their diamonds from Britain,
which owns practically all the worlds
diamond fields.
Britain had a gold reserve of ST.
161 100000 on September S, when it
was transferred to the exchange
equalization fund. France, which has
from three to five billions of foreign
Observation-Disclosures are difficult to
get-has gold reserve of $2,7O9 ,0OO,-
600.
Germany's Investments Negligible.
Germanys foreign investments are
quite negligible. since she has al
ready requisitioned those in private
hands. She produces no gold. At
last accounts, her gold reserve was
s29 100000. Italy's was $193OOO,O0O
and Japan's $l63,000, 900.
Though the sea paths were clear
for her. the Reich has no money
with which to buy war materials
from us. With her ports barred for
exit or entry by the blockade, she
cannot pay through a balance of
trade or by her barter system, which
Is now about to have a war test.
Germany is fighting on a financial
shoestring, while Britain is stupen-
dously rich, and France is rich, too.
in collateral. No one knows how
much gold and silver coin the
thrifty French peasants and shop
Keepers have in their stockings and
buried in their cellars and hidden in
their attics. Some was doubtless
spent by American soldiers who were
"over there" in 1917-18.
Russia Is Reich's Hope.
For raw materials, the Reich's
hope*is tapping Russian resources.
She has none of her own except
synthetic substitutes for oil and
rubber which supply the fuel and
tires OF mechanization. She has
coal and iron ore, but needs the ore
from Sweden, accessible to Britain.
and manganese from Brazil, from
which she is cut of by the blockade.
Britain has oil, coal and iron. oil
in her Mesopotamian fields. and
supplies us much of our rubber from
her Malayan plantations. The
French hold the Briey iron fields and
her northern coal fields, which she
lost to the Germans in their drive
into France in 1914, and French
gunfire must make mining very un-
comfortable in the Saar Basin.
And Britain and France not only
have all the resources of their en-
pres to serve them to hold out in
a long war. They have too those of
all the rest of the world while car
goes from abroad pass safelv
through the submarine DANGER zone
All that Is contraband for the Reich
may be theirs.
The contraband list is amazing in
its range. Along with weapons and
ammunition, all that the worker in
a munition factory or the miller who
grinds the flour for the soldiers
bread needs for his daily existence
also is included in the materials of
war.
Plenty of Food and Arms.
We have more wheat, corn, meat,
more cotton than we require. Our
grainf1elds and mines are capable of
far greater production. Our manu-
featuring plants are fooled for turn
Ing raw into finished materials.
When planes are needed to meet the
heavy wastage, we can send them
overseas if the Neutrality Act is re-
pealed or amended. We shall also
make weapons and shells.
And labor? Polish prisoners are
being put to work in GERMANY to
make up for the shortage. There is
already shortage in Britain and
France. The old issue between more
manpoWer at the front and labor to
make munitions will soon be acute.
We have an estimated 10 millions
OF unemployed. Their energies and
skill will be in support of the allies
in supply, if not in action. In
1914-15-16 our production was all for
the greedy market of the allies.
Therefore, We went into the World
War without adequate weapons of
any kind, under q handicap which