Evening star., 1940-07-22
Bank
Continued From First Page.)

there shall not be a disorganized
or cutthroat market in those COM
modities which we all export"
Aim to Limit Fluctuations.
Apparently needing criticism that
controlled Western Hemisphere
trade program would amount in the
end to the same thing as the Ger
man totalitarian sort of control,
which the United States is seeking
to avoid, the President said:
mo sensible person would advo-
cate an attempt to prevent the nor
NAL exchange of commodities be-
tween other continents and the
Americas, but what can and should
be done is to prevent excessive
fluctuations caused by distressed
selling resulting from temporary
interruption in the flow of trade,
or the fact that there has not yet
been established system of free
exchange.
Unless exporting countries are
able to assist their nationals, they
will be forced to bargain as best
they can"
Although he indicated that he
thought the war and the German
triumph might be shortlived, the
President made it plain in his
message what extraordinary factors
in world commerce prompted him to
make today's request.
The course of the war, the re-
sultant blockades and counter block
AIDES, and the inevitable disorgani-
zation, is preventing the flow of the
surplus products to their normal
markets.
Distress May Continue.
necessarily this has caused dis
tress in various parts of the New
World, and will continue to cause
distress until foreign trade can be
resumed on a normal basis, and
seller of these surpluses is in
position to protect himself in dispos-
ing of his products.
Until liberal commercial policies
are restored and fair trading on a
commercial plane is reopened, dis
tress may be continued"
Mr.. Roosevelt said that in view
of these conditions the directors of
the bank should have a free hand
as to the purposes for which loans
are authorized and the terms and
conditions upon which they are
made"
The message was empty of de-
tailed analysis of the technique by
which the American surplus prob
lem might be handled. That ques-
ton apparently is to be settled by
the administrations principal for
eign trade, foreign policy and South
American expert advisers.
Jones to Aid Request.
Jesse Jones, Federal loan admin
istrator, in whose province the Ex-
port t-Import Bank lies, will appear
soon before the House and Senate
Banking Committees to explain in
larger terms the Presidents aim
and to speed the request into law,
Acting Secretary of State Welles
told his press conference today.
Mr. Welles said he considered the
Presidents message another indica-
ton of the very earnest desire of
this Government to cooperate with
the other republics in this time of
stress in the most practical way pos
sible. He said the move was very
significant and very practical.
AS a corollary step toward ce-
menting the inter-American rela-
tionship, it was indicated that action
is contemplated soon for United
States ratification of the inter-
American Bank Convention, which
would oil the fiscal machinery of
the western hemisphere.
Half a billion dollars would. be al
most enough money to purchase
the whole foreign trade of the 20
Latin American republics as re-
ported in the last normal year, 1898.
Two of the principal present re-
strictions on the banks operation
limit the aggregate outstanding
amount of loans to any one foreign
country to $4,000, 900, and a pro.
viso that the bank shall not make
loans to any government in default
to the United States as of April
l3, 1894 the date of the enactment
of the johnson resolution), or for
the purchase of any articles, excep.
aircraft exclusively for commercial
purposes, listed as arms, ammuni-
tions or implements of war by the
President under the Neutrality Act