Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-10-14

Total So, 465. 900 900
It is tidy sum- 1t represents that
much money which Soviet Russia
In the Baltic states and Germany
everywhere else did not manage to
pocket when they swept into the
victim countries. 1t is being kept
for the nationals of these countries
and will be given back to them as
soon as their states recover their
independence.
Small Portions Available.
Under certain conditions small
portions Of it are already being
made available to their private
owners. Refugees from victim
countries with money here can re-
cover enough of it to keep alive.
Relatives Of persons in victim coun-
tries can send them small remit
tances, provided they were accus-
toned to making such remittances
before their countries were over
run. But for the most part this
money is being kept inviolate until
UllC ody WHICH, WILL lldNC
been elected.
incidentally, If that day never
comes, the United States Govern
ment has its hands on sufflcient
funds to make good any claims in
case Americans are unable to COL
lect damage for injury received in
those countries.
But that is very secondary mo-
tive in setting up the foreign funds
control. The primary motive is
what might be called the imple-
mentation of the Stimson doctrine
Of non-recognition by this country
of territories acquired by force.
Since we do not recognize the right
of the conqueror to seize and ap-
propriate what he pleases, 1t is
proper that we should, so far as
possible, protect the victim. The
same procedure of temporary Sc
quester would have been applied to
the investments of Czecho-S lovaNa
had not the Germans moved too
quickly, and those Of Poland, had
there been any.
Leakage Is Small. ...-.
In deeds as we'll as in words, this
country stands for the protection
of the victims of unjust aggression
and. according to our code, no ag-
gressor can be anything but unjust
Obviously, the American proce-
dure cannot give watertight results.
So long as there are neutral states
like Switzerland and Yugoslavia
into whose hands the investments
Of invaded peoples can sometimes
be fraudently transferred without
DETECTION, there is bound to be some
leak, but it is admittedly small.
What may prove to be the pri-
mary value of the foreign funds
control lies elsewhere. In practi-
cally every case of invasion this
country has suffered harm in its
investments abroad at the hands of
the aggressor. A recent case Is al
legged to be the transfer from France
to Germany of machinery belong
ing to the Matford Co., in part
owned by Henry Ford, without
proper compensation.
So far. the administration has re-
Trained from the sequestering of the
assets OF the aggressors themselves.
U. S. Has Seizure Power.
But it possesses under existing
legislation full power to do this. Ger
many, Japan and Italy all have in
vestments or deposits in this coun-
q ~
$4,000 900, $102 900 900 and $79,-
00O,0O0 These funds can be seized
by executive order if the occasion
arises. Now, admittedly, such action
would provoke the seizure of Ameri-
can investments. These investments
In the three countries are undesir-
ably larger than their investments
here, totaling s607 100000 in Ger
many. $3.50 100000 in Japan and
s144, 100000 in Italy. Seizure for
seizure. the United States would lose
by the transaction.
But aside from the fact that
American investments in Germany
are considered as virtually lost any,
way. politically this country would
be decidedly the gamer. For 1t is
in part with the foreign exchange
derivable from the liquidation of
investments here that Germany,
Japan and Italy are able to carry
on their present unholy wars. Freez-
ing their funds here might result in
some financial loss, but if it led to
. weakening of the war effort of
those countries, it would unques-
tionably be approved by the ma
Jority of our citizens.
tcopyriEht. N194o, by the Chicaso Daily
News, Inc)