Evening star., 1940-07-28

Wide World Photo.
tive pamphlet called America Must
Choose" which vividly presented the
seeming dilemma then confronting this
Nation. He gave the reasons for and
against two extremes of possible ma
tional economic policies. one for inter-
national cooperation to find an outlet
for our surpluses. the other for estab-
lishment and maintenance of a tightly
protected. self-sufflcient economy.
Full international cooperation, he
said would require a radical scaling
down of tariff walls acceptance of ST.
900 100000 worth of goods more from
abroad and the widespread reorganiza-
ton of protected industries The second
course. he continued. would mean the
permanent withdrawal of more than So
100000 acres of fairly good farm land
from cultivation, and the probable licens-
ing fevery plowed field, together with
rigid discipline supplanting individual
freedom.
He proposed. however. planned mid
die way" modelled after the Swedish
solution as described in Marquis w.
Childs' book on the economy of modern
Sweden, with It's skillful planning of
co-operatives. governmental ownership,
large corporations and governmental
spending to check the fluctuations of
industrial production. His solution. an
avoWed compromise, called for the with
draWal of 25,000O00 acres of land and
the acceptance of s5OO,OOO,oO0 worth of
additional goods from abroad. the kind
to be determined by "horse-sense trad
ing" with other nations. In other words,
by the Hull trade agreement method
Advice Applies Today.
His advice. published more than six
years ago, applies today to war condi-
tions in Europe and the attempts at
closer Pan-American cooperation.
Let us get it straight in our hands,"
he declared, that We should not make
loans abroad until we have first achieved
a lowering of tariffs that will permit
repayment of our loans.
own tariff policy would involve the
careful examination of every product
produced in the United States or i'm
ported. and the determination OF just
which of our monopolistic or inefficient
industries we are willing to expose to
foreign competition. This problem should
be approached from the point of view
of longtime national plan which we
are willing to follow for at least 20 or
30 years. even if some of our friends
get hurt and howl continuously to high
heaven"
When this book was written, Secretary
Wallace, no more than any one else.
foresaw the rise Of Hitler in Europe or
the spreading militarism of Japan. While
he has not changed the main thesis OF
his pamphlet, he believes American trade
lines must now run north and south in
the Western Hemisphere rather than
east and west to Europe and the Orient.
Declaring that Democracy must de-
liver the goods" Secretary Wallace says
the United States is just entering "the
era OF general welfare" and emerging
from the period of individualism which
began In England around 1850 and
reached It's peak about 1860. As the
possessor of rich natural resources, the
energetic people of this country, he says,
must show the way to the rest of the
world, particularly to Latin America.
Economic democracy, he argues, must
make the Western Hemisphere strong
enough to withstand the political and
economic attacks of Hitler and the Nau
philosophy.
Speaking last month at Bennington,
VT, Mr.. Wallace declared:
THE Germans look on this hemisphere
as their eventual happy hunting grounds.
Once the leaders of the German regime
have stolen the soil Of Europe and
subjugated its people, they hope to
channel New World exports to Europe
through their own corporations barter
ing in such way as to create the maxi
mum of economic nuisance value, look
ing forward to eventual military pene-
tration.
Il am not defeatist enough to admit
that the German method is going to
win. But am realist enough to ask
what the world situation would be in
case it did win"
He then predicted that Q German
victory would result In four great