Evening star., 1940-08-04
Discounts German
Propaganda Efforts
By ODen L. Scott.

The stories told are these Gold will
neck of the United States There will
be no markets in Europe for American
farm and other products Latin America
will be forced to look to Europe as an
outlet for surplus products and as sup
pller OF the things Latin Americans need.
only II Germany Is given voice in
American trade policy and in the affairs
OF Latin America can the United States
f1nd basis for collaboration that will
yield ticket to the new heaven of totali-
tartan trade.
The response here: Chancellor Hitler
Is whistling in the dark. Latest propa.
ganda represents more wishful thinking,
more evidence that the Germans don't
know what Is in store for them.
Take gold. 1t Is true that the United
States soon will possess just about all
| of the gold in the world above ground.
1t also is true that the future of gold as
governor of world exchange is uncer-
tain to say the least. There is no doubt
but that this Nation has been something
OF an easy mark in taking all of this gold.
But the official view here is: What of it :?
The gold is on hand and the goods that
the United States is giving for gold have
been given or are being given The
effect of this exchange has been felt al
ready and the gold now is buried again
so that there really is no gold problem.
This Government will continue to buy
gold so long as that policy will help the
British, who are exchanging their gold
| for American war materials. If and
when the British run out of gold or are
! defeated in war the gold buying policy
| here will end so far as American pur-
chases are concerned at the price of s35
an ounce.
Then take Europe's trade. This trade,
| including that Of great Britain, amounts
in normal year to about 81 500 900 900
of American products. That sum repre-
sents an appreciable volume Of farm and
industrial products. Yet it need not be
vital when the fact is considered that
the national income of the United States
amounts to between $4,000 900 900 and
$4,000 000,0 900 year, With moderate
amount of internal planning this Nation
can overcome the effect of lost European
markets and open up much broader mar
kets within its own boundaries and with
! in the boundaries of this hemisphere.
When Hitler tells the United States
that there will be no return to normal
IN world trade, and when he lets it be
known that the markets of Europe are to
be closed to American goods, this should
convince even the most vehement advo-
Gates of a return to the good old days
that there can be no such return Once
that conviction is established in the
| United States the way is laid to a realistic
appraisal of this country's problems with
view to their solution. This solution
will require a much broader use of the
| powers of Government to guide and to
regulate internal industry If Hitler
forces this Nation into isolation then the
United States must apply to its own
problems the formula Of economic oper-
alton that isolation calls for. This for
mula involves the planned use of capital
and industry and labor. No area in the
world is better adapted than this one
to the successful application of that
formula.
Or take Latin America. The Ger
mans must exploit the resources of Latin
America if they are to obtain the raw
materials they will need in operating
conquered Europe. Hitler is warning
| this country to let Germany alone when
she undertakes that exploitation. The
| United States is making it abundantly
| plain that Germany will not be let alone
if she starts to use methods in this hemi-
sphere that have brought about the
! downfall of nations abroad. Here is
| threat Of trouble and in meeting this
troubie-Whether economic or military
the United States will have formidable
weapons.
This country can offer free markets
for many of the products of Latin Amer
ican nations. 1t can offer abundant cap
ital that can be utilized for internal de-
velopment. It's range of products is
greater than any Germany can offer. 1t
attaches few, if any, political strings to
its trade. It's Navy and air force repre-
sent instruments of power that even
Hitler will have to recognize. The United
States is vitally interested, for defensive
reasons, in all the area down to the
Panama Canal and beyond.
The real fact of the matter is that it
will be Germany whose problems will be
most acute after victory.
The real plums of conquest will not
fall to Hitler The immensely rich
Dutch East Indies and British Malay
States are coveted by Japan and will be
protected by the United States and by
units of the British Empire so long as
control can be maintained on the seas.
Certainly that area is not to go to Hitler.
Japan is prepared to absorb British and
French interests in China, leaving Hitler
out II Germany has any designs on the
riches OF Canada she can forget them.
There is loot amounting to $4,000 900 900
or $4,000 100000 within the United
States. representing investments of Brit
ish, Dutch, French and other peoples,
that Hitler will want, but won't get. He
Will find the going bit tougher than he
expected in Latin America.
OF course there will be Africa. But
Mussollni has his eye on the richest parts
OF that continent, and this can become
the basis for fight between the two die
tators. If Hitler has Russia in mind, an
operation in that direction can occupy