Evening star., 1940-06-02

In 1888 American exports to Europe
were valued at more than 81 800 900 ,QOe>
In addition to raw materials such ~
cotton, the United States ships to Europe
large quantities of finished manufac-
lures and specialties such as type
writer's, office equipment. appliances and
foodstuffs, both crude and manufac-
tured. Europe, too, in normal times, Is a
large buyer OF American automobiles. In
the aggregate, therefore, the European
market is an important outlet both for
American manufactured products. and
agricultural surpluses. It's loss, either in
whole or in substantial part, would be
serious though not crushing blow to
the American economy.
Europe's Economy Shattered.
If Germany achieves an economic
domination Of Europe, the United States
may lose part OF this valuable European
market. Whether the Allies win or lose,
Europe will emerge from the present
titanic struggle impoverished and greatly
weakened economically. The destruction
of cities, the bombing of industrial areas
and the human and economic losses of
totalitarian war. are cxacting heavy toll
from the wealth and buying power OF
the belligerent countries.
Unless the war comes TO quick end,
Europe may face shortage of food, If
not an actual famine Millions of men
have exchanged the plow for the rifle.
and thousands Of families have been
driven as refugees from their farm
homes. In many parts of Europe, in
cluding Germany, :crops were short last
year. If Germany wins, and if there is
shortage of foodstuffs and raw ma
terials in Europe, the Nazi government
conceivably may decide that it has need
of American foodstuffs, raw materials
and manufactured products.
The United States exported to foreign
countries in 1888 goods valued at more
than s3,000000,000 Establishment of
German hegemony over Europe probably
would have important repercussions on
international trade in other parts of the
world. For Nazi victory would enhance
Germany's economic power and pres
tige elsewhere. BY the same token the
United States would face greater COM
petition from German goods in the mar
kets of Latin America, Asia and Africa.
BY barter arrangements and through
other methods Germany might be able
to undersell the United States in many
markets where this country now holds
the upper hand
~f I,,,t c.
had about s11 900 ,OCO Goo invested in for
eign countries. American investments
circle the globe.
Democracy on Defensive.
If the United States. as q result OF a
Nazi victory, acquired the British West
Indies and the American colonies Of
other European nations the acquisitions
would bring us no real economic benefits,
though their acquisition would make
somewhat easier the problem of hemi-
sphere defense Both the Virgin Islands
and Puerto Rico have cost the Treasury
pretty penny. In addition TO the cost
OF administration, this country would
have to meet the costs OF defending the
American colonies of European powers.
For upwards of century and a half,
Americans have had an sxiomatic faith
in democracy. Defeat of the two great
European democracies, Britain and
France, would for the fiES. time place
democracy, and democratic institutions,
on the defensive in the United States.
Though there is no reason for believing
that the American people cannot meet
the national defense and ot',,sr problems
OF totalitarian world unde. our present
form of government a victory for the
totalltarian c-----c-t abroau and the
failure of European democraCies to meet
its challenge. could hardly fall to have
important political repercussions on this
side Of the Atlantic. For tt.e world is
not made up of a series of uatertight,
isolated compartments Ideas both po-
litical and otherwise. recognize no terri
torial frontiers. If totalharianism,
measured by pragmatic test is sue
cess, there are sure to ho those in this
country who will urg2 The application of
Its technique to meet our econtmic and
social problems.
II Germany emerges the victor from
the present titanic struggle overseas, it
may take time, and good deal Of effort,
to consolidate her gains in Europe and
exploit the spoils of war in Europe, Will
the Nazis then seek aggrandisement
further afield? This question is being
widely asked in the American Capital.
If the Nazis decide to embark on . pro-
gram of world expansion, South America,
because of its large natural resources,
and its supply of raw materials, l. be-
lieved to be likely objective A 'Nazi
drive on South America, of course, would
offer direct challenge to our policy of
hemisphere defense. i