Evening star., 1940-01-11

Critics Of Administration
Policy Charged With
Misuse of Focts'
The full statement by Secretary
Hull before the Committee on
Ways and Means OF the House
today tollo,Ds::
Mr.. Chairman, members of the
committee: 1t is always a pleasure
for me to appear before the Ways
and Means Committee, of which I
was myself a member for 18 years.
I particularly appreciate the op-
portunity thus afforded me to discuss
with my old friends on the COM
mittee and with its newer members
important problems of economic
policy, the successful solution of
which is essential in promoting the
welfare of our Nation and the we'll
being of our people.
Outstanding among these problems
Is that of foreign trade and of its
essential relationship both to our
domestic prosperity and to world
peace. This is something with which
we are all deeply concerned. This is
something which requires the best
cooperative and foresighted efforts
of both the legislative and the
executive branches of the Govern
ment, If the interests of our people
are to be properly served. In mat
ter which is so vital to the Nation.
political considerations and partisan
ship should have no place.
I.
In 1894, our Nation embarked upon
the reciprocal trade agreements pro-
gram as an emergency means OF
meeting grave emergency conditions.
In inaugurating that program, the
Congress and the Executive were
graphing with the pressing needs
and deplorable conditions, here and
abroad, with which the Nation was
confronted.
Our country and the world were
still facing the difficulties and dis
tress resulting from the worst
economic depression of modern
times. That great disaster had re-
suited from many causes, chief
among which we're the economic
policies pursued by the nations of
the world, including our own, since
the end of the World War.
The four-year war had taken a
frightful toll of suffering and
destruction. 1t had left in its wake
profound Embellishments and dis
locations. Postwar reconstruction
required the fullest possible utiliza-
ton of the natural resources OF the
world and of the marvellous achieve
ments of science and technology
for the purpose of repairing the
ravages of the war and OF laying
the foundations Of economic progress
and stable peace. This could have
been accomplished only through
vigorous and mutually advantageous
trade among nations, the only
practicable method of bringing with
In the reach of all nations the
advantages of natural resources and
of human skills, so unevenly dis
tributed over the face of the earth.
Instead, the nations of the world,
including our own, entered upon
the road Of narrow economic
nationalism. They built up a con-
stantly extending network OF dis
ruptive trade restrictions and, IN
this manner, piled new and even
more painful dislocations upon the
profound Embellishments produced
by the war.
PrecariOus Structure
Bound to Collapse.
For a time the true nature OF the
situation was obscured by the reck-
less international borrowing and
lending which characterized the f1rst
decade after the war. But the
unhealthy structure, built on these
precarious foundations, was bound
to collapse sooner or later ana
to spread ruin to all phases OF eco
nomic life everywhere.
The signs of approaching disaster
were plainly visible for some time
before the collapse actually came
at the end of the 20s. In the face
of this terrifying prospect, and even
after the calamity was already upon
us, the statesmen Of the world. in
cluding our own, made the fatal
blunder of resorting to the very
thing that lay at the root OF the
disaster-a still more exaggerated
protectionism. Trade barriers OF
every kind, old and new, multiplied.
Unstable surpluses became damned
up everywhere. Combined with
other factors, the drastic decline
of international trade in both VOL
ume and value caused the great de-
preston to spread in extent and
Intensity, with results in terms OF
widespread human suffering and
sacrifice that none of US can ever
forget.
Prosperity Tied Up
With Foreign Trade.
Contrary to all theories OF au-
tarchy and economic self-contain-
ment, the fact is that the domestic
prosperity of every country is tied
in with the condition Of its foreign
trade. A collapse Of foreign
markets inevitably brings with it
disorganization and disruption OF
the domestic ecc. omy, as we dis
covered to our sorrow in the period
following the enactment of the
Hawley -Smoot tariff. In this coun-
try the i'll effects of the collapse
of export outlets for the great sur
plus-producing branches Of both
agriculture and industry rapidly
permeated all branches of our eco
aomic life. Even those very indus
tries which thought they were saw
ing themselves by means Of embargo
tariffs soon discovered that, instead
they merely helped to ruin their
own markets right here In the
United States.
In those tragic days, when the
avalanche of economic dislocations
ivetn Nhonc