Evening star., 1940-05-23
Tighter Government
Control Pictured as
War Aftermath
Chaos to Be Alternative,
Dr.. StoIey Tells
Session of Economists

A group Of economists and author
ities OIL international affairs looked
into the future last night in a vain
search for some hope that the
world might make a satisfactory
economic adjustment following this
war
They participated in a panel dis
cussion on the Economics of the
Next Peace" at the eighteenth gen.
eral meeting of the Academy Of
World Economics, held at the United
States Chamber of Commerce Build
ing.
DR.. Eugene Staley, author and
professor at the Fletcher School of
Law and Diplomacy, Harvard Uni
versity and Tufts College, delivered
the principal speech, in which he
outlined the economic conditions
which would have to prevail before
there could be any hope of con-
tlnuing peace and prosperity.
Those who dislike government
control as we know it now will
have to choose between government
or inter = government management
and chaos-which will bring some
form of communism or fascism," he
warned
Sees Greater Managed Economy.
mo matter who wins this war
! or how long it lasts, the postwar
world is bound to be a world of
economic dislocation, a world of
great economic blocs larger than
present-day national states, and
world of managed economy to de-
gree never before seen in modern
times.
This is the economic environ
ment within which United States
foreign policy will have to operate.
The major interest of this country
in foreign affairs is to see that con-
ditions are favorable for the peace
/ which follows this war to be a dur
able peace-more than a truce"
He then pictured three economic
conditions which he said must be
met if the peace is to be lasting.
First, DR.. Staley stated, artificial
/ political boundaries must be re-
moved as barriers to international
trade-dooming economic isolation,
high tariffs, etc.
Second, all nations must cooper
ate to achieve some sort of stability,
which will guarantee employment
and steady flow of money. He
suggested coordination of public
works programs and monetary poll
cies and international cooperation
to supervise the control schemes
which now regulate such world
staples as cotton. wheat, rubber, tin,
coffee, etc.
Third, he suggested well-planned
program for development of back
ward regions, to assure more con-
sumers. Such things as "T. v. A.
of the Yangtze River Valley" a
program to develop Africa and in
dustrialization of South America
were suggested.
He found little real hope that
such conditions would be estab-
lished, no matter which side won,
and most of the others participat-
Ing shared the view.
DR.. Staley opened his talk with
the contention that the policies fol-
lowed by the United States since
the World War had been largely
responsible for bringing on the pres
ent war.
This statement was attacked with
vehemence by several members of
the panel which discussed his talk.
Members of the panel were:
DR.. Herbert Wright, professor of
international law at Catholic Uni
versity; DR.. Cleona Lewis, economist
at the Brookings Institution; DR..
Amos E. Taylor, professor of eco
nomics at American University; DR..
Wilfred A. Parsons. S. j. dean of
the Graduate School at Georgetown
University; DR.. Oscar Garcia
Montez, professor of political econ
omy at the University of Havana,
and Fulton Lewis, jr., radio COM
mentator.
The academy, in presenting the
program, had the cooperation of
Delta Phi Epsilon, national foreign
service fraternity.