Evening star., 1940-12-29
By Charles G.. Ross.

D. r. Fitzpatrick, Pulitzer Prize
the question that is uppermost in til
year dies.
the subjugated countries furnishing the
raw materials. All will be required to
dovetail their industries into the Ger
man economy. Gold will have no place
in the Nazi scheme of things. All for
eign trade will be state controlled and
will be on a barter basis. For the set
tlement of balances between nations, an
international position will be sought for
the mark, as substitute for the pound,
but the mark will not be currency in
the old sense. The Germans speak of
the mark and the Ira in this connection,
but they mean the mark. 1t is not likely
that Italy will be free agent. Trade
by barter is usually thought of as BIZ
lateral process (between two nations) but
the Germans expect to work out system
of multi-lateral clearances.
Berlin will be the clearance center
and Germany will be the buyer and the
seller for the whole bloc under her con-
troll.
This is the Germany Of the future, If
she gets control of the seas, as it is the
Germany of today in the areas under
her rule
Why is it said that regimentation in
this country, to a degree perhaps sub
versive of our democratic institutions,
would follow the conquest of the seas by
Hitler?
Because we must pursue one of two
courses: We must either let our foreign
trade go, retire within our walls and
build up a strictly nationalist economy,
or we must fight for our foreign trade
with Hitlers weapons. In either case
we shall have a state control of industry,
of our whole economy, far beyond any
thing attempted by the New Deal.
Foreign Trade Quite Important.
Consider the first of the alternatives
the sacrifice of our foreign trade. 1t is
said by some that our foreign trade,
being only 10 per cent of our production
in normal times and less than that today,
is of small importance. And so it would
be if the 10 per cent or less were spread
evenly over the whole field of production.
But included in this 10 per cent of the
total are such items as so per cent of the
cotton crop, large percentage of the
tobacco crop and heavy percentages
under normal conditions-of such things
as machine tools, automobiles, office sup
plies and refined petroleum. Moreover,
the last 10 per cent in any field of pro-
duction may represent the difference be-
tween profit and loss. The loss of foreign
employment. and unemployment has
been at the bottom of all our economic
troubles
Our reciprocal trade policy was
adopted, under the prodding of Secre-
tary Hull, on the theory that substan-
tial foreign trade was necessary if we
were ever to recapture prosperity in
free enterprise system.
Henry A. Wallace, the Vice President
elect, former Secretary of Agriculture,
told in his pamphlet, America Must
Choose" Q934), what devastating effect
a policy of nationalism would have on
agriculture. Under .nationalism, he said,
retirement of from 40 million to 100 mil
lion acres of crop land.
Prosperity under nationalism could be
achieved, of course, but only through the
acceptance of governmental controls far
more onerous than any we have had.
One may also wonder whether the ex-
ponents of nationaism in the higher
income brackets have considered that an
inevitable part of the program would be
drastic redistribution of wealth.
Alternative Is Great Trading Bloc.
The alternative to nationalism in a
Hitler dominated world would be to
fight Hitler with his own weapons So
much has become known of Hitler and
his methods that the point would seem
to require no elaboration. AS soon as
possible he would begin his economic
penetration of Latin America. As the
buyer for the European bloc, Hitler
would dictate the terms of trade to any
one of the Latin American nations, or to
any group OF them less powerful than
the German combine. All trade would
be on the clearance, or barter. basis If
it is doubted that Latin America, eco
nomically, would fall into his lap like
ripe plum unless effectively organized
against him by the United States, con-
slider the vast stake that this region has
in the European market.
Clearly, If Hitler wins and gets con-
troll of the seas, and we decide to avoid
the pains of nationalism by competing
with him for foreign trade, we must
adopt methods akin to his own-fght
fire with fire. And we can only do this
under the auspices of the Government.
We must have the cooperation of Latin
America in the formation of a great
trading bloc-a sort Of America, Inc, to
compete with Germania, Inc.