Milford chronicle., 1940-05-03


Latest trend in the war is the AL.
lies announcement that they plan to
tighten and extend their blockade
against Germany That announce.
ment has sent chills up and down the
spines Of statesmen Of the smaller
European neutral powers, Of which
the Scandinavian countries are most
directly affected On top OF that, the
economic repercussions will be felt
throughout the world-includin the
\ remote United States.
The Allied action Is completely un-
derstandabie. The old technique of
war has apparently become obsolete
mo longer can masses Of land
troops be sent in vicious offensives
against the enemy. In the light OF
| present day Qualifications such as the
Westwall and the Siegfried line, mil
itary experts believe it would be sui
cidai for any belligerent to attempt
70 determine the issue with infantry.
Air power has not yet demonstrated
that II can win the day-Germany
still talks of blitzkrieg, but seems un-
willing to take the risk of trying it.
The result is that economic pressure
and that means, primarily, starV-
ing the enemy II pOssible-is today
the most active of fighting weapons
So far, the greatest Allied effort
4 has been given to cutting of Ger
many's supplies. And so far, the
greatest German effort has been
given to creating new sources of sup
ply to offset those which the Brit
ish Navy, aided by the much smaller
French Navy, has been able to de-
sirOy, The upshOt is that the Allies
control the oceans, but It is not
enough, German freighters work
their way down the difficult Nor
wegian coast, staying within terri
t0rial limits, and come home with
vitality needed materials. And sup
plies have been bought in incredible
Quantities by neutral powers to be
lreshipped to the Reich
A good example Of that can be
found at home, Our direct trade with
Germany has dropped to the vanish
ing point. Yet our trade with Russia
and the smaller countries which
share common frontiers with Ger
many has increased vastly. Accord
Ing to a New York Times account,
since October. Russian has been
spending $10,OO0.000 a month In this
country, and most Of the money has
gone for metals and other essential
Materials of war. II is an ironical
fact that Russia has bought large
Quantities OF tin here, obviously act
ing as an agent for Germany-and
that tin came in the first place from
the Straits Settlements. a British
possession. The British government,
says the Times, regards this 'as a
breach Of faith on the part of Am
erican exporters
Allied plan Is to restrict neutral
imports TO a normal which is based
on pre-war cOnsumption. They will
rot be permitted to have more, even
IL II becomes necessary to send Allied
war ships into nentral waters TO
seize the c0ntraband. And contra
band control, the Admiralty in Lon
don has grimlY announced, is now to
cover the Pacific as well as the At
lsntic.
This viii cost U. S. businessmen
orders-yet, SC strong is Allied sym
pathy in this country, there seems
little likelihood of any significant
protests. The Federal government
apparently tacitly approves the Allied
piogram. Big blow-up has taken
place In Europe ia Scandinavia and
the. Balkans, where both Allied and
German diplomats are working at
fever heat to win favor and support /
Norway has ANNOUNCED that interfer-
ence with shipping on her waters
may plunge her into war-Norway is
key point of the controversy and is /
nj an incredibly difflcuit position, \
being subjected to a tightening |
squeeze from both sides. And Ger
many has ominously demanded that
the little neutrals state their posi-
tlons-or else.
AS the situation appears now, Brit 4
ain seems to possess the edge in eco
nomic warfare-she has the money
and the ships, though she is spending
he money dangerously fast At the
same time, Germany holds a domi-i
nant military advantage in the Balk-
ms and Scandinavia. Anything can
-and it looks as IL the little
Countries will be the principal los
srs, no matter which way the tide
-uns.
Business Is marking time. The
downward trend evident recently has
ieen checked in most lines, but na
significant upward trend has yet ap-
,eared.
Steel production is at a materially
over level than last year-due
afgely to the fact that production
vas. ahead Of consumption in 1899
Automobile production is running
head OF the level Of a year ago. and
ate estimates Indicate that 4.250 900
ars will be made this year. as
gainst 1880, 900 in 1889.
Domestic construction goes ahead
his years houses generally are
mallet and slightly cheaper than
ast years houses The result Is that
ihile more dwellings are being
rected. the total value is somewhat
sss.
Most businessmen have given up
ope Of any big war boom" This
me Allied purchasing Is orderly.
I'D excessive prices are not being
1ered.