Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-07-14
World Economic
Plan Studied
By Owen L. Scott.

Attention Of important officials and
diplomats here in Washington is turn
Ing seriously to an idea of world eco
nomic organization that long has re-
ceived some academic consideration.
That idea centers on four great group
ings Of the nations of the world for
purposes of trade and development.
The dominant economic unit in the
world, until recent years, was the British
Empire. The operating mechanism of
this unit was a liberal capitalism that
utilized the market place reacting upon
price measured in terms Of gold standard
currencies as the automatic control.
Now. depression and war and conquest
have shattered this system and It's pieces
are scattered far and wide.
In the place Of this free British system
are rising the controlled systems ofNGer-
many and Italy and Russia and Japan.
Government fiat in those nations, and in
nations they conquer and rule, takes the
place Of the free market. Controlled eco
Monies are the basis Of the new empires
that are rising. There are new groupings
that assure the United States place out
in the cold, when those new groupings
are completed. The result is that this
country is to be forced by events to con-
slider what its own place in the new world
will be, inasmuch as that new world
seems to be in the making regardless of
American desires.
Here enters the idea Of q division Of
. the world into four main economic units,
each guided by dominant power This
idea, as discussed among officials in
Washington, would call for the following:
First, a dominant position for the
United States in the Western Hemi-
sphere. Around the United States, as
satellites, would be Canada. the nations
of Central and South America and pos
sibly Australia and New Zealand. With
In this unit, currencies would be adjust
ed and tariffs brought under control
There would be machinery created for
handling the SURPRISES that would need
to be exchanged with the other world
groups-machinery such as President
Roosevelt even now is considering for
this hemisphere. Nearly 100000, 900 peo-
pie would be within this trading area.
Second, dominant position in Europe
for Germany-a position now being
established by force Of arms. Around
Germany would be grouped the nations
Of Europe and probably the continent
Of Africa. Economic ties already bind
the Balkan nations to Germany. The
French economy is In process Of adjust
ment to German plans. Italy and Spain
both are satellite powers. England, If
conquered, would be forced into the pat
tern of economic empire designed by
Hitler. Within Europe. Germany would
rule the economy and would draw to her
self the profits from the operation Of the
economic machine in an area Of 400,-
600 900 people.
Third. a dominant position for Japan
In the Far East-a position also now In
process Of establishment by force of arms.
Japan is out to build herself an island
empire, screening the mainland OF China
which she proposes to dominate and to
exploit. The Japanese are doing little
to conceal their interest In the Dutch
East Indies and the British Federated
Malay States. They have their eyes on
the Philippines and, Of course, are oper-
ating on military basis in China. There
may be little that either the United
States or Great Britain can do to inter-
fere with those developments 1000 miles
away from the American mainland.
Fourth, Russia as vast land area
whose problems now are those of a
sprawling empire, whose methods are far
from efficient, but whose area is too big to
be gobbled up by others.
The idea Is that within these four great
economic groups there would be direction
by the dominant nation to assure devel-
opment of the areas economic resources.
Each of the nations could have its own
political form, so long as political govern
ment did not attempt to interfere with
the working Of the overall economic
machinery. It Is notable that Germany
is allowing Denmark, Norway and France
to maintain their essential governmental
forms, while making sure that economic
control and key economic policies lie in
German hands. Likewise, 1t is notable
that the United States feels, itself to be
the good neighbor of relationships in
this hemisphere. There is nothing to
suggest that the new American plans for
cooperation with these governments in
clude an insistence upon a change to
democratic principles.
Emphasis in the regrouping of nations
now under way in the world is upon eco
Monies. The Germans and Japanese are
trying to break down barriers that have
stood in the way of their access to raw
materials and to markets for their in
dustrial products. These barriers have
been tariffs and boycotts and other con-
trolls by which each little nation sought
to become a lf-contained unit. The