Evening star., 1941-08-03
Economic Warfare
Seen Foundation
For Lasting Peace
Cooperation Smooths
Way for Reoping
Fruits of Victory
BY MAI. GEORGE FIELDING
ELIOT.

President Wallace, to employ the
economic powers of the United
States in the furtherance of the
national interests and security.
Economic warfare is only one de-
partment of total war" and is very
closely linked indeed with military,
political and psychological consid-
erations. 1t is almost amusing now
to recall how some of our earnest
pacifists used to insist that economic
sanctions were substitute for
shooting war; as though any ma
ton would yield to the one sort OF
pressure while it could obtain relief
by using the other.
It Is q clearer picture that we see
today, though we have paid heavy
price for increased clarity of vision.
We see now that the economic
weapon is just a weapon, one OF
many in the armory of the modern
state. to be used as need may die
tate. but certainly not with amy
idea that it's blows may not be
parried with weapons of other types.
National Honor Involved.
The President himself has said
that for a long time he refrained
from using economic weapons
against Japan lest Japan move by
force to Offset American oil sane
tions by the seizure of Netherlands
oil properties. Now that oil sanctions
have been put in force, there can
be no question that our national
honor is involved in the matter OF
the defense of the Netherlands
Indies against consequent Japanese
aggression, nor does there seem to
be much reason to doubt that the
country Is at last prepared to sup
port such action if Japan makes
1t necessary.
It is, however, in the larger field,
that of winning the war against the
forces of aggression and conquest
everywhere, that the economic
weapon may play even a greater
part than against Japan alone. In
deed, it seems likely to be the chief
instrument of Hitler's downfall, in
the end.
It is, therefore, a matter Of con-
rratulation to all who serve the
cause of freedom to find that the
President has created an instru-
mentality for the employment OF
the vast economic power OF this
country as weapon of defense.
that he has appointed so able and
we'll balanced a leader as Henry
Wallace for this corps of the Ma
tons defense forces, and that he
has seen fit to make so considerable
a delegation of authority to Mr..
Wallace in the executive. order ap-
pointing the Vice President as chair
man of the new council.
Steps In Right Direction.
All these are steps in the right
direction, and as to the last we
may hope a foreshadowing of other
steps along the same line in other
fields. ..
The moment is particularly ap-
propriate for commencing the Or
ganization of our economic power
without our aid, organized and
directed by capable hands and close
Iy co-ordinated with the British
effort the British Ministry of Eco
nomic Warfare was like motor
hitting on two cylinders only. Work.
ing hand in hand with us, it will be
able to function much more eff
ciently: no doubt one of the first
tasks of the new council will be to
perfect existing machinery and Gre
ate new machinery for the purpose
of co-ordinating our recent efforts
with those of the British Com
monwealth of Nations.
These may be supplemented, for
the time being, by the aid of Rus
sia, whose entry into the war stops
vast leak in the blockade of Ger
many while Russia continues bel
hgerent. Note here the close con-
nection between economic and mill
tary effort, for If Russia contrives
to keep her armies in the field. the
economic war against Germany is
tremendously aided.
Near East Danger Center.
The Near East is an area which
may give great concern; indeed, if
Russia stops the direct Nazi ad-
vance toward Asia, that advance
may then turn southeastward, and
again the military measures taken
to secure the strategic arch of the
British Empire stretching from India
to Egypt may be of prime Importance
to the winning of the war.
The unfavorable situation in which
Hitler would find himself were he
to be locked all winter in steel
ring drawn tight around the Euro
pean area which he now occupies
needs little elaboration, and he will
certainly use every means at his
command to break through that
ring, whether on the steppes of the
Ukraine, the highlands of Turkey, or
the deserts of Africa.
Economic warfare is important
not only as means of defeating the
enemy, however, but also because
the very organization provided for
that purpose is also one which en-
ables the besieging forces to live,
to carry on their normal occupa-
tions as far as that is possible, and
to support their war effort. The
gradual economic organization of
the European world under An
glo-American leadership will pro-
vide most eloquent and convincing
answer to Hitler's claims for his
new order" while assuring the
most efficient employment of the
available resources in raw materials,
man power, shipping and industrial
capacity.
Increasing War Potential
In the course of this mighty task
It should be possible to find relief
for many of the most pressing
economic problems of the Latin
American nations, of the colonial
areas which have been cut of from
their normal contacts, and even-if
the Toxic government prefers the
,a,,reo Of eonco- "a that of