Evening star., 1941-04-28

L ldloCu lllC VI
money, they disposed of that with
a light gesture, pointing to the
monetary triumph of Germany,
where men were put to work and
money was issued on the produc-
ton of their anticipated effort.
What Germany has done at home,
they say, will be accomplished by
German bilateral trade agreements
| throughout Europe and in this new
economy there will be an interna-
tional division of labor and
economic grouping, each area pro-
ducing in accordance with its capa-
city and all complementing each
other with reciprocal trade rela-
tionships under the direction of
Germany, with Berlin as the central
clearing house.
They describe an economic world
in four major blocks: Germany, the
United States, British Empire and
bracketed together, Italy and
Japan. They do not mention Russia
and consider most of Asia, Africa
and South America as fields for
development which will require
great effort and large expenditure of
capital before they can be con-
sidered part of the modern economic
area. They recognize that within
such grouping there exist sharp
cleavages in government and politi-
cal philosophy, but see no reason
why this should be hindrance to
harmonious commercial relation
ship.
The complicated structure of
modern economic organization has
made each part of the world de-
pendent upon the other for full
flllment, they assert. Europe can
live without America as America
can live without Europe, but such
mutual isolation will cause hard
ship to both continents and
greater hardship in America with
its great surplus of raw materials.
Great Domestic Program.
! At the conclusion of this war,
| Germany alone plans on spending
more than S600o,O00 900 in a great
| domestic program for building work.
lngmen'S houses, re-equlpment OF
transportation systems. undermining
of rural villages and farm dwell
ingS, and what Germany needs.
the NaZis say, is an example of
requirements for all Europe. Mate
rials and labor necessary for re-
construction after this war are enor-
nous and this is where, they claim,
the United States can play heroic,
constructive part for the rehabili-
tation of Europe and the world.
America is keeping 80 per cent
of the worlds gold, and fabulous
riches lie idle in America, begging
for employment. All this wealth,
say the Nazi economists, can be
used for the rehabilitation of Eu-
rope on the same sound terms with
which the wealth of Europe Gre
ated the wealth of America, not in
ill-advised loans like those of the
frenZied twenties, but in spirit of
sound business, as capital invest
ment. All this assumes that Ger
many will win, but all of the bank
ers, businessmen and economic ex-
perts with whom I talked appeared
to have no question that the domi-
nant position of Germany on the
continent was unquestionable and
would remain so.
When I asked what part gold
would play in this postwar econ
omy 7 was answered by the ques-
ton: How can Germany, with only
S25, 100000 of yellow metal, enter
the markets of the world on the
gold standard? And before I could
attempt an answer, I was asked fur
ther to define the present-day
monetary function of gold. 1 ex-
planned, in my effort to find a re-
sponsive reply to this second query,
that the experts OF our Treasury
Department have been graphing
with the problem of our piling up
surplus gold supplies for years, and
| if they have found solution they
/ have not yet announced it.
| Appeals to Historical Argument.
Somewhat defensively I appealed
to the historical argument and de-
scribed how, ever since ancient times
in the Orient and among the Greeks,
gold has served as the medium OF
exchange in commercial tranSac-
tions and no adequate substitute has
vet been found. AS measure OF
valuing possessions, gold has i'm
mutable, intrinsic value, is precious,
limited in supply and has always
been the object Of covetous lmagl-
nation-qualities essential for a uni
versal gauge of wealth.
All this sounded pretty rhetorical
when the head of the Belgian COM
mission, passing through Berlin on
| it's return to Brussels, told me how
gold and American dollars had been
Snurned in Moscow. The commits
sion went to Russia two months ago
and ever since then has been en-
gagged in discouraging negotiations
concerning food supplies for fam
ishing Belgium. Belgium has de-
posted in New York vaults more
than 500 900, 1000 and yet, as this Is
written, Belgian children are faint
ing from hunger.
The Belgians went to Moscow con-
fident that American gold was the
most popular inanimate object in
the world and they had not the
slightest doubt the Russians would
avidly accept it for Ukrainian wheat.
But they soon found out the Rus
slams were not interested in gold
under any circumstances. Com
pletely jolted, they urged that in
America gold was still considered
of value and could buy things. The
Soviets replied that they had gold
enough of their own to use on
Americans. They were producers of
gold themselves, they said, and what
they wanted from Belgium were
things they did not produce at home,
such as more useful metals, ma
chimes, cranes and electrical equip
ment.
Had to Give Zinc.
So, matters stood paralyzed, with
the Belgian people begging for bread
and the money of the commission
begging for them; but no gold ar