Evening star., 1941-08-10

Board, armed with broad powers, Presl-
dent Roosevelt has acted for better CO.
ordination of effort by the agencies
through which the United States is con-
ducting its economic war" against the
Axis. Headed by Vice President Wallace,
and with a membership of seven cab
met officers, the new board will have the
duty of protecting and strengthening
"the international economic relations of
the United States in the interest of ma
tional defense" Its creation plainly
presages a tightening of economic pres
sure against the totalitarian oppressors.
In modern war, with its mechanical
armies and vast air fleets, economic fac
tors have assumed an importance un-
known before. Oil, rubber, manganese,
tin and other strategic materials are not
only essential to the armed forces of
every nation, but are needed in. vast
quantities. Economic defense, therefore,
has two major objectives. First, to con-
serve for the United States and its
friends large stocks of vital materials.
Second to prevent their flow to unfriend-
ly nations
Through the War Trade Board, under
the Craftsmanship of Vance Mccormick,
the United States in 1917 and 1918 car
ried on an effective economic warfare
against the Central Powers. In con-
junction with the Alien Property Gus
todian, this agency was vested with full
powers to curtail enemy trade. BY a
system of licenses for exports and i'm
ports, it exercised virtually complete con-
troll over the foreign commerce of the
United States. The board plugged the
leaks through which, in the early part of
the war, considerable quantities of goods
reached Germany by way of neutral
countries, and in return for permission to
buy essential goods here it made ar
rangementS to secure certain war mate
rails from neutral states. Trade in nom
essentials with South America and the
Orient was limited, and their production
at home was discouraged.
Differences From 1917.
Though current economic measures
parallel, at certain points, those taken
by the United States in the first World
War, the situation now differs in four
important particulars from that of "A
years ago. First, Hitler today controls
practically all of Western Europe. This
means that most of the continent is now
enemy" country. Second, because of
the Axis program of commercial and
political penetration, Latin America has
become major theater of economic war
Third, Japan, one of the powers aligned
against Germany in the first World War
is now a full-fedged partner of the Axis
and nation palpably unfriendly to the
democracies. And fourth, as a result OF
Japans policies of territorial aggres-
sion in the Far East, this country faces
the possible cutting off of its supplies
Of rubber, tin and other strategic ma
terials. In 1917. we faced no such danger
Through half a dozen agencies. the
United States Government has already
launched a vigorous economic defense
program. In the aggregate, the meas
ures taken all have contributed material.
ly to strengthen our armor Some o.
Quill do lIIC IulO VII CApOItS u
Japan, have been aimed to weaken the
economic power of the Axis.
Under authority of legislation passed
by Congress, President Roosevelt last
year set up the Export Control Admins
tration. An Army officer, Brig. Gen
Russell L. Maxwell. heads this rapidly
expanding organization. The staff in
cludes many Army and Navy officers
More than go per cent of our exports
by value, are now subject to export con-
troll. Licenses are issued by the State
Department, under general rules laio
down by Administrator Maxwell.
Export Control Program.
In addition to defense agencies, many
other Government departments have a
hand in shaping its policies. Though the
principal purpose of the Export Control
Administration is to prevent the ship
ment abroad of materials needed by the
armed forces, this agency, by controlling
the flow of exports, has become an i'm
portant instrument in the conduct of
economic war. Where questions of for
| eign policy are involved, the State De-
partment has the determining voice.
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