Evening star., 1941-06-22
Discusses Problem
of Postwar Trade
BIZ Frederic J. HuSktn.

with Germany has brought more
prominently to the fore the subject Of
trade relations of the United States
with European countries. The more in
elusive term is used because any
severance of relations with Germany at
this time would involve far more than
it did during the first World War. Then
most of the countries now under domi-
nation of the Nazi were either neutral
or part of the Allied forces. And all
these countries, until invaded by the
Germans, we're good customers of the
United States
The worth to this Nation of markets
in NaZi-controlleo countries before their
funds in the United States we're frozen
was negligible, and the present situa-
ton brings these markets TO a standstill.
In the event of complete break with
Germany most of the European markets
of the future would likely be lost to the
United States, unless revived on what
ever credit or barter basis Hitler would
dictate
There are many evidences Of feel
ing in this country that the time is
rapidly approaching when the nations
of the Western Hemisphere must not
only stand together on the principle Of
defense, but on the practice Of greater
interchange of products and manufac-
lures. This feeling is already being
translated into a reality by trade
agreements made with Canada and the
Latin American countries. Under these
agreements many old trade barriers
have been lifted or modified so as to
make possible a greater exchange Of
goods.
This change toward a more co-opera-
tive program of the nations of the
Western Hemisphere did not come
about because of any effort to avoid
trading with Germany and German
controlled countries. 1t resulted from
the farsightedness of few statesmen.
In building a future economic pro-
gram, informed authorities say, Hitler
has counted largely on huge surpluses
in Western Hemisphere countries to
supplement German resources, and TO
be had on terms of his own making.
How Germany has planned to obtain
these surpluSes for distribution in
countries under her control, and to dispose
of her exports, involves one of the
greatest commercial schemes of all times.
Counting on the capture of the British
Isles, the plan would be to make
London, Liverpool and Berlin centers Of
distribution, and through an agency
parcel out to each controlled country
what it could have and how much. Also
each country would be assigned to a
list of exports that would have to be
produced under penalty for failure.
This sUper-trading agency would also
have control over all exports with
quota for each country with which it
had dealings. In this way it could single
out country in great need of GER
tain commodity and offer it in exchange
for a commodity or surplus which Ger
many or some German-controlled coun-
try needed. This would put the coun-
try approached in a somewhat helpless
position, for 1t would be faced with the
opportunity to sell surplus and to
buy something it needed Necessity
working In two directions, the familiar
Hitler bargain would be driven.
All transactions would be based on
the barter scheme long contemplated by
the Nazis which is to do away with all
international exchange on its present
basis, leaving one country to trade with
another by mere exchange of goods. 1t
would take the same form of most
transactions half a century ago when
farmers carried their produce to market
and exchanged it for commodities they
could not make or produce. On first
thought, such plan seems feasible,
but its weakness lies in the exchange
value being dominated by one OF the
traders and always the most inde-
pendent one. This is why it appeals to
Germany.
So, whatever may be the future Of the
war, it seems that trade relations with
the greater portion of Europe must be
carried on, If at all, through some scheme
IN which the voice of the nations of
the Western Hemisphere will not be
heard. Avoiding such situation Is as
much part of the national defense
program as the manufacturing Of fight
| ing equipment.
What are the possibilities of not being
encircled by such a plan? The answer
lies in the great wealth found through
out the Western Hemisphere. Food be-
ing mans first requirement for living,
the countries of the Western Hemisphere
constitute the greatest source of agri-
cultural and cattle products, both in
quantities that are presently being pro-
duced and in potentialities. These coun-
tries also constitute one of the greatest
economic areas of the earth No one
country produces everything, but what
one does not have can usually be OBJ
tained from one of the others, and, taken
together. they produce most Of the food
stuffs and minerals that enter into
modern civilization.
Although the nations of the Western
Hemisphere are primarily producers of
farm commodities and raw materials
manufacturing industries have been de-
veloping very rapidly in the past few
decades. This is especially true Of the
United States. where great industrial
strides have been made as the result
Of new processes and improved machin-
cry. In many other countries industriali-
zation has also reached such proportions
that local needs are being adequately
met and neighboring countries being
sIIpnlied with Items thev do not manu-