Evening star., 1941-07-31
Wallace Heads
New Economic
Defense Board
Roosevelt Sets Up
Unit to Direct
Other Agencies
By GARNETT ID. HORNER.


established the Economic Defense
Board to formulate and coordinate
policies concerning the control OF
exports and imports, frozen for
eign assets, "precluSive" buying and
other measures relating to national
defense in the international eco
nomic field.
The board is expected to consti-
tute a sort of super ministry" for
economic warfare, cooperating
closely with the British Ministry OF
Economic Warfare. Although 1t Will
have no administrative duties 1t
will have wide authority in devel-
oping new policies and co-ordinat-
ing the activities of agencies ad-
ministering specific measures.
Wallace Allowed No Alternate.
Importance of Mr.. Wallace's work
as chairman of the new board was
indicated by provision In the execu-
tive order that all the cabinet mem
bers comprising the board except
the Vice President could designate
alternates to act for them. Mr..
Wallace is expected to devote all
the time he can spare from his
duties as presiding officer OF the
Senate to the economic warfare
problems. .
As chairman. he was authorized
by the President Ito make final de-
cisions when necessary to expedite
the work of the board" and to
make all necessary arrangements
for carrying out the boards func-
tions. With approval of the Presi-
dent, he may appoint an executive
officer.
Under the groups supervision will
be the handling of frozen assets OF
Germany, Italy and other countries
and maintenance of watch on
Latin America firms blacklisted as
Axis tools.
Also. the board will watch the ex-
port controls designed to prevent the
removal from the United States Of
airplane gasoline, scrap iron and
other vital defense materials, ex-
cept to the Western Hemisphere and
the British Empire.
Antitrust suits to break up Axis
Influenced monopolies in this coun-
try, purchases Of strategic materials
abroad, and similar activities also
will be supo~-ised by the group.
Cabinet Officers Named.
The appointment of Mr.. Wallace,
according to some offlcials, will
make him the first Vice President
in the Nations history to participate
directly in administrative work.
Normally, the Vice President has no
duties except to preside over the
Senate
Serving with Mr.. Wallace on the
board will be Secretary of State Hull
Secretary of the Treasury Morgen-
thau Secretary of War StimSon
Secretary of the Navy Knox. Secre-
tary of Agriculture Wickard. Acting
Attorney General Biddle and Secre-
tary of Commerce Jones.
Some officials said that the Sc
lection of Mr.. Wallace was due, not
only to Mr.. Wallace's intense in
terest in all economic activities OF
the Government, but also to get q
person of sufficient rank in the
Government so that he could
umpire and smooth out differences
between the other Government de-
partments. For instance, the Treas
ury and State Departments have
sometimes been in disagreement
about freezing orders.
Mr.. Wallace became one of the
administrators leaders in economic
strategy when he was Secretary OF
Agriculture. While in that Office
he inaugurated periodic forums OF
economists from score of Govern
ment agencies and, without pub
licity, has been holding similar
meetings since he became Vice Pres
ident on January 20.
Term Is Defined.
The term economic defense" was
defined in the order as meaning
"the conduct. in the interest of ma
tional defense, of international eco.
nomic activities, including those re.
lating to exports, imports, the acqui.
sition and disposition of material,
and commodities from foreign coun.
tries, including preclusive buying
transactions in foreign exchange ano
foreign owned or foreign-controlleo
property, international investments
and extensions of credit, shipping
and transportation of goods among
countries, the international aspects
of patents, international communi-
cations pertaining to commerce and
other foreign economic matters"
Under the executive order issued
today the new board will coordinate
policies and activities of all these
agencies lin order to assure unity
and balance" in the application of
the measures of economic warfare.
Another function of the board is
to recommend whatever additional
legislation may be considered de-
sirable for economic defense pur-
poses. 1t also has the duty of
advising the President on the re-
lation of present measures to post
war economic reconstruction and
steps that might be taken to protect
American trade and establish sound
basis for commerce in the post war
period.
In another executive order Presi-
dent Roosevelt changed the name
of the Office for Coordination OF
Commercial and Cultural Relations
Between the American Republics to
that of Once of the Co-ordinator
of Inter-American Affairs and put
it under the Office for Emergency
Management directly instead OF
under the Council of National De-
| fense.
Nelson A. Rockefeller was named
as the co-ordinator to serve without
pay and perform the same duties q,
he has In the once with the longer
name,
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