Evening star., 1944-07-16
Postwar Trade Problems
Present Great Difficulty
Readjustment in Countries Stimulated to Meet
Allied Munitions Needs Now Being
Studied by State Department
By Josebh II. Baird.

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since October, 1929. These figures do
not include shipments to the American
Army abroad, but do include goods sent
to the other United Nations under
lease-lend.
These figures, however, reflect high.
ly abnormal situation, as the exports in.
clude hundreds Of millions of dollars
worth Of munitions, military trucks and
other specific military goods for which
there will be no postwar demand. They
are cited only to show the magnitude
Of the current world trade structure
which must be completely revised and
remodeled to meet the postwar situ-
alton.
Big Demand to Come.
When the war ends, Mr.. Taft points
out, there will, under the ordinary OPP
erations Of the law Of supply and de-
mand, be a drastic cut in Americas
need for many Of the products we now
are importing-Chilean nitrates, for in
stance. At the same time there will be
an immediate demand in foreign ma
tions for all sorts of manufactured goods
usually supplied by the United States
Of which production and export have
been cut during the war period.
Naturally, If America cuts its Inn
ports drastically, foreign nations will
not have the needed exchange to buy
goods here. with resulting loss of op-
portunity for big sales abroad and the
full employment Of American labor and
capital equipment. Yet the falling of in
demand for certain raw materials used
speclaflcally for war purposes Is in
evitable. What is the answer?
Several. according to Mr.. Taft. are
under consideration. One is that the
United States Government should pro-
vide q permanent stock pile Of critical
military materials which are not pro-
duced in sufficient quantities in this
country. Such materials include, with
others, nltrates. tin zinc, mercury, rub
Der and copper. Shortly before the
war Congress appropriated $1o0, 900 900
for use by the Army and Navy Munitions
Board to buy up strategic materials.
However, this action was taken late and
the Government was forced to pay ex-
cessive prices in highly competitive
market for materials that could have
been acquired much more cheaply by
gradual but consistent purchases in
earlier years.
Part Of the existing surplus stock
piles will be in private hands, perhaps
because some companies do not wish
governments to have control over their
business Private companies and gov
ernment both look forward to the time
when the United States supplies OF
strategic minerals will be completely
exhausted except for low-grade ores.
This might be 10 to Is years for zinc
and IS to 30 years for copper.
Feels U. 8. Should Be Liberal,
| On the negative side, 1t Is pointed out,
the Government can help maintain a
demand for foreign raw materials by
| refusing to dump its own stockpiles Of
noncritical materials on the private
market Immediately after the war. but
! holding them for gradual and orderly
disposal over the years. This matter
Is now being studied by the Surplus War
| Property Administration, headed by As.
| sistant Secretary of Commerce Will L.
Clayton, which was set up as a result
OF the recent Baruch report on postwar
| reconversion.
Basicly, Mr.. Taft believes that the
United States must, in its own self
interest, adopt liberal economic policy
toward foreign producers If it is to
maintain profitable foreign trade in
. healthy postwar world. He sum
married his views succinctly In a recent
speech:
I'VE have to rebuild" he said, If only
to restore our own markets, and the
restoration Of those markets will pay us
many times over for the money we put
in for the rebuilding.
Whether it is helping to rebuild
Europe or assisting in the industrializa-
tion Of China or Latin America, we can
afford to loan money at low, even in
significant, interest rates for long peri
ods, with gradual repayment of the
principal
I'VE will get our principal back, but
not at per cent interest. And we are
smart because for one thing the Dor.
rover spends the money here for things
he needs, and that means jobs for our
people. For another thing you gradually
create . higher standard of living in
(see POSTWAR, Page C-33
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