Evening star. [volume] (Washington, D.C.) 1854-1972, 1944-01-09
Next New Deal
World Wide
Ru Omen L. Scott.

the next New Deal will have broader
base than the earlier New Deal which
rested upon the United States alone.
This New Deal of the postwar period, as
1t is taking shape, is to be geared to the
world.
Planning has gone far enough, how
ever, to reveal difficulties and differ
ences Of opinion that raise question
concerning Mr.. Roosevelts ability to
carry his world New Deal ideas very
far forward. That fact is not yet dis
couraging the officials who have been
charged with the task of making the
plans.
Most progress both in study and ne
gotiation leading to the New Deal OF
the future has been made in plans to
stabilize world currencies. 1t is prob.
able that there soon may be a full
dress world conference to seek agree
ment on some fundamentals of world
currency sterilization. Yet the prob
lem Of finding agreement that really will
mean much appears to be growing more
rather than less difficult.
This Government, in its plans, natu-
rally is interested in providing some
standards and safeguards that will make
OF any sterilization fund something
more than checking account estab-
lished by the United States to be drawn
against by other nations The British,
however, fear that any American plan
will be so hedged about that it would
limit the freedom of action Of the Brit
tsh Empire in dealing with it's currency
problems 1t is obvious that Great
Britain will balk at any plan that might
force deflation or lowering of living
standards in the British Isles. The
British recognize that they may be
forced in the postwar period to rather
drastic devaluation of the British pound
in relation to the dollar in order to
meet war-created problems of finance.
If the currency sterilization problem
OF any new world New Deal is difficult,
1t is simple compared with some of the
other problems
Tentative plans for a new world ins
vestment bank have been announced.
| 1t Is apparent almost Immediately, how
| ever, that the one major country in the
world which probably would not want
| to obtain loans from this bank would
be the United States. This country. too.
would be expected to supply most of the
capital Yet the United States, as the
big lender, would be expected to share
control over bank policy and direction
with debtors. The borrowing nations
readily might shape the bank policy
IN way to jeopardize the interest of
the big lender.
Next, discussions have taken place be-
tween the British and American plan
ners on the subject of postwar stabiliza-
ton of commodity prices. These discus
sions at once disclosed some funda-
mental differences of opinion that sug-
gest some Of the difficulties in the way
OF agreement. This country, with its
farmers and its miners and its other
raw-material producers to think of,
wants price sterilization on a rather
high basis. The British however, need
ing cheap food for their people and
cheap raw materials for their expert in
dustries on which they are heavily &C.
pendent are interested naturally II
stabilizing-n at all-on a rather low
price basis. Every war has been fol-
lowed by long period Of declining prices
once the war imitation has run its
course. Nations that need to import raw
materials may stand to gain most by
allowing this tendency to postwar price
decline to run its course.
The British also, at this country's sug-
gestion, carried on discussions in WASH
ington with regard to another postwar
problem, that of cartels
The United States opposes carteliza-
ton Of world trade and favors freer
trade on the basis Of competition The
trade agreement program of Cordell Hull
Is designed to check the tendency to
build cartels that divide up world mar
ketS and establish exclusive spheres Of
trade. The British are strongly COM
mitted to an extension of cartel ar
rangements and are insistent that the
United States follow a similar course.
At present, the official American policy
is in conflict with the British.
| y
In another field OF world New Deal
+ planning, Mr.. Roosevelt has caused a
study to be made of the opportunities
for American trade in developing the
backward areas Of the world. Mr.. Roose-
welt, like Wendell Willkie, was impressed
by the fact that If a way could be found
to raise the living standards of the
masses of the people Of the world, then
American industry could be kept busy
and employment could be assured for
everybody.
The planners who made the study for
President Roosevelt, however, came up
with the conclusion that industrializa-
ton of the world Of necessity must be
very slow process and that, except on
gift basis, it is going to be very diff
cult to find outlets for immense quanti-
ties OF American goods in areas like
China and Brazil and the Middle East.
Opportunities in this field were found
to be quite modest.
As result Of all Of this, 1t can be
seen that q world New Deal for the
postwar period has long way to go
before it flowers into something Of
Notwithstanding Importance
Chances are much more favorable that
the New Deal of postwar years, If there
Is one, will be geared to domestic and
not world base. The New Deal Of the
past war, in its essentials, was an effort
| tn solve this co,,ptrv'e ,,roh1oyor ~, q No