Evening star., 1944-06-17
Rx WENDELL WILLKIE.


commercial life of most of the coun.
tries Of the world is either state.
owned or controlled, then the Who'll.
problem Of the survival of q fres
economic system, even in the United
States, will be complicated. Ger.
tainly the pattern Of our foreign
trade policy will have to be fash.
ioned to Government supervision
ALLEGATIONS and perhaps even price
fixing, for State-controlled econ.
omies can sell without regard X
costs. In other words, prices car
become political.
Therefore, the type and kind oi
economy which exists in other coun.
tries is important to us. Obviously
we cannot interfere in the economic
life Of other nations. There is much
however, that we can do to create
an atmosphere conducive to the de.
velopment and growth of free econ
omy in the rest of the world. Among
the measures which are indispen.
sable to the development of such an
atmosphere are revision of our tariff
and cooperation in a policy of in
transitional currency stabilization
To these problems the Republican
party must address itself.
High Tariffs Lose Support.
In the minds OF generations OF
Americans the Republican party is
associated with q high protective
tariff. Yet already, at the turn oi
the century, such Republican lead
ers as Mckinley, Taft and Root,
sensing the inevitable interdepend-
ence OF the 10th century world, were
urging modification OF the tarin
through reciprocal trade agreements.
In the nationalistic swing that
followed the last war, however, Re
publicans, ignoring the fact that
America was for the first time a
creditor nation and that other
countries must sell to us If they
were to buy our goods, passed sue
cessively the two highest tariff bills
IN our history, the Fordney-Mc
Cumber and the Hawley-Smoot.
The reperclssions of the latter were
worldwide. Within two years rs
countries had established trade bar
riers against us. Everywhere ma
tions turned to higher tariffs, tight
ened exchange control, import quota
systems and barter agreements.
When in 1888 the present admin
istration dumped the London Eco
nomic Conference the world in
eyitably turned to more intense
nationalism.
we are now faced with the urgent
postwar economic problem Of re-
establishing Q healthy, worldwide
trade. In our present powerful eco
nomlc position We must lead the
way. In order to do 80 we must have
the realism and good sense to face
the TACT that tariffs are no Longer
2 purely domestic problem. orr
tartn measures yitally affect the
economic. well-beirig of nations
throughout the world, and theirs
anect us no less.
Must Revive World Marts.
we must take positive steps to
revive the world economically by
opening up international, trade
Otherwise the countries of the
world VIII seek to establish separate
trading blocs as q way to provide
employment for their people. Thus
trading areas will be narrowed and
Antagonistic. Under such
circumstances, we shall have to
reorganize our agriculture and in.
oustry Tor defense rather than pros-
perfty and the fiber Of our free
economic system will be weakened
Other nations will be forced along
the road to totalitarianism. A
solution OF international economic
problems Is as indispensable for
future peace and security as politi-
cal and military solutions.
To this end the Republican party
should propose that through the
United Nations Council an attempt
should be made to reach general
agreement on q clear and uniform
code for international economic
relations.
Likewise, the Republican party
should propose that the United
States proceed to get rid Of the COM
plexities and absurdities Of our
present tariff. OF course we can
not and should not 20 overnight
from extreme tariff protection to
free trade. Nor does any sensible
person advocate this. But many
tarin items could be swept away
IN the readjustments which will
occur after the war without SUBJ
stantial injury to any American
industry and with great gain to
the consuming public. And many
more could be lowered by effective
and mutually beneficial reciprocal
arrangements.
Financial Shifts Needed.
The Republican party should pro-
pose another vital step for world
economic revival Former arrange
ments for international finance and
trade are today in chaotic confusion,
and steps toward sterilization of the
currency exchange are indispen-
sable. II the exchanges are kept
relatively stable, short-term credits
and possibly a new kind of inter-
mediate, semilong term credits to
finance international purchases over
a period Of, say 10 years, can be
handled by our existing financial in
stitutions.
There Is, of course, also the oues-
tion of long investment. Par
ticularly in the development OF
those countries which have not kept
pace with industrial progress. The
startling contrast between the Level
of comfort in our modern industrial
countries and the hard struggle TO,
bare subsistence in technically un-
developed countries Is one of the
most painful-and most dangerous
aspects Of international relations
There Is a great field for construc-
tive long-term investment. Oul
private investors, however, as vel
as our Government, must make thei,
plans with full recognition that the
day OF economic imperialism is over
Eri>uHI,, S,rS~~ Ny~II