Evening star., 1944-07-16

1ue M0Se complex SET Oh tIauc Auu
financial problems in world history viii
be the heritage Of the United States
after the present war. That statement,
Of course, holds good for other coun-
tries. But because 1t Is the worlds
greatest economic power, America, in
cooperation with the British Empire,
will be forced to assume major response
bilities for the changes that must be
made in the wartime pattern Of world
trade and the restoration OF war-torn
and economically Sick areas OF the
earth.
Fortunately this fact has been recog-
nized ever since the war began, and the
problems that will arise have been sub
jected to keen study and analysis. Be-
cause Of this oficials here hope that
some Of the acute dislocations and suf-
fering that followed the World War may
be avoided by wise planning and far
sighted, liberal economic policy based
on the realization that If America is to
have postwar prosperity 1t must expect
to buy as well as sell in world markets
and must pour billions into aiding war
devastated areas to restore their nor
NAL farm production. manufactures
and trade.
Two divisions of the State Depart
ment are particularly concerned with
these problems. One Is the regular
Economic Division under Harry G. Haw-
kins, the other the Once Of Wartime
Economic Affairs, directed by Charles
p. Taft OF Cincinnati, son OF the late
President william Howard Taft. Mr..
Taft this week discussed with The Star
some of the acute problems involved in
the transition Of wartime economy to
. peace basis.
Interagency Group Set Up.
There has been set up, he pointed
out, a special Interagency Committee
which Is studying these problems and
others allied to the current conduct of
war trade. 1t includes the State De-
partment. the Foreign Economic Ad-
ministration, the War Production Board,
the War Food Administration, the Of
nee of Price Administration, the Com
merce Department and the United
States Tariff Commission.
Although pat answers cannot be given
now to the thousands of complex ques-
tions which these groups are studying,
Mr.. Taft was able to outline the nature
Of some Of the problems facing the
United States and suggest some princi-
Piles which should guide In their solu-
ton.
The war has upset the whole pattern
Of world trade. For example, the United
States is importing, particularly from
Latin America, vast quantities OF stra-
tegic raw materials which will not be
needed here in anything like their
present volume once the guns stop fir-
ing. Good examples are Chilean nj
trates and copper. the former . COM
ponent Of gunpowder, the latter used
in almost every type Of military ma
teriel.
At the same time. the United States
has cut drastically many of Its usual ex-
ports to Latin America such as auto
mobiles, typewriters. electric refriger-
ators and all sorts OF manufactured
goods. Like civilians in this country,
Latin America has been placed under
rationing. The War Production Board
Requirements Committee, including the
State Departmet and the Foreign Eco
nomic Administration, determine each
quarter, after veiwing the available sup
ply of consumption good here, how much
We can afford to send the various Latin
American countries.
Trade Flow Reversed.
Wartime conditions have altered the
whole picture Of United States trade
with Latin America. In most prewar
years the United States had large ex-
port balance of trade with that area.
Now the now has been reversed.
According to the latest Commerce De-
partment statistics, the United States
during the first three months of this
year had an import balance of 1885,
100000 with the 20 Latin American ma
tions. This was more than double the
import balance for the corresponding
period last year.
Total American foreign trade, how
ever. shows heavy export balance and
Is at an all-time high. Exports for
April totaled s1,192, ,000, 900, and they
have exceeded 81 900, 900 900 month for
the last II months. Imports for the
same month were valued at $359, 500 900,
the highest point they have reached