Evening star., 1944-08-20
America Seen Unreody
For World Banker Role
Writer Doubts Willingness to
Restrict Production

Writer Doubts Willingness to
Restrict Production
By Open L. Scott.
The big and growing world mystery
is whether the United States UNDER
stands the role that is being cut out for
it after this war. One set of interna-
tional negotiations after another Is
being held to create a new world league,
world investment bank, a monetary
stabilization fund, world aviation and
world shipping authority and many
another set Of machinery.
Almost all plans revolve around this
country and its willingness to stake the
world 10 new start, and then to keep
1t going with steady flow of new capi-
tai and new orders. Yet nobody quite
knows whether the United States will
be In mood to set the world up in
business again or whether it is able or
willing to permit the rest of the world
to work out of its debt if it Is provided
with the capital it seeks.
Other nations remember that after
the last war this country provided capi-
tai on lavish basis to stabilize curren-
cies. to finance new industries and TO
reconstruct devastated areas. Then,
after lending, the United States baked
at permitting its debtors to work out Of
their debts by supplying this country
with more and more of the goods that
they had to sell. At present the United
fntn sc 1on oIn>
that it had reached rs years ago.
This time there Is to be monetary
stabilization fund into which also 900,
600 American dollars will be placed, il
Congress approves. There is to be an
investment bank that can lend about
So 600 900 900 for reconstruction and de-
velopment. Then it is being proposed
that lease-lend-now largely on a gift
basis-be shifted to straight loan
basis and continued after the war.
The alternative would be a sudden
loss of 81 ,1oo, 900 900 month in exports,
with all that would mean in unemploy-
ment. Nations want the United States
to stake them to new ships, to new air
transports, to new machinery and new
machine tools
1t is very much to the American in
terest to have a prosperous world and
to have stable world built around
relative freedom of trade. This country
is not in particularly good bargaining
position in world of controlled trade
and Of trade blocs.
Other nations, however, are showing
much skepticism about the future will
lngness and the future ability of the
United States to serve as the worlds
postwar banker and to act as a banker
should act over the years. They appear
to expect that this country will be
generous right after the war, when
dollars will be drug on the market
and when 1t will be necessary to export
heavily to avoid large-scale unemploy.
ment.
Their concern, however, Is a longer.
range concern. They wonder how tho
United States will act when it comes
time for foreign nations to pay back
their borrowings by sending to tho
United States more and more of the
things they have to sell. They also
wonder what the attitude will be when
this country runs into its first postwar
recession.
Basically, there is doubt that the
United States will be ready to cut down
its own agricultural industry to permit
Canada or Argentina or Australia to
pay its obligations in wheat or corn or
beef. There Is doubt whether this
country would scrap its synthetic rub
Der industry or destroy its new merchant
marine or give up its expanded produc-
ton OF vegetable oils and fibers In order
to help the British pay OF their debts.
There Is doubt, too, that Congress would
agree to limit American mining of coal
or iron ore to make room for those and
other commodities from a Russia striv-
ing to pay of a debt to this country.
The British, who managed the world
system of free capitalism for so many
! decades, lived on an island with few
natural resources and they deliberately
cut down their agriculture They were
| IN a position to accept food and other
raw materials from those to whom thew
loaned. They financed trade, performed
services and processed imported ma
terlals and lived as q world banker
| should live.
This country finds it difficult to taxa
over where the British have had to
leave OH because the United States Is
SO richly endowed with resources of
every kind and because its people in
slst upon developing those resources. It
Is difficult for the United States to
live by clipping coupons while the rest
OF the world works for it.
Other nations know this and ara
watching the present American effort
to 60 back into the world banking
business with tongue in cheek, The
British are planning to have their
government play very large part in
their postwar foreign trade in order to
take every bargaining advantage that
goes with the role of debtor. Russia, of
course, maintains a government monop-
oily of trade. France intends at first
to trade through her postwar govern.
ment. Germany and Japan won't be
doing much trading for a while.
The United States will be the one bio
world creditor. 1t will try to act as a
banker should act. 1t may avoid a test
OF its new role by making 20 to 30 wear
loans. In the end. however, the sue
cess OF this country as a banker ma