Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-07-12
Taft Proposes
Loans
For Europe
Senator Urges Delay
In Breton Action
At Charter Hearing
BY ]. A. O'LEARY.

Senator Taft, Republican, of
Ohio today urged Senate leaders
not to push the Breton Woods
world monetary agreement
ahead of the United Nations
Charter next week. He denied
that the promotion of foreign
investments is essential to peace.
If the Breton Woods program is
postponed until fall, the Ohio Sen
ator suggested "That we increase at
once the direct lending powers of
the Export Import Bank" to take
care of any emergency financial aid
that may be needed in Allied coun-
tries. A separate bill for that pur-
pose Is pending in committee.
While Senator Taft spoke in the
Senate the Senate Foreign Relations
Committee moved toward compile
ton of the hearings on the Charter
by tomorrow, as further spokesman
for organizations on both sides of
the question aired their views.
Favors Political Cooperation.
IT am strongly in favor Of inter-
national cooperation in the political
field" Senator Taft said, and I
intend to support the Charter. No
matter what its faults may be, the
horrible effects of world war are so
apparent that any international or
ganization concerned with its pre-
vention is entitled to our support:
nor do we give up or contribute any,
thing greater than any other nation,
except in proportion to our size.
The political cooperation proposed
is not one-way street.
THE parallel between political
and economic cooperation is utter
ly fallacious. Measures of economic
cooperation should stand on their
own feet and be judged on their own
merits.
cit is not true that wars-or at
any rate modern wars-have been
brought about by economic causes.
Germany could have been as pros
porous as any other nation without
a foot of additional territory"
Denying that foreign investments
will make peace, Senator Taft said
history does not bear out that claim.
Uric Bell Testifies.
Among the witnesses heard in sup
port of the Charter today was Uric
Bell, executive vice president Of
Americans United for World Organ
;vot;ao With 1t,1,;cL ara aRSHotaI
numerous societies from all walks of
life. The committee also heard sew
eral more opponents of the Charter
In urging Congress to confine Its
immediate action on financial CO.
operation to an increase in the
lending authority of the Export I'm
port Bank, Senator Taft asserted
that neither the international bank
nor the currency Sterilization func
to be set up by the Breton Woods
plan is designed to deal with the
present emergencies confronting Al
lied countries.
Both of them commit the United
States to long-range policies which
will cost us billions Of dollars" Sen
ator Taft went on, "and with al
the discussion that has taken place
those policies have not had any rea
consideration from the people Of
this country.
Undoubtedly there is an emer-
gency situation in the world Many
countries, headed by Great Britain
have reconversion and transitional
problems which are almost insolublt
without our help: England will havt
a $4,000, 000, 900 adverse balance Of
trade during the next year and in
sufficient assets with which to NEE
it. Other countries are correspond.
ingly in trouble.
Proposes Direct Loans.
IT have always believed that II
the postwar period we would have
to extend reasonable credits to many
countries to enable them to buy
machinery and raw materials Sc
that their economic machine may
begin to operate. But I believe these
loans should be made directly BY
our own Government, and it should
be recognized that they may never
be repaid"
He said he believes the total Of
such assistance during the next
two or three years may be held tt
between and billions if money
is advanced only for essential pur-
poses. He charged that the Bret
ton Woods permanent internationa
bank would be "as inefficient" ir
solving these immediate financia
problems of Allied and liberated
countries as the United Nations Re-
lief and Rehabilitation Administra-
(See CHARTER, Page A-6.)