Evening star., 1945-03-11
Economic Troubles
Loom After War
Commentators Sees Difficulties
Ahead for America and Europe.
Rn Q1rpn Z. Scott

oy OUcH II. SCOLt.
There now is near certainty that the
Senate will approve membership for the
United States in the new world political
organization to be set up in San Fran
cisco next month. 1t is probable, too,
that Congress will place the United
States in other international organiza-
tions now being formed, including the
International Monetary Fund and
World Bank.
After this war the American people
are not to shrink from assuming some
responsibilities in the world They are
to go in for membership in political and
financial and economic organizations in
a big way They are ready to lower
tariffs, to use section &C of the Lease
Lend Act-as in the case of France as
an example-to provide dollars on very
low cost basis to help others get started
again.
Yet it is far from certain that the new
attitude of the United States is going to
solve the worlds problems and assure
stability in the postwar period.
Latin America, with nearly $4,000 ,O00.-
900 in accumulated dollars and gold. still
Is insisting that many of its nations will
face postwar trouble unless the United
States goes on after the war buying raw
materials that it will not need and pay
ing high prices for them.
Latin America also wants more loans.
Russia thinks it will need $4,000 900 900
| IN loans on very easy credit conditions,
| The French will want many more dol
! lars. China will take any number of dol.
lars offered. Britain, too, needs some
help.
That is Just for the beginning for the
transition period. 1t is when the PLAN
ners look at Europe and Asia as they
are to be organized after the war that
| they begin to wonder how well the new
| world is to work.
In Europe, Germany has been the big
market OF the past and the center of
commerce on the continent. Germany
| now is to be destroyed, to all intents
and purposes, economically and politi-
cally. She is to be occupied, split up,
stripped of much machinery and put to
| work with what she has left rebuilding
Russia and other areas. There is no
doubt she deserves any fate cut out for
| her. Yet there is beginning to be some
! question concerning how well Europe
can function with its prewar heart cut
! out
| Eastern Europe that had been aligned
in trade with Germany will be drawn to
{ RllSSl3
omy. Germany, working for Russia, NAV
be drawn that way. too. Italy will be
Impoverished. France will have her
| troubles but can make out. Great Brit
ain, however, dependent upon Europe
for an important part of her livelihood.
Is faced with serious problems of ad-
| justment if Europe is to be Impoverished
and reoriented.
Then there is to be somewhat the
same situation in the Far East.
Japan, as she deserves is to be de-
suoyed as major nation She is to
lose many of her industries and most
| OF her empire. An impoverished Japan
! will remove the major market of the
! Far East and will have a very real
meaning for United States cotton grow
ers and for some parts of United States
industry. 1t probably will be many years
before China can develop to a point
where she can replace Japan.
| Much OF the world Is looking to the
United States to fill the voids that will
be left when the war is over. This coun-
try is supposed to supply the markets
that Germany and Japan and Eastern
Europe and Italy once supplied, and to
provide those markets IN a much ex-
panded scale to take advantage of the
increased productivity of nations like
Canada and Great Britain and Latin
America with its vast supplies of raw
material. This country. too. is expected
to provide loans so that other nations,
hurt by the war, like France. Russia.
Italy and China, can buy what they
want in the United States
The outside world expects the United
States to supply it with market for a
greatly increased volume of goods-if
ever it Is to pay off the loans that it
hopes to obtain-yet the United States
is up against most serious problem of
finding market at home and abroad
for the stupendous productive ability
of its own industry and agriculture.
The things that the world will want to
sell here are largely things that this
country itself will have more of than
it knows what to do with.
+ Other nations are aware of this Sit
uation and are far less impressed by the
ability of proposed international ma
chinery to deal with the situation than
are some American officials.
The British think that the United
States is heading for economic trouble
after few years of postwar boom. As
a result they are trying to build a storm
cellar by strengthening their system of
empire preference and by seeking ar
rangements with the smaller nations of
Western Europe and with France.
Latin America at the Mexico City Con-
ference has shown that it is none too
confident of its ability to find per-
manent markets in the United States
1 for its surplus Russia, of course, has a
closed economic system and can insu-
late itself, partially, from outside trou-
BILE. France is trying to figure out ways
to get planned system Of its own
The point is that this war is to leave
behind it very grave dislocations in the
worlds economic setup. Europe will be
a mess. Asia won't be any paradise,
| Other countries are lookinp RI tho