The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1945-11-07
BY WALTER LIPPMAN
MR.. BARUCH WRITES A LETTER

MR.. BARUCH WRITES A LETTER
Mr.. Baruch must have meant to
influence the financial negotiations
between the British government
and our own. That much is clear,
not from the contents of his letter
to Representative Gore Of Ten
nessee, but from the fact that he
chose Monday of this week to pub
fish it. For just in these days the
negotiations are at that delicate
and critical point where the ques-
ton is whether the Socialist gov
eminent of Great Britain will
agree, in return tor a dollar loan,
to make the attempt, which is diff
ficult and full. of risk, to re-estab-
lish the free international mar
kets which our government desires.
1t is still uncertain whether the
views Of the two governments can
be reconciled. If they are not, the
western world, already graveIy
divided from the Soviet Union,
will be divided within itself, Thus
the failure of Britain and America
to agree on a common regime Of
international trade for the democ-
;racies would be a shattering blow
to the unity and stability of the
world.
Mr.. Baruch expresses no concern
about all this, and as a matter of
fact his letter could hardly have
been more subtly contrived to
wreck the negotiations and prevent
a reconciliation of the British and
American views. For it incites
those very suspicious on both sides
Of the Atlantic which stand in the
way Of a constructive compromise
namely, the American fear OF
being rocked into giving away our
patrimony to foreigners, and the
British fear Of becoming subser.
Went debtors of the United States.
The effect is all the more de-
structive in that the letter inter.
venes by indirectiin and insinua.
ton rather than by a straightfor.
ward and explicit statement oil
what its author thinks should and
should not be done.
Mr.. Baruch is concerned - judg-
ing by his letter-with two aspects
of foreign lending. The one is that
we shall not extend credits which
enable foreigners to buy more
goods in our markets that we are
able to produce for export. This
other is that we shall not finance
other countries Ito nationalize
their industries against u.s." This
might destroy our own competi.
tive system" If that is all there
lis to say on these two subjects, the
conclus on is very simple. Make nc
conclusion is very simple. Make nc
foreign loans; then by one master
stroke we shall prevent foreigners
from initiating prices in our mar.
ketS and from Matchmaking their
industries against us.
But, obviously, there is a LOT
more to be said on these subjects
than Mr.. Barch has said. One is
that while large foreign credit,
can, if their use is undirected AND
uncontrolled, aggravate initiation.
the stoppage Of foreign purcha ses
by refusing credits would certainly
|prevent the kind Of full productior
which alone can prevent imitation
If Mr.. Baruch knows any wav
. given the existing structure Of the
American economy, by which pro.
lduction can be maintained At ,
thigh level without very substantial
exports, he knows something tha1
No one else knows. It is, therefore
. grossly misleading to talk as 3
foreign lending were form n
national sacrifice and charity wher
lin fact it is a national necessity