Evening star., 1945-02-25
Big Looms May Sove
Capitalist System
Observer Sees Dollar Used
Against Planned Ways
BIZ Owe,, L. Scott.

Against Planned Ways
By Ouen L. Scott.
President Roosevelt Is counting upon
the American dollar to set the world up
In business again after the present wars
and, in so doing, to smooth over some
Of the dislocations that will follow de-
struction Of Germany and Japan.
Whether or not he succeeds in his
plan is to depend upon two factors. One
Of the factors is the willingness Of Con-
gress to open the way to big new dollar
loans. The other Is the readiness Of the
remainder Of the world, in return for
loans, to shape its policies In accord
ance with the ideas of the United States.
The President Is asking Congress now
to approve the first part OF his program.
He wants the johnson Act repealed 50
that loans again may be made to Great
Britain, France, Russia. Belgium and
Italy. Those nations now are not en-
titled to new loans because they de-
faulted on old loans made by the United
States. After that, the President wants
approval Of plan for world bank and
for new international monetary fund
to stabilize currencies. The United
States would put up $4,000, 900 900 to
get these operations on their feet. Then
the lending power of the Export-Import
Bank. now s7o0 000. 900, is to be increased
to $4,000, ,ooo, 900 If Congress approves.
Prospect for success Of this part Of
Mr.. Roosevelt's program is quite bright.
After investing more than $3.50. 900 .o0o.-
600 in war, Congress Is unlikely to balk
at an investment Of few more billions
for use in trying to help the world get
back to normal.
The real test, however, will come in
the readiness or lack Of readiness Of
other nations to adopt line Of trade
policy, in return for loans, that will re-
store the kind Of world that this coun-
try apparently wants. There is far less
optimism among informed oficials over
the prospect for success Of this part Of
the program than over the first part.
President Roosevelt, together with
Josef Stain and Winston Churchill,
has decided to destroy the economy Of
Germany to all intents and purposes.
This country is determined to do the
same with the economy of Japan. There
is widespread popular support for this
line Of policy. A problem, however,
arises in seeking to reorganize the world
without Germany and Japan in prorni-
nent roles.
t4+
Germany was the center Of trade for
much OF Europe. France and England
found important markets there. The
Balkans were oriented to Germany a.
An outlet for much Of their trade. Italy
had its ties in Germany. Now Italy il
impoverished and faces a bleak future.
Germany will be impoverished and
chopped up into pieces. The result Ia
quite clear. Balkan areas, Poland, Fin
land, Czechoslovakia, maybe much Of
Germany itself. will be forced to orient
themselves to the socialistic economy OF
Russia, and Russia will take the place
that Germany filled and will have tech
niques Of exchange that will make her
neighbors very dependent upon her.
France, under Gen. Charles de Gaulle,
is moving toward a planned economy Of
her own in which imports will be con-
trolled. The emphasis Is to be upon
self -sufdciency. utilizing resources for
merly under German control and in
postwar to be brought under French
control.
The situation on the continent, with
vacuum where Germany was, Is going
to complicate seriously the problems Of
Great Britain. The British, very de-
pendent upon the continent for trade,
will find new difficulties Great Britain
is aware Of the fact and is planning to
go in strongly for empire preference and
for planning in foreign trade.
All of that is not in accordance with
the desires of the United States. This
country is seeking to restore much freer
world trade in capitalist world. Yet
the postwar prospect is for q much more
tightly controlled world trade than in
prewar and for emergence of various
brands Of state socialism or state cap-
talism.
This situation will be aggravated In
the Pacific, where Japan faces destruc-
ton. The Japanese before the war were
big customers for American cotton and
for other American products. After the
war they will be market for very little.
1t is doubtful if China soon can I'LL the
vacuum that will follow Japan's down.
fall.
There is more than a chance that the
United States after the war will find
itself rather alone in the world as an
exponent Of capitalism Of the kind that
the people Of this country prefer. This
is likely to be true, as officials here
recognize, even though the United States
tries its best to underwrite q return to
prewar conditions with generous dollar
loans.
AS the situation is working out, this
war has created such deep dislocations
that nations Of Europe, in particular,
are forced to alter their ways Of doing
business. These alterations are in
fluenced by the emergence of Russia as
a dominant power, and Russia offers the
methods Of state socialism Other ma
tions are expected to be glad to get the
dollar loans that the United States will
offer, but they are not expected very
materially to change their planned ways
in return for the dollars.