Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-04-22
Caution in Economics
Seen in New President
Observer Says Other Countries
Move Toward Isolation
BIZ ODen L. Scott.

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By ODen L. Scott.
The relationship Of this country to
the world very probably will be differ
ent under President Truman than it
would have been under President
Roosevelt. This difference will be re-
vealed in an attitude of caution in
making commitments that would not
have prevailed to the same degree In a
fourth term.
There probably will be no hesitation
on the part Of the United States this
time in entering world security or
ganization. The people of the country
are sold strongly on the need for the
type of organization that is to be Gre
ated at San Francisco. It is more in
the field of economic relations of the
United States with the rest Of the world
that the change of administration will
be most important.
Mr.. Roosevelt saw it as the RESPONSE
.bility of the United States to underwrite
world prosperity after the war and to
assume leadership not alone in political
affairs but in economic affairs as well
He was ready to use his very great
persuasive powers to convince Congress
that this country should assume the
obligation of leading the world back
toward policy of relative freedom Of
trade by assuring that its own markets
would be open to goods of other nations
and that its surplus capital would be
available for large loans on a basis of
low interest rates and plenty of time
for repayment
Mr.. Truman Is likely to express much
the same view that Mr.. Roosevelt ex-
pressed. The point, however, is that
Congress will require a great deal of
convincing, if it is to approve policies
that will put the former Presidents
ideas into effect. The new President
is less likely TO pressure Congress in
the way that Mr.. Roosevelt did. Further
more, he is from Missouri and may
want to be shown before going along
with some of the ideas and plans that
had been taking shape.
A basic test of the attitude Of the
United States toward its obligations
in a postwar world will come with
action by Congress on extension Of the
Reciprocal Trade Agreements Act.
President Roosevelt asked Congress to
give the White House power to nego-
tate agreements that would reduce
tariffs so per cent below the Janu-
airy, 1945. level. The prospect that
Congress would approve this request
was no better than $3.50, even with
Mr.. Roosevelt using his best persuasive
powers. 1t remains to be seen how
intensively President Truman will bat
tie to force this proposal through
Congress. He will get an extension
of the present act. The issue, how
ever, is on how much added power
is given to reduce tariffs.
There Is to be another test on the
issue of world currency sterilization
Mr.. Roosevelt was prepared to pressure
Congress to approve the essentials Of
the plan for currency sterilization
worked out by experts of A nations.
Congress, however, was cooling to that
plan and insisting upon rather extern
sive compromise. There is some ques-
ton of President Truman's determine
ton to try to force Congress to take
something about which it is doubtful.
Russia's prospect of obtaining long
term loan in this country Of anything
like the $1,000 900 originally desired
Is considerably less at present than it
was before Mr.. Roosevelt died. There
now is every prospect that the intent
of Congress to bar use Of lease-lend
for postwar reconstruction and rehabili-
tation will be respected fully by the
White House. The private banker view
point is likely to get more attention.
1t is not improbable that Mr.. Truman
shares some of the feeling in Congress
that caution should be applied in con-
sidering plans for United States world
leadership in economic affairs.
The new President, Furthermore, must
be expected to move slowly while he
gets acquainted with a field in which
Mr.. Roosevelt operated with such sure
| ness after IL years of experience in it.
| All of this is important for the effect
| that it is likely to have upon the policies
| of other nations. The British and the
| Russians always have been less conf
dent than the officials of this country
in the effectiveness of world security
| organization as a means of solving the
worlds problems. They have believed
in supplementing any such organization
| by private agreements Of their own.
| Their deepest interest was in the eco
| 70 Sy, S1ic ,kryy
in its relations with the rest Of the
world.
If the United States is to move with
| greater caution in making large-scale
loans for postwar reconstruction, that
fact can have great importance. If
there are signs that borrowers abroad
are to have difficulty again in repaying.
owing to United States tariff and trade
policies, that also is matter of vital
Importance. Russia already has q
closed type of economic system that per-
mits her to follow policy of economic
isolation. The British have been think
ing in terms OF stronger empire prefer
ence policies and of a more inclusive
sterling bloc after the war. Mr.. Roose-
welt was prepared to resist those ten
denotes by showing liberal United
States policy. France is inclined to eco
| nomic nationalism.
1t seems almost certain that the dar-
ing and ambitious approach that Mr..
Roosevelt was prepared to take in this
field will not, and probably cannot. DO
f.ir-