Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-12-08
Change Of U. S. Policy
Seen in British Loan
World Economic Stability to Be
Aided By Move, Says Writer
Bv David Laurence


BY David Laurence
There's an extraordinary principle in
volved in the proposed loan by the
United States to Great Britain. All
previous intergoyernmental loans Of
any size have been made during a war
in which the ally or allies helped our
cause.
This is the first time during period
of peace that a loan has been offered
either for the specific purpose of re-
Mobilization and reconstruction or as a
means of promoting economic stability
in the world.
Such step, viewed in its broader
aspects, involves constructive change
of policy and the beginning of more
intimate period of interdependence than
has heretofore existed between the
United States and Great Britain.
There will be, of course, much snip
ing at the loan and considerable oppo-
sition both In Congress and in the
British Parliament. But the loan will
be approved eventually by both, because
it is imperative that such financial aid
be given in order to prevent the disin-
tegration Of the entire European eco
nomic structure and particularly the
impairment of the economic strength
of the whole British Empire.
U. S. as World Banker.
The British Commonwealth of States
buys large quantities Of American goods.
A private banker always shows concern
for the businesses that buy and sell
| goods in his community. The United
States as world banker is showing
! genuine concern for the future of world
trade and commerce.
This, however, is not due to any de-
| sire on the part Of the United States
! Government to make money out of the
/ transaction, but to a desire instead to
promote business and trade for the
American producers whose SURPRISES will
shortly be matter of worry, especially
| as unemployment will increase unless
markets for American production are
| enlarged.
/ The reason why an interest rate was
affixed was because the lending oper-
alton Is a business transaction between
| governments and not an act of philan-
thropy or altruism. The United States
| pays slightly more interest in borrow
ing from the American people, SO 1t Is
natural that an interest charge paid
/ by Britain should virtually offset the
American Governments expense in bor-
rowing
But even II there were no interest
paid. 1t would be to the advantage Of
the United States to make the loan. If
Britain suffers an economic collapse,
there is no hope for the continent Of
/ Europe to recover. Chaos in the eco
nomic world means more opportunities
for Communism and Socialism and
FasciSm depending on what the dema-
gogues can do in various areas to per-
suade the victimized peoples that only
through totalitarian methods can a
way out be found for them.
This was the basis on which Hitler
ism began in Germany. Economic chaos
usually breeds the conditions that make
demagoguery and relationships possible.
Simple Prudence.
No enc can foresee the political fu-
ture of Europe today. All that can be
assumed is that Great Britain is likely
to remain a friend in need Her terri
, tory became our main base of opera
lions against Germany Without Brit
aims steadfast defense, Hitler might
have captured that base and marched
southwark to the west coast of Africa
to begin his transatlantic operations
against the Panama Canal and South
America.
There are many persons who believe
that within a few years another war
may be shaping up in the world. Whether
their beliefs are fantastic or not, it
is simple prudence for the United States
to do all in her power in the imme-
date future to keep the British En-
pire from economic disintegration.
The precedent, however, is even more
important with respect to other coun-
tries. America, to be sure, has a huge
public debt already, but she will have
much bigger one to face If another
war ensues in few years. Hence loans
to other countries for reconstruction
purposes may be expected. A loan to
Russia has been discussed 1t is a DOS
sibility. If this is going to help Russia
to rebuild and take her place as a
satisfied partner in the family Of ma
tons, it may be the best way to assure
the economic conditions that will guar
antee peace
The United States has spent many
billions for destructive purposes. It has
embarked now on a policy of lending
for constructive purposes The Con-
gresS will be importuned to defeat these
loan agreements, but if the people real
ly have steered away from isolation and
the United States is to play role of
international helpfulness, then the
loans will be approved as logical corol-
larry to our decision to become a part
of the United Nations Organization.
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