Evening star., 1945-06-24
U.S.. to Guide World
In Sterilization Plan
Observer Sees America PROVING
Desire to Cooperate
BIZ ODen L. Scott.

| Desire to Cooperate
| By O1Den L. Scott.
The machinery through which this
| country will try its hand at leadership
in the world soon will be set up in
| operating order. This time there is to
be no important slip-up growing from
opposition in Congress.
The United States Senate Is pre-
pared to accept membership for this
country in the new world league. Both
Houses of Congress then will agree to
assign American forces that will be
available in case of need by the Sc
curfty organization. The Senate is to
join the House in approving creation Of
machinery for world currency stabiliza-
ton. BY this same act, there will be
approval of world investment bank
and there also will be what amounts to
repeal of the johnson Act which now
bars new loans to nations that have
defaulted on old loans
broadened authority is being given
to the White House to negotiate for
tariff reductions. Congress, too, is 60
ing to increase the lending authority
OF the Export-Import Bank. Opposition
to all of these moves is proving to be
surprisingly slight. The result is that
where the United States held back from
venturing out in the world under Gov
ernment guidance after the last war,
this time it is taking the lead.
The net effect of what is happening
| ic m hot will ka
full supply of dollars available to the
world for at least a few years after
the war
During the war, other nations have
been accumulating dollars and gold in
large amount. This is due, in part.
to the fact that the United States has
been buying very heavily abroad spend
ing dollars, while it has been unable to
supply the civilian-type goods that
foreigners with dollars would like to
buy. Lease-lend has served to provide
Allied nations with United States prod
ucts at no cost to them in dollars, 50
that they have been able to hold on to
most OF the dollars that came their way
through spending by American soldiers
and in other ways.
Altogether, other nations now hold
more than $4,000, 100000 in gold and
dollars. A sizable proportion of these
holdings is available for use in purchase
OF goods. Then, on top of that, there
will be an added supply of dollars made
available through the world investment
bank and the currency stabilization
fund soon to be set up. The Export
Import Bank will provide another rather
important supply of dollars.
All OF this suggests that the American
venture into world cooperation is to
appear to be profitable venture for a
number of years, at least
xx
Export trade of above $4,000 900 900 a
year is being forecast by official planners,
with some estimating that trade on an
even higher level. This does not COM
pare with exports in the present lease
lend period when they have run around
14o0o,O0o00o on what amounts to
gift basis. American goods will be paid
for through imports which are being
estimated at around $4,000, 900 900 in
early postwar years and by use OF accu-
mulated dollars
The real test of the new machinery
for keeping the world stable will come
when the worlds dollar supplies have
dwlndled and when the postwar buying
boom inside the United States has worn
out Not until then will there be dem.
onstration OF this country's readiness to
go through with its ideas about under.
writing world prosperity. 1t is then, too,
that other nations will show whether or
not they sincerely intend to give up
trade controls of one kind or another.
Tariffs take on less importance in
today's world. There can be general
lowering of tariffs without lowering
Of the much more refined types of con-
troll that governments have evolved for
encouraging exports and discouraging
imports. In a period when dollars may
become scarce and when the United
States with its ability to produce goods
in vast quantities is seeking to find for
elgn outlets for any surplus of these
goods above home needs, there will come
the first definite test of the new poll
cies.
At first there will be plenty of dollars
and all should be we'll However, even in
the present stage there is some concern
In Great Britain over that nations dollar
supply and tendency to give UP war
time controls over imports only in
slow and careful way. There are signs,
too, that Russia is very anxious to OBJ
tain dollar loans in the years right after
the war. but she is not willing to assure
a freer flow of trade on an uncontrolled
basis.
1t is entirely possible, as a result Of
dislocations growing from the present
war, that the United States will find
when the test comes that the world is
less interested in cooperation than is
this country. That test, however. Ia
likely to be number of years away.
Right now and in the period ahead, the
trend is toward creation of machinery
for world cooperation, with the United
States leading the way.
The Opportunities Exist
Prom the New York Times