The people's voice. [volume] (Helena, Mont.) 1939-1969, 1946-07-05

meet the transitional postwar def
cts in its current balance of payment;
to aid them to maintain adequate re-
serves of gold and dollars; and to as
sist the British to assume obligations
of multi-lateral trade. Apparently, the
clique. Wheeler and LaFollette, has
forgotten the Significance of the COM
bination of these factors Bluntly, it
means that the British are faced with
a position in which their country has
not the means to pay for its essential
imports of food and materials. Other
factors, the reduction of overseas in
come, the fall in shipping earnings,
and the wartime cut in exports all
form a critical economic picture for
the British. There is no doubt that
the account can be squared in time,
but certainly not Immediately. Ex-
ports, obviously, should be expanded
as quickly as possible, but in view of
Britain's loss of income and the ac-
emulation of debts abroad, it is not
to postwar status. According to the
British themselves it will require a
Herculean effort to effect a reconver-
sion to the position before the war. At
the end of this year alone, Britain will
be short many millions of pounds in
foreign exports. Hence the need for
assistance from the United States. at
present the only country wealthy
enough to provide it.
This transaction will increase en-
ployment in the United States, and in
crease the income of the American
people. Further, the loan will enable
the British to pay for their essential
imports during the next few years and
also to Immediately accept the prin-
ciples of fair and non-discriminating
and trade practices. In fact,
the whole world will greatly benefit
by an expansion of trade on such a
Dasis-contrary to Senator LaFol-
cites decision.
Loan Refusal Can Have Disastrous
Effects
II the British fail in securing the
oan, they will have to take vigorous
measures to curtail imports and push
heir exports onto foreign markets.
Exports from the United States will
hen be excluded as far as possible
from the United Kingdom. The COM
members will then concen-
trate on each other. Surely we haven't
forgotten that such policy would
divide the world into two clashing eco
lomic blocs The world would then
De at economic war, which would be
ragic for the people of the United
states and the British and the world.
This is one of the vital factors which
1r. Vinson pointed out and Senator
.aFollette forgot to consider. The
Wisconsin gentleman said in his pa
er, lit (the loan) should be done in
n honorable manner-either as an
ut and out gift, or as a straight in
crest loan from the Export-Import
ank, the Reconstruction Finance cor
oration or other established govern
lent lending agencies" We are re-
minded again that the British plan to
andle their own internal reconstruc-
ion and development, whereas, the
me of credit is to meet a large ex-
ernal emergency. AS an island ma
ion, England relies heavily on trade
Nth other countries The balance of
What she exports and imports has
een seriously dislocated by the war
britain needs credit in foreign coun-
ries to continue buying until she can
estore her trade. No international
,ank is intended to deal with such
pecial needs. The loan to the British
s a long-term emergency credit UNI
uited to the purposes of such a bank.
The loan has been criticized for
many reasons irrelevant and relevant,
UGH as: the purely financial terms
re unsatisfactory; it carries only two
'er cent and is repayable in so annual
beginning at the end of
951. Moreover, the agreement pro-
ides for the temporary suspension
f interest payments in any year in
yhich Britain has difficulty in squar-
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