The Daily Alaska empire., 1946-11-09
American Credit Policy
New York TineSl )


 One of the familiar themes of both Communist and pari-Slavic propaganda, developed during the Paris Conference, the charge that the United States has grown rich on the war and Is now using
 it's economic and financial power in an imperiaistic adventure ensave the world This charge oveTlooKs the nearly fftytwo billion dollars expended for Lend Lease aid and relief to our wartime allies, much of which went to panSlavic bloc. But it is charge which has been repeated so persistenty that 1t has scanned inevitable that Government would sooner or later be forced to take note of it one of the factors with which international politics made. This the Government has now done with the indefinite suspension of S90000000 in credits to Czechoslovaka whose Government has made it plain that it misunder stands both the motives and the purposes of American assistance to European countries. This suspension follows previous temporary suspension of like credit Poland later released, and it comes at time when the American Government is requesting Russia to negotiate for settlement of it's eleven Lend-Lease account
 The new circumstances and tne reasons assigned for the recent actions suggest that the time has come for the various agencies involved to work out definite and consistent policy for this country s credit and relief activities in order to put end to misintepretatons of this kind Certain principles on which such policy should be based appear to be self evident The first is that are pursuing dollar diplomacy and have desire to force loans on any country which in them a threat of any kind to it's political economic independence. The second and equally important principle is that loans are not  furnish like any prospective private borrower vincing proof that by virtue of it's political economic and trade policies it is good credit risk The first principle has already been applied in the case of Czechoslovakia, the second in the of Poland. Beyond that it would also appear essential to make certain that neither Lend-Lease surplus goods transferred to other countries used in kind of black market for political financial profit, as Czechosovakia is reported to have done Finally since international relief financed in the main by the United States, has assumed proportions which make it an important factor in the economy of many countries, it should be coordinaed with credit policy i'll such way that it cannot be mSuSed to fill up economic gaps created by the policies of these countries and possibly subsidze an increase of armaments
 In the development of such a policy the State Department will have to have the decisive voice. since our credit and relief policies inevitably impnge upon our foreign policy. But it would be advisable to develop close and automatic liaison between the State Department, the Treasury, the Export-Import Bank and whatever organization takes relief after 1 UNFRA winds up at the end of the year American foreign and credit policies did not always go hand in hand after the last war the detriment of both, and with ultimate harm to the American people That, too, should not happen again.