The Wilmington morning star., 1946-07-15
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LIPPMANN
FROM PAGE ONE

tica1 obfuscation, it should wreck
the British loan and with it the
whole complex structure OF relief,
recovery, and reconstruction, there
is no telling how this country can
eventually extricate itself from the
consequences.
What has made the outcome in
the House doubtful is that with
two-thirds or three-quarters of the
Republicans against the loan, the
Democrats must muster very
nearly their full strength in order
to pass it. This indeed is a strange
situation. For here is a financial
transaction designed for no other
purpose than to prevent the de-
velopmeat of government = regi-
mented trading and to restore the
system of free enterprise in free
markets. 1t is opposed by the bulk
Of the Republicans in Congress who
rarely open their mouths except to
proclaim their belief in free entSS-
prise. 1t is supported by the bulk
of the Democrats whom the Re-
publicans accuse of wishing to regi
meat free enterprise through the
New Deal, through Socialism,
through Communism, and what not.
Could anything be more pro-
foundry irrational than the opposi-
ton Of orthodox and conservative
Republicans to a financial arrange
ment which is so orthodox and SO
conservative in its principles and
its purposes that it may conceiv-
ably be too orthodox and conserva-
tive for the world as it is today?
For the most serious doubt that can
be raised against these arrange
ments is that it is uncertain
whether they are sufficiently large
and bold to reverse the rising tide
Of international Socialism. That is
an arguable point. But the Republi-
can opposition do not raise this
point. They show no sign of under
standing it. If they did, they would
not oppose the credit; they would,
as ardent believers in free enter
prise, propose to make the terms
of this credit wider and more liber-
al.
The months Of delay have caus-
ed the decision on the loan to col
Tide with the collapse of domestic
price control. This is tae real rea-
son why the general public has
become confused about the loan.
At the moment when everyone
here at home is worried about ris-
ing prices and the shortage of
necessary and desirable goods it is
difficult to arouse much popular
support for a measure which ap-
pears to give the British addition
al power to become bidders in our
tight and inflated markets.
1t is the business of statesmen.
and Congressman are supposed to
be statesmen, to see not only what
is happening at the moment but
what is likely to happen later. 1t
is their business to see that this
British credit cannot be, and will
not be allowed to be, spent this
autumn, next winter, or even next
year. 1t will be used over many
years. Therefore, especially as for
elgn purchasing programs can be
controlled, there will be no 81, O0O,-
600, 900 inflationary impact on our
present markets.
On the other hand, there is little
doubt that in a year or two, our
domestic problem will not be
scarcity of goods and rising prices;
1t will, whether we have a con-
trolled boom, be unstable sur
pluses and falling prices. The pres
ent mtlationary condition is sure
to be followed by a postwar de-
flatlon, and when it sets in - as
1t Will when high prices call forth
large production - those who now
oppose the loan will wish that
Britain and the countries of the
sterling area were in a position to
buy In Jul markets. They will then
complain, not that they are giving
away Americon goods and Ameri-
can money, so that they cannot
1lnd enough purchasers of Ameri-
a goods.
They will then be as eager to
nave 1t forgotten that they opposed
THIS credit as many Of them now
would wish it to be forgotten how
strenuously, on the eve Of Pearl
Harbor, they opposed measures to
arm the United States.