Evening star., 1947-03-06
Text Of Truman's Address at Wacoss

Ill > AO I
that is most conducive to freedom
iof enterprise is one in which the
major decisions are made, not by
governments, but by private buyers
and sellers, under conditions Of ac-
tive competition, and with proper
safeguards against the establish
ment OF monopolies and cartels.
Under such system, buyers make
their purchases, and sellers make
their sales, at whatever time and
place and In whatever quantities
they choose, relying for guidance on
whatever prices the market may af-
ford. Goods move from country to
country in response to economic op-
portunities. Governments may i'm
pose tariffs, hut they do not dictate
the quantity Of tfade. the sources
Of imports, or the destination of ex-
ports. Individual transactions are a
matter Of private choice.
| Under Economic Pressure.
| The pattern Of trade that is least
conducive to freedom OF enterprise
is one in which decisions are made
by governments. Under such q sys-
tenn, the quantity Of purchases and
sales, the sources OF imports and the
destination Of exports are dictated
by public officials. In some cases,
trade may be conducted by the state.
In others, part or all of it may be
left in private hands. But, even so,
the trader is not free. Governments
make all the important choices and
he adjusts himself to them as best
he can.
This was the pattern of the 17th
and 18th centuries. Unless we act,
and act decisively, it will be the pat
tern of the next century.
Everywhere on earth, nations are
under economic pressure. Countries
that were devastated by the war are
seeking to reconstruct their indus
tries. Their need to import, in the
months that lie ahead, will exceed
their capacity to export. And so they
feel that imports must be rigidly
controlled.
Countries that have Jagged In
their development are seeking to
industrialize. In order that new
industries may be established, they,
too. feel that competing imports
must be rigidly controlled.
Nor Is this all. The products of
some countries are in great demand.
But buyers outside their borders do
not hold the money Of these coun-
tries in quantities large enough to
enable them to pay for the goods
they want. And they find these
monies difficult to earn. Importing
countries, when they make their
purchases, therefore seek to dis
criminate against countries whose
currencies they do not possess. Here,
again, they feel that imports must
be rigidly controlled.
| Methods Of Control
One way TO- cut down on imports,
is by curtailing the freedom of
traders to use foreign money to
pay for imported goods. But re-
course to this device is now limited
by the terms Of the British loan
agreement and the rules of the
international monetary fund. An
other way to cut down on imports
is by raising tariffs.
I But If controls over trade are
really to be tight, tariffs are not
enough. Even more drastic meas
ures can be used. Quotas can be
imposed on imports, product by
product, country by country, and
month by month"; Importers can
be forbidden to buy abroad without
obtaining licenses. Those who buy
more than is permitted can be
fined or Jailed. everything that
comes into . country can be kept
within the limits determined by
la central plan. This is regimenta-
ton. And this is the direction
in which much of the world Is head
ed at the present time. r
If this trend is not reversed, the
Government Of the United States
will be under pressure, sooner or
later, to use these same devices in
the fight for markets and for raw
materials. And if the Government
were to yield to this pressure, it
would shortly find itself in the busi-
ness of allocating foreign goods
among importers and foreign mar
kets among exporters and telling
every trader what he could buy or
sell, and how much, and when, and
where. This is precisely what we
have been trying to get away from,
as rapidly as possible, ever since the
war. It is not the American way.
It is not the way to peace.
Alternative is Offered.
Fortunately, an alternative has
been offered to the world in the
charter Of the international Trade
Organization that Is to be consid-
cred at Geneva in the coming
month. The charter would limit the
present freedom of governments to
impose detailed administrative reg
ulations on their foreign trade. The
International Trade Organization
would require its member nations to
lconf1ne such controls to exceptional