Evening star., 1947-09-05
European Economy
Seen Unready for Any
Plan Of American Aid
Propaganda Mills Stort
High Pressure for Extra
Session of Congress
Bv David Laurence

OF American aid.
The propaganda mills nevertfe-
less are starting. America is about
to be high pressured into the calling
of an extra session of Congress.
Undersecretary of State Lovett is
limiting that the situation Is grave
and that some emergency plan must
be made available right away.
The truth is that if Congress did
come into session, it might decline
to be hurried because the facts have
not been persuasiyely mobilized.
Present information indicates that
Europe has not done many Of the
things necessary to be done to de-
serve American aid.
Everybody, of course, wants to see
Europe helped to get on her feet.
Out of the expected receipts for the
fiscal year 1948, nearly $4,000, ,000, 900
over and above the domestic budget
expenses of the United States Gov-
eminent are available and can be
appropriated for international pur-
poses. OF this sum, $4,000, ,000, 900
already has been earmarked for
international uses.
Operation Rathole."
What the American people want,
however, is to make sure that they
are not beginning operation rat
hole" as the term is being used in
Washington nowadays to describe
the futility of giving a blank check
to Europe.
The American people are entitled
to know what happened to the $3,-
350,000,0O0 of the British loan al
ready spent. Has it been squandered
by an incompetent Labor govern
ment in London which has been
playing domestic politics with Amer
lean funds? Why has British pro-
duction failed to measure up to the
announced goals? Why are there
wildcat" strikes in the coal fields
when coal is so vital to Britain's
economy? The mines are govern
ment-owned and the Labor govern
ment Is the employer.
Evidences of mismanagement are
piling up. If there is no assurance
that the forthcoming loans will not
be mismanaged, will Congress be
in the mood to pour out more money
in the same direction?
1t will be answered in Britain that
these things are none of Americas
business and that the kind Of polit.
ical administration England has Is
of no concern to America. But the
money and goods to be loaned are
American. ANY banker who lends
money without assuring himself OF
the uses to which the money is tc
be pat isn't very good banker anc
has little regard for the depositors
money.
The United States came out of the
war with the biggest debt any nation
ever faced. America still has
adequate resources but, as President
Truman said significantly at Ric
de Janeiro this week. these resources
"are not unlimited.
Americas disinterestedness Is al
ready being questioned. In France
a public -opinion poll shows a belief
that America suggested the Marshall
Plan primarily to save her own
domestic situation-to keep exports
going and thus to maintain full
employment.
Actually America would have q
better balanced situation If the ex-
ports did drop off somewhat so that
domestic prices could come down
instead Of being bid up constantly
and kept at inflationary levels by
European demand. If American
automobiles, for instance, aren't ex-
ported in such quantities, the home
market will quickly absorb any pro-
duction that is now going abroad
Agricultural prices are being sup
ported by an artificial demand from
Europe which will decline as soor
as more people till the soil abroad
More Pay for Less Work.
The trouble with Europe is tha'
politicians have encouraged the peo'
pie, especially in Britain, to believe
that they can get more pay fol
less work" The same unsoundnes!
that the American worker has beer
taught is imbedded in the doctrines
preached to the British worker. i
would be unfortunate if the politl'
clans abroad thought they coule
high-pressure America into supply
ing the money to bail out Europe's
mistakes and, particularly, her ad.
ventures in socialism.
Europe does need help but cast
convincing enough to get the Ameri'
can Congress to pay out billions
more than it has already appro.
priated has not yet been made. May.
be it will be. Foreign Secretary
Bevin's remarks about "redistribut.
ing gold" will be misunderstood as
meaning that America should give
away her gold. Mr.. Bevin probably
did not have any such idea ir
mind. BY redistribution" is meant
such a Encouragement of world trade
as will encourage America to buy
more from abroad and pay for il
In gold, or else to set up system
of lending for productive purpose
to bring about the export of some
of Americas abundant gold supply
In theory, it is sound, long range
approach. But it all comes bacl
to the proper use of funds loaned
Likewise, it raises the interesting
question as to why Britain had mor'
geld as of July of this year thar
she had at the end of the war
Maybe Britain hasn't done enough
"redistributing" herself.
The problem does not change M
matter what terms are used. Th
outside world is not dollar hungry,
but it is goods hungry" There
nothing wrong with European econ
omy that hard work, steady produc
tion and sound fiscal management
will not cure If the politicians hav
the courage to tell the people ther
the facts of economic life.
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