Evening star., 1949-06-12

Is difficult, and requires flrm de-
termination and steadfast effort.
We know that If we are TO build
o lasting peace IN the world we
must achieve three essential con-
ditions.
First, this Nation must be strong
and prosperous.
Second, other nations devoted to
the cause of peace and freedom
must also be strong and prosperous.
Third, there must be an interna-
tional structure capable Of adjust
ing international differences and
maintaining peace.
The first condition is our own
strength and prosperity.
1t Is unusual for this Nation TO
maintain substantial armed forces
in time of peace. Yet, so long as
there is threat TO the principles of
peace-the principles on which the
| United Nations is founded-we must
maintain strong armed forces ANY
uncertainty as to the ability or the
willingness Of the free nations Of
the world to defend themselves Is
an invitation to aggression. We
have seen the truth of this state
ment in the outbreak of two world
wars.
Our national strength is not. how
ever, simply a matter of weapons
and trained men. Even more i'm
portant are our economic growth
and continued prosperity.
World Economy Center.
Our economy Is the center Of q
world economy. The hope of eco
nomic revival throughout the world
depends in large measure upon the
prosperity of the United States.
If our production and purchasing
power are badly impaired, If the
buying and selling and investing
that we do in other parts of the
world are cut of, other nations will
be plunged into chaos and despair.
1t Is prime belief Of the Com
munist philosophy that our kind Of
economy is doomed to failure. The
Communists predict that our pros-
'perity will collapse-bringing the
rest OF the free world down with
1t. But they are wrong-wrong
as they can be.
We know more today about keep
ing our economy strong than we
have ever known before. We know
how to strengthen our economy
through the expansion Of produc-
ton and purchasing power and the
improvement Of standards of living.
We understand that constantly ris-
ing national output, increasing real
wages, and a fair income for farm
ers are basic elements of our eco
nomic strnegth.
To maintain these elements of
prosperity, it is not sufficient to
drift with the tide. We must take
advantage of the new opportunities,
the increased demands which re-
suit from the natural growth Of
our population. We must develop
our natural resources and restore
those we have depleted or wasted.
We must establish q fair distribu-
ton Of business opportunity; We
must have a free labor movement
able to hold its own at the bargainS
ing table; we must protect the pur-
chasing power Of Americans against
the hazards and misfortunes OF life.
Steps Are Necessary.
These steps are necessary II we
are to continue strong and pros
porous. That is why our domestic
programs for the development of
resources, for protection against
economic hazards, for the improve
ment Of social conditions, are fun
damental to our national effort for
peace.
The second condition essential to
peace is that other nations, as well
as our own, must be strong aRd
prosperous. 8
, We need other nations as our
allies in the cause of human freedom.
We have seen free nations lost to
the democratic way Of life because
Of economic disaster. We know that
despair over economic conditions
will turn men away from freedom
and into the hands Of dictators.
1t Is to our interest, therefore; to
aid other nations to restore and
maintain their economic health.
Our aim is not only to help other
nations to help themselves, but also
to encourage economic cooperation
among them.
We have taken the lead in Coop
Grating with other nations to re-
store a mutually beneficial system of
world trade. No nation today CAM
achieve prosperity in isolation.
Only through participation in the
trade Of the world can q country
raise its own standards of living
and contribute to the welfare oil
other nations.
Symptom Of Anarchy.
For years before the war, world
trade was crippled by high tariffs,
import quotas, exchange manipula-|
ton, and other artificial devices for
security commercial advantage.
These practices were a symptom oil
international anarchy. They re-
suited, ultimately, in idle ships, idle
men and economic chaos.
We have come long way toward
correcting these evils. Since 1884,
we have worked out a multitude Of
agreements with other countries tol
reduce specific tariff barriers. I'M
the general agreement on trade and
tariff of 1948, we struck a world
wide blow at these obstacles to
trade.
But this work is not yet finished.
If we are to succeed 1t Is vital that
the authority to negotiate reciprocal
trade agreements be extended. WEI
should then 60 on to establish aI
permanent international trade Or
ganization to apply standards Of
fair dealing in the commerce among
nations.
The same cooperative principle
has been applied in our great un-
dertaking to restore the economies
of the western European nations
to a Sustaining basis. The
food, fuel and equipment which We
have sent to Europe have been
matohed by the efforts which these