Evening star., 1950-05-14

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not one of the 48 States would be
as well off as it is today.
We must apply this lesson tc
our trading relations with other
countries. The circumstances are
different, of course, and require
different treatment. But the fun
damental principle is the same.
We have in recent history q
terrible example of what comes
from ignoring these facts.
Perils Of Economic Isolation.
During the 1920s, our own coun-
try and many other nations of the
world were governed by men who
did not appreciate the Importance
OF foreign trade. Their philosophy
was that each nation should pro-
tect its own producers by keeping
foreign competition out of the
country.
These short sighted men met
every problem with the method of
self1shneSs. When business fell
off, they were sure the trouble
came from foreign competition.
The answer, as they saw 1t, was
to keep foreign competition out of
the country. So they increased
tariffs and erected other trade
barriers
The result was inevitable q.
Economic isolationism ran its
bitter course to help bring on a
second world war.
Now, we are faced again with
the kind of questions concerning
foreign trade policies that followed
the first world war 80.
There are some people whose
only answer to these problems is
the same as it was 20 or 30 years
ago keep out the foreign compe-
tition"
We must not again start down
the road to economic isolation
Basic Trade Code Needed.
Inere are some employers and
workers who are sincerely worried
about the effect on their own
businesses of an increase in i'm
ports. To them I say: Do not be
mlsled by the hysterical clamor
OF the high tariff lobby.
With a growing economy, such
as ours, an increase in imports
is natural thing. I" e.
A gradual rise in imports over
the next several years may, it is
true. cause minor dislocations in
our domestic economy, the same
kind OF dislocations that occur all
the time in a dynamic economy,
in which new products and new
industries are constantly coming
into the market. 1t will not cause
more than that. because our sys-
TEN of negotiating reciprocal
trade agreements is set up so as
to give full consideration to the
claims OF every domestic industry
that fears possible injury from
increased imports.
But we do not, and should not,
try to shut out fair competition.
What we do need is to have a
majority of the trading nations
agree on a basic code of fair trade
principles and practices. I" =.
We have such a code in the
charter in the international trade
organization. Fifty-two nations
have signed this sacharter. a. +
hope the CONGRESS will ratify The
charter soon. -. =
Cooperation With Other
Countries.
There is mo room for economic
lSolationism in a world torn be-
tween freedom and Communist
tyranny :" ..
But there are still a few who
are too short sighted or. too sell
fish to work for the greatest good
OF the greatest number.
They are the same old Eyes.
but" people who always stand in
the road of progress. They no
longer say, as they used to say in
the 1920s and 30s, I'VE are iso-
lationiStS."
They've given up that line. Now
they say, "yes, we believe in inter-
national cooperation, but" ..
The "yes, but" boys underesti-
mate the intelligence of the
American people "'.
I am confident that we shall
continue to cooperate with other
free countries to increase our
common welfare.
I am confident that we shall
continue to defeat isolationism.
This is the way to defeat COM
munism.
This is the way to build a pros
porous world.
This is the way to achieve free
dom and peace.