Evening star. [volume] (Washington, D.C.) 1854-1972, 1960-11-27
Defending the Dollar

@AS @oSt VA4dt OCCICGdTy Ol treasury
Anderson apparently lost battle in
Bonn does not mean that our Govern
ment has lost the war in its efforts to
redress the adverse balance of inter-
national payments. There are MANY
fronts, aside from that represented by a
$6O0-million slice of the cost of main
tanning American defense troops in West
Germany "a check which the Bonn
Republic has declined to pick up), on
which this current deficit trend and its
accompanying outflow of gold may be
attacked
MIR. Anderson, accompanied by I'm
dersecretary of State Dillon, sought re-
lief on what has been a fixed yearly
commitment, and its transfer to West
German books would have had the de-
sirable quality to us of permanent"
easing OF our governmental expendi-
lures abroad. But Mr.. Anderson him
self Is not an innocent abroad" and it.
is unlikely that he expected complete
victory in few hours of conversation
In the West German capital. If not,
what did he accomplish? First of all,
perhaps, he dramatized both here and
among our European allies a problem
that he has warned of perSistently for
nearly two years past BY visiting Bonn,
Paris and London he served face-to-
race notice that there is official deter
mination in Washington to protect the
dollar and that the time has arrived,
even II belatedly, for our allies to recog-
n1ze this. new administration is not
likely to feel otherwise. And while Mr.
Anderson did not accept, as substitutes
for his request, various other West Ger
man proposals. stepped-up foreign
aid program, easing of trade restric-
lions, advance repayment of an out
standing debt, etc., these remain on the
record as items of future help. It was
agreed, furthermore, that there will
be additional discussion and negotia-
homecoming to warrant an assump-
ton that more tangible results may yet
be attained.
No direct financial aid was asked in
Paris or London, but British authorities
let it be known that they would support
further American efforts to persuade
Atlantic Alliance nations to shoulder
more OF the common defense expense.
Britain already has taken steps to
tighten the pressure on the dollar by
lifting curbs on the import of American
goods, by reducing the bank rate and by
restrictions on gold sales in the London
market.
AS for other fronts, it is significant
that both the Eisenhower administra-
ton and President-elect Kennedy have
emphasized the Importance of greater
export effort by American induStry-an
effort that must be accompanied by
continued governmental pressure for
the lowering of the barriers against our
goods, and by industry determination
that In both quality and price our prod
ucts should not be at a competitive dis
advantage. If needed, too, there is the
possibility Of restrictions on currency
taken abroad for tourist travel or on the
customs-free allowance on tourist pur-
chaseS. And, insofar as it affects con-
f1dence in the dollar, there remains the
requirement that massive spending and
deficit financing be avoided if possible.
The acknowledgements problem
has not emerged suddenly, any more
than it has been resolved by one mission
OF limited objective. The Anderson
Dillon trip has broadened recognition
OF the problem, however, and to that
extent has helped progress toward
solution.