MONEY POWER

Wairarapa Times-Age, 26 June 1939, Page 5

MONEY POWER

AGAINST TOTALITARIAN STATES PROPOSED AMERICAN LOANS. SENATOR BORAH OPENS ATTACK. By Telegraph—Press Association —Copyright. WASHINGTON, June 25. Tim lending of 500,000.000 dollars io foreign Governments lor Iwo years under President Roosevelt s 3.800,-000,000-dollar self-liquidating loans programme is interpreted as a first move to employ the United States’ money power against the totalitarian States’ subsidised export systems. Eventual mobilisation of idle bank credits for the campaign is envisaged. It is expected tha.t the bulk of the money will go Io South American republics.. The President, according to tho Washington correspondent of the "New York Times" espoused a plan drawn up by Mr Adolfe Berle with the Administration’s economists. The Administration. worried by German trade gains in South America and elsewhere, fears particularly that if war does not develop the totalitarian States’ planned economy, plus their ability to use cheap labour and get tho benefits ot controlled economy, offers a serious long-range threat. , Worked out in detail, the plan is to use the accumulated and at present stagnant bank savings of the United States to finance foreign trade. The theory is that the plan will make possible effective competition without depressing the pay of American labour and without, the fear of inflation. A member of the group explained that the plan will employ the best ot the Nazi and Fascist methods, he added, and "we will beat them at thenown game." ... . It is asserted Iha I the plan will not conflict with but rather implement Mr Cordell Hull’s reciprocal treaty programme. The latter is also intended to break down barriers and combat totalitarian practices. It is reported without confirmation that there are prospects of large Government loans being held out to Mexico and Bolivia if they will settle >n a compromise basis the differences arising from the expropriation of American properties. Senator Borah, in the Senate today, launched a Republican attack on tho plan, declaring that no new foreign loans should be granted till provision had been made to take care ot those already long overdue. "It seems to me." he added, "that the plan simply means turning over vast amounts of the taxpayers’ money for South American politicians to play with." Senator Wagner replied that it was rather a matter of financing exports than lending money. President Roosevelt stipulated that the proceeds from advances must be spent in the United States,