'The American commodity barter plan prow posed by Senator James F. Byrnes, Democrat from South Carolina, has received the approval of President Roosevelt and with such powerful backing it ought to commend itself' to. the European nations concerned. Senator Byrnes proposes the exchange of American wheat and cotton for tin and rubber, and London, Brussels and Amsterdam are being sounded on' possibilities while other countries are also envisaged in the scheme. It is amazing commentary on world progress that after creating a complicated [system of economies and world finance to re-[gulate resources there should be a return to the primitive relationship between nations—that of bartering the surplus products of one country for the surplus of another. In recent years, there has been a developing tendency in barter-jing arrangements but chiefly between those countries whose currency resources are limited. [Within this group are included the "axis powers" whose limitations in this respect are well appreciated, but other countries have accepted Such arrangements. In regard to the American plan, economic factors of considerable spo ance are involved and its consummation may Rot prove so easy of attainment. The United States has surplus wheat and, cotton prod ion and the three coun Holland and. Belgium, control the works rubber and tin supplies. "For some years the world price evel for rubber and tin has been so tow that restriction schemes have been introduced. in order to improve price levels by limiting pro-Suction, but this Has not been applied to pro-Jaustion' of colton and wheat inthe United States where financial compensation has been paid to enable prices to be maintained rather than to restrict the production of unconsummable commodities. One is a ce-operative industrial scheme and the other a government charge, and, therefore, the two systems conflict except the important aspect that productive capacity is still far ahead of normal demand. In. the American scheme is the recognizable factor that European countries need wheat and cotton in order to build up adequate supplies for the emergencies which the rapidly deteriorating political situation demands, while. the United States will be able to overcome her difficult farming problems by disposing of surplus crops and, at the same time, build up resources. of raw materials not produced in the United States, such us rubber, of which the War and Navy Departments state, 225,000 tons should be acquired as a reserve." A barter standard of value is $,000,000 bales of cotton against 600,000 tons of rubber. The plan provides for pledges against resale on the world market Prices surpass the barter values and, generally speaking, the arrangement is attractive provided business circles can be persuaded that Political conditions demand such a scheme. In the meantime, as New York commodity circles report, it is better to wait for details, for while some of the democracies would appreciate this Contribution to their reserves they are already deeply committed to other sources of supply which might result In_serious consequences. if they were suddenly disrupted, The President's Appeal White the world will avait with some anxiety. the result of President "oosevel's personal appear to Herr' Hillery and' Signor Mussolini, there ie already" suieient. material available' to Justify the belief that thi. latest maneruvre in the interests of peace stands but jer chance of success, "The. cool Teception' which the. message has secured. in both Germany and Taly supports that view. Str. Roosevelt in effect suguents a reiproeal pledge Between those two ations and St other eoun= tries that for a period of ten. years at. the least, "and'23" Tt" "possible "none of them shaula Intinge the Others borders, and that Is forthcoming he. would week 16 convoke Wworid" diarmement and economic conference Jn"hich the 'United States would. parteipate with the proviso, however, that. it would' mot Become' party to political agreements or discussions which might oceur- concurrently. The move was a praiseworthy. one, and. fully Heeping with he. charaeier of "the" mon who made it. "At matters now stand, he, and only hhevcan now {ake the" initiative of personal Appeals tothe two Dictators; for the ime past when there cane any', more trips Berchtesgaden and Munich," That: experiment failed, and the temper of European democracies such that any" satesman seeking) to repeat that "unfortunate experiment" would speedily find hhimeett in. aistavour with his supporters, The message has been welcomed in most coune {ties execut Germany and aly, it contains. Soagestion which the 31 countries named can Sceept. ar being in accordance. with what has been their policy all along, and, there te practi= tally ne. Ukelivood. of ary" of them. refusing eton tne other hand: it may suit the. books of neither Germany or aly. it has become increasing clear during these last few months thatthe rulers of both those. states have now cash in-on the sacrifices which, they have Imposed "upon their people, nnd they" could only accept such a proposition at a price which the democracies will in all probability not be prepared to pay. The declarations of both Herr Hitler, and. Si jor 'Mussolini that they fare men of peace, may without undue cynicism be taken at their face value. Both of them do indeed desire peace, but not until they have made further territorial gains, atter which a period of peace would be' necessary 10 digest them, "Mr. Roosevelt has put the matter quite clearly. The statements" of Mr. Chamberlain and M. Daladier have long since removed any question of doubt from the issues involved. Point hax been added {them by this latest appeal of the American President, and by their answer both Germany and Italy) will be judged, not only by the people of the United States but by the whole of the world at large, From the point of view of the Former this latest development is of the greatest importance. Berlin and Rome may decide either to reject the appeal or ignore it. Tt does not matter much which they do, for in either event they would pin' upon themselves further responsibility for "whatever war may occur. and reinforce' the very inposiny, support which is, already" being given to President Roosevelt's foreign polley in the United. States eration when the President says in his message:— previously addressed you tu the matter fof the. settlement of political, economic, and Social problems by" peaceful Feeottrse to arms." Thut the cour arid: will be whole. worl rations. the vanaul That probably both Herr Hitler Mussolint perfectly well _unserstand. they appear to have in their minds is that if they can Win=-ad the chanees of that result Jare by no means as bright as they think—the amount of suffering they to endure will be comparatively. sivall that recompense can be obtained {rom the [vanquished nations. Fortunatel 'oF unfortunate Germany has airesdy shown how that need nek necessarily b
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