THE CHINA MAIL, FEBRUARY 21, 1938.
This Interdependent World
HE root causes of the distresses like peoples, they are tempted to Unless the policy can be changefl, broken up into six independent from which the merrace of rectify by force what seems to them reverses will come where there states, and no attempt was made to war springs are economic. In par- a great injustice.
might be prosperity. Most of the find a substitute for the economic ticular, just as the distresses în in-
nations are learning that this la unity they had enjoyed. These six dividual
al countries are largely due to
Now it does not seriously matter, so. But they are afraid to take states, distrustful of one another, the maldistribution of these coun- from the point of view of trade, the first step. Who shall lead them? not only raised huge armies, but tries' available wealth, so the strains who exercises political control over The best hope lies in the co-opera- set up high tariffs which completely and stresses among the nations are a particular country, so long as its tion of America and Britain, the disorganised their trade. Their due to the maidistribution of the resources are freely open to the two richest and most powerful of currencies were disorganised,
and world's wealth among the world's traders of all nations. Moreover, the nations. By united action to they thought it necessasy to intro- it is quite clear that the dissatis- wards this end, they could change duce exchange restrictions, which
peoples.
A few nations control among them fied nations could not satisfy their the current of world history. Will only added to the confusion. a gigantic proportion of the world's needs even by large acquisitions of they do so? If they won't, they This group of little states offers territory and resources. If you will territory, because, in modern condi- must take their full share of re- a field for the ambitions of restless take a map of the world, and colour tions, all developed countries need sponsibility for the aftermath, which and aggressive powers. If Ger- the territories that belong to or are controlled by the British Empire, the United States, Russia, France, the Netherlands and Belgium, you
By Ramsay Muir
will find that only a small part of materials drawn
the earth's surface remains uncolour- try under the gi
even
many, for example, should attack Czechoslovakia, ag many think she intends to do, Hungary (which has been very unjustly used) might be tempted to attack Czechoslovakia in the rear; and then the fat would be in the fire.
worst
every coun- will certainly involve them, and need mar- if they can contrive not to be direct ed. Yet in these untinted areas kets for their goods in all parts of ly engaged in war. there are powerful and populous the world. What does matter is There is another reason why
If these six states could be brought countries which are quite unable, that all countries including the America and Britain ought to co-
into friendly relations--still more, from their own resources, to sup- dissatisfied countries themselves operate in bringing back prosperity if ultimately they could form some port their growing populations. They have been engaged in મૈં ruthless to the world. The amazing growth sort of federal union-the can only do so by drawing raw ma competition to destroy their neigh- of the world's wealth during the danger spot in Europe would cease terials from outside, working them bours trade by shutting out their nineteenth century was largely due to offer danger. How could this be up into finished products and selling goods..
to the outflow of capital from the done? The wiser heads în these them, on a gigantic scale, to the All are hurting themselves in the developed to the undeveloped coun: none of them really wants to be a states all recognise the danger, and rest of the world.
process; and this madness has been tries. The undeveloped countries But they find that they are large intensified by the political fears and paid for the capital they borrowed catspaw of German ambition. But, ly excluded by barriers which have jealousies of the nations, which by sending their goods to the lender because of their war-bred rancors, been raised against their trade, dread the possibility of being de- countries. Britain was by far the none of them can take the initia They cannot easily sell their goods pendent upon one another. They greatest lender or creditor country tive. The initiative must come in other countries; and therefore have not realised one of the most during the nineteenth century; Ger- from outside; and it must not come they cannot buy the goods they outstanding features of the modern many and France later played a from France, because then it would want from these countries, because world, which is that all the peoples part; America remained a borrow be regarded as a mere anti-German they can only get the money where- of the earth are now unalterably er or debtor country until the World with to buy them by selling their dependent one upon another, and War. own goods. The greatest of these that to try to resist this instead Since the war, however, America, sperate need of capital, to re-estab c'ssatisfied nations (but not by any of taking advantage of it is as Britain and France have been the is their monetary systems. Aus- meals the thly ones) are Germany, foolish as it would be to try to hold greatest creditor countries. They tria and Hungary got loans from Italy and Japan. Proud and war back the rising tide.
the League of Nations. But no con- have made it difficult for their deb- tors to meet their obligations by
ditions were attached to the loans. refusing to accept payment
If any new, loans were to be made, in
it would be of the first importance goods, or, at least, by putting stacles in the way.
that strict conditions should be at- The consequence]
the has been that the debtors have had tached, especially demanding
reduction of the impossible barriers to pay largely in gold, and their
to the free movement of trade that currencies have been disorganised.
have chiefly caused the ruin of these Because the obligations have been
countries Indeed, it is only on such very imperfectly met, the creditor countries have almost ceased lend conditions that any loans could use- ing and the development of the the interest being paid. “
fully be made, with any prospect of world's resources has been checked.
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move.
Now all these states are in de-
*
The United States
**
and Britain,
If the world is to regain prosper and they alone, could meet this need. ily and contentment, it is essential, If they did so, and imposed sound first, that the creditor countries conditions, they could not only make should cease to prevent their deb sure of a reasonable return on their tors from paying them in goods, advances; they could not only help and, secondly, that the stream of
of to restore prosperity to a distressed capital for development should
region of the world; they could en set flowing again. America and
courage these countries to work toge Britain, the great creditor coun- ther, to combine for their common tries, and the only countries which defence, and perhaps, ultimately, can dispose of great masses of to form some sort of a federal un- capital, can alone secure these ends ion among themselves, which would If they could take counsel together be the greatest bulwark of the and agree upon a common policy, peace of the world. they might save the world from This is only a single illustration distress, and win great prosperity of the ways in which the two richest for themselves.
and most powerful countries in the But they must be of their great foundations of a new and better must be aware of the world could, in co-operation, lay the use which they power. Some of the countries which peace settlement, and conjure away are most eager for capital, and the menace of war. They alone can would pay most heavily for it, would do these great things. Will they use it, if they got it, solely to build rise to the 1 height of this tremen- up their armed forces. They must dous responsibility and opportunity?
not get capital for such uses. “The power that comes from the making of loans must be used to bring settle- ment and peace, not disorder and
war.:
Here is an impressive example of the way in which the power of making loans might be used to make peace more secure. Before the World War the Austro-Hun- garian Empire was a great econo mic unit, and reasonably prosperous, because trade moyed freely among its parts. After the war, to satisfy
fonal ambition, this unit
THE
BRIGHTENS Ou
DAY
we MUNICH