Running the War

On President Roosevelt's desk this week were at least five different drafts of an executive order setting up a U.S. version of Britain's Ministry of Economic Warfare. In Washington, where the phrase is already a cliche, three names were mentioned for the Minister's job: Dean Acheson of the State Department, Deputy Loan Administrator Will Clayton, Brigadier General Russell L. Maxwell, now Administrator of Export Control. Biggest question mark was not whether such an order would be signed, but whether the man who runs it will be given any real power. Even if he is not, the job could affect businessmen throughout the U.S.

Two examples of the need for such a job were particularly evident last week: the freezing of Axis assets (see below) and various import difficulties such as the coffee situation (see p. 76).

Argument for such a job is that the U.S. is too deeply involved in war to retain the world's last vestiges of free-market principles. On the domestic front, the Government's division of authority among various departments is annoying to businessmen but not fatal. But in dealing with totalitarian foreign powers, the U.S. needs to confront the world as one power, with one policy and one personnel.

At present, export policy is settled by a maze of departments, including State, Treasury, Commerce, as well as several independent agencies. The Maritime Commission has jurisdiction over shipping, Federal Loan Agency over loans to foreign governments, the Agriculture Department over many hemispheric food matters, Treasury Department (and the Federal Reserve Board) over foreign funds. Justice Department over aliens. Army and Navy over foreign bases, etc. Each of these departments has a different policy, and there is no effective coordinator except the President. Better-organized foreign governments find many ways to take advantage of this unintegration.

First problems the new agency will face: 1) Define the U.S. economic front and, if it includes the Hemisphere, implementing a Hemisphere policy. 2) Take measures to prevent the Hemisphere's strategic materials from reaching Axis hands, by preclusive buying. 3) Offset Axis economic operations in Latin America. 4) Negotiate for still more air and naval bases. 5) Control all foreign trade and financial matters.

This file is automatically generated by a robot program, so reader's discretion is required.