The Economic Side

A scant four and a half hours before the resounding Big Three communique was released in Washington, the White House made public another document, as important in its own way as the message from Yalta.

Franklin Roosevelt, pressing for quick action on the economic side of world affairs, called on Congress immediately to ratify the Bretton Woods monetary agreement negotiated by 44 of the United Nations last summer (TIME, July 10 et seq.). He followed this with a warning that Congress should then get ready for action on seven other treaties or agreements in the international economic sphere.

Franklin Roosevelt considers the Bretton Woods agreement the "cornerstone" of world economic cooperation--just as he regards Dumbarton Oaks as the "cornerstone" of world political cooperation. Plainly, he wants ratification of both.

"It is time," said he, "for the United States to take the lead in establishing the principle of economic cooperation as a foundation for expanded world trade."

That the U.S. would take the lead, if Bretton Woods is ratified, is plainly indicated by the fact that the U.S. would be the heaviest contributor to both the International Bank for Reconstruction and Development and the International Monetary Fund contemplated by the Bretton Woods agreement. Purpose of the Bank is to guarantee or make loans for reconstruction to devastated countries. Purpose of the Fund: to control monetary exchange fluctuations.

The Major Problem. Apparently anticipating criticism of Bretton Woods in Congress, Franklin Roosevelt characterized the agreement as "the product of the best minds that 44 nations could muster." He added: "It would be a tragedy if differences of opinion on minor details should lead us to sacrifice the basic agreement achieved on the major problems."

Actually, Bretton Woods was not up for Congressional consideration when the President made his appeal. Bills embodying the agreement were to be introduced in the House and Senate this week. Few members of Congress have taken either one side or the other on Bretton Woods.

The other economic measures which the President announced he would shortly submit to Congress: | P: An agreement, drawn at Hot Springs, Va. 20 months ago, setting up a United Nations Commission on Food and Agriculture.

P: Strengthening and "broadening" of reciprocal trade agreements. P:Reduction of trade barriers. P:Control of cartels. P: Boosting the capitalization of the Export-Import Bank, which handles loans of U.S. money. P:An international oil agreement. P:International agreements on civil aviation, shipping and communication.

This would be a back-breaking schedule for Congress to tackle. But the program, Franklin Roosevelt said confidently, "is our hope for a secure and fruitful world. We have a chance to use our influence in favor of a more united and cooperating world."

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