EUROPE AND AMERICA.

Auckland Star, Volume LVII, Issue 247, 18 October 1926, Page 9

EUROPE AND AMERICA.

UNCLE SAM'S STRONG HOLD. ECONOMIC PRESSURE. STARS OF THE NEWER STATES. (By HARTLEY WITHERS. According to a recent telegram from the New York correspondent of tbe London ■■Times.'' Professor M. J. Bonn, a well-known Gorman economist, has been urging, in a Press interview, the United States to elaborate a plan of economic disarmament, which should give all nations, small as well as big, the opportunity to live safely, peacefully and reasonably free from the danger of war. This is certainly an ideal which reasonable people in all countries would be only too glad to see put into practice. But it may be doubted whether Dr. Bonn is delivering his sermon at the right address when he asks the American people to set about the business. Undoubtedly the United States, with the strong economic hold that it has now I acquired over Europe and other parts of the world, can exercise very great influence on the political actions of its innumerable debtors. At the same time any obvious exercise of economic power in the sphere of political life is a matter which has to be handled with great caution and delicacy, especially in times like these when there is a large number I of new States which are. naturally and rightly, very jealous of their newly- / acquired political status and powers. Suspicions of Europe. Professor Bonn, who is an extremely able and well-informed observer of what is happening in Europe, himself refers to the apprehensions there current concerning the intentions of America. He pointed out, in the course of his interview, that the United States at present endeavours to share its abundant natural wealth with poorer countries through exports which it fosters with huge commercial credits, and that this policy, though wholesome and essential for the world's recovery, is nevertheless arousing the deepest suspicions of Europe. Euro peans, he says, "have never seen the rise of power in the world without being conscious that it is sure to be misused, and the}- regard the chief objects of power, not as the safety and security of its possessor, but to be used as a weapon to enslave others." To anyone who knows anything about the mind and outlook of the average American business man this fear, cherished in Europe, of any attempt by the United States to enslave other countries through the use of economic power, seems sufficiently absurd. Nevertheless Dr. Bonn is a man who docs not use words lightly, and a suspicion is none the less dangerous because it is without foundation. The existence of the war debts has certainly caused a feeling in Europe, towards both America and England, which will call for the exercise of all the tact and goodwill that these countries can muster if it is not to develop into considerable political bitterness. For example, it was lately suggested by a prominent member of the Belgian Chamber that some sort of League of the Latin nations of Europe should be formed to combat the menace of "AngloSaxon financial domination." Commerce and Politics. To those who realise the weakness of the position of the international creditor these apprehensions may seem to be greatly exaggerated, but it is certainly much to be regretted that the question of war debts has not been handled in a more generous spirit, because the existence of these apprehensions checks the process of the flow of private capital from one country to another. Debts between Governments are evidently in quite a different category from the debts which Governments raise by the public offer of loans on the public of the world from private citizens in foreign countries. In the latter case, the fear of any possible political domination is obviously much more remote. It may be true that there have been examples in the past, as, for example, in Egypt, when the claims of bond-holders have been associated with political action '. which has tended towards domination; i but these things can only happen in the ; case of weak and backward countries, ' and would hardly be tolerated by inter- ! national public opinion at this time of p day. What is really wanted, in order to 1 promote good business and goodwill all over the world, is to clear commercial . transactions as far as possible from political influence. As long as merchants • and producers of different countries deal with one another, and as long as the private financiers and investors of one country provide capital for the public authorities and private enterprise in foreign lands, then the whole matter is on a business basis, the lender and the borrower get the best terms that they can. and both work to their own advantage, incidentally promoting and improving the productive power of the world. As soon as Governments begin interfering in those matters there is the risk of diplomatic complications and political intrigue, and what ought to be a clear ! matter of business becomes involved in : an unsavoury atmosphere. Some months .. ago Mr. Hoover, that distinguished 1 American administrator. protested f against the interference of Governments 5 with tho price and supply of raw mate- ; rials. It' was easy to critics on the 1 European side to point out that the ' United States had boon a rather distin--5 c-uisherl sinner on the lines which Mr. Hoover was reprobating. Nevertheless " iiis protest was' essentially a sound one ' and'if the relation? between Europe and America are to bp kept on reasonable ' and comfortable lines, it is very essential ' that the Governments should have as : little as possible to do with business, and that business should be left to be ; conducted by private enterprise, work--1 ing for it? own benefit.