The Guardian (And Evening Star, with which is .incorporated the West Coast Times,) MONDAY,. JULY, 1940. AMERICAN COMMENT

Hokitika Guardian, 15 July 1940, Page 4

The Guardian (And Evening Star, with which is .incorporated the West Coast Times,) MONDAY,. JULY, 1940. AMERICAN COMMENT

In the June issue of a New York financial journal it is remarked that businessmen in America are. aware that the war influence upon business was by nature ’unpredictable, but the overrunning of the Low Countries and Northern France, was the one thing which' public opinion was least prepared, for. The war in the first few months was not the wholly dominating element'in American business. .In the early days it produced a great upsurge of buying based on the belief that there would be an era of Allied orders, Neutral trade expansion, and commodity price inflation. But prices were kept within bounds. At the same time it was felt, that the war would have no quick result but a prolonged stupendous struggle, and big Allied buying. The strength of the Magi not Line swayed business sentiment in America, exactly it is remarked as it swayed French geneialship. Then came the sweep of the German columns /into France and along the English Channel. It was a fearful stroke, and for the first time it was thought that Germany might possibly win the war. The paper adds: “This is far from a foregone conclusion. It will remain so, even if Great Britain itself should he attacked. If the Allies cun withI stand the battle, the economic pressure on Germany, which is the basis of the Allied strategy, will become all the greater for the vast expenditure of material in attack.” The effect of a German victory in American trade is studied, and it is realised that theworld would be profoundly altered to “our disadvantage.” On the other hand a turn in the military developments in favour of the Allies, would hearten investors and strengthen Confidem/e generally. After discussing the special need of the Allies in all kinds of war supplies, it proceeds to point out that the United States has the capacity ro produce both food and arms without stint. It can afford the cost if along with the effort goes a genuine devotion to the doctrine of work and save. Comment- refers to a report of M. Daladier when Premier of France who spoke strongly on slackness in the country with production and America notes this now, and says the United States must avoid the pit-falls referred to in the reduced working time and the alleged increased efficiency of machinery. It may be assumed that in this complaint and its cause, that the first weakness of France developed. Yet when the war came France immediately felt the truth of M. Daladier’s strictures :on thp situation as he saw it before war broke out. So America is setting about its own defence betimes, and if the enending of. billions wIM achieve the desired goal, the money is there to do it. But the financial journal concludes with these words: “The United States abhors totalitar-

ian ideas and methods. The challenge is whether an association of free people

can provide and accept leadership, subordinate one aim to another as required, endure priorities and sacrifices, and unite all groups in a common effort. With understanding, co-opera-tion and devotion to the national interest, this country can demonstrate to the world that a democracy can solve the problem, of defence as efficiently as a totalitarian state, and combine with it a peaceful progress or which no totalitarian state is capable—and without otlu-r controls than those freely concurred in, and imposed through voluntary co-operation.” It appears evident that the Presidential Election with its political imparts, is swaying opinion at present. There is an undercurrent of strong support for the war effort, and with the political issues of the coming election clearer, the United States may have a more pronounced decision to make on its war effort, now by no means inconsiderable.