Our Trade Future Under

War Conditions What is United States Going to Do?

FROM an old planter in Samoa; “I think a closer economic union of Britain and the United States would be the salvation of the South Seas.”

A view with which the “P.1.M.” agrees entirely.

That economic union must come soon, in the very nature of things. Take your map, and cast vour eve over the world.

Note the countries that still are free to trade with Britain and U.S.A. All Europe, except the two corner-pieces (Portugal and Turkey) and Russia, now is under the Nazi heel. Half of Africa is being dis turbed by Italy, and half of Asia by Japan, and is unable to trade with us.

Gradually, inevitably, the world is be ing brought into two groups—the con quered peoples, held by the predatory nations (Germany, Italy and Japan); and the free peoples, led by Britain and the United States.

Already, the conquered peoples are being battered into an economic union, dominated by the unbacked German mark—the “New Order”, they call it.

There can be only one answer to that: some form of economic union, and much freer trade, between the free nations.

That will be seen, first, in freer trade between United States and the British Empire generally.

The struggle between Democracy and Nazidom may go on for so long that, after a year or two, we shall accept war conditions as normal conditions—just as we did in 1917-18. Trade, after wide re adjustments, will settle down in the

new channels indicated, on one side or the other of a line fixed by war.

So that, presently, the world will be divided between two rival economic systems —each system backing a mighty fighting machine, each machine moving towards the inevitable, final, deciding struggle for world supremacy.

In that contest between rival economic systems, the Democracies will have one enormous advantage: between them, they hold at least two-thirds of the world’s recorded gold. America, in particular, has an incredible amount of gold—which, already, she is using against the Slave 810c —witness recent loans to China and South American republics.

Gold has been, virtually since the dawn of this civilisation, man’s unshake able measurement of value: and, however the Nazis may rave, and try to force their standards upon the world, the people everywhere will, if they can, accept Anglo-American gold-backed tokens in trade, rather than a form of paper-money that can have permanent value only if the Democracies are crushed.

So far, trade generally has held up its head in an amazing manner, so far as the free world is concerned—this despite the fact that some of our best markets disappeared when Europe, North Africa and East Asia were enslaved. This steadiness of trade and finance, in an environment of torture, is due almost en tirely to the strength of London and the staunchness and capacity for self sacrifice of the British people.

Life is going on much as usual to-day, in these Outer Dominions, in the Pacific territories, in North America, because those magnificent people in England and Scotland can “take it”. But they can not endure indefinitely. The war will be lost, for us, if the people of the Empire

and U.S.A., do not make the best possible use of the breathing space given us by the deliberate sacrifice of our kinsfolk in Britain.

Yes, trade in the Pacific may even boom, when the international barriers go down—as soon they will—and Ameri can gold comes into use. But we shall be fools indeed if we regard those happier conditions as anything more than a chance to equip ourselves better for the

crucial struggle ahead.