"At the close of 1929 the world owed us around 25 billions, only ten billions of which are called war debts," as Raymond Gram Swing pointed out in Ken, May 19, 1938, commiserating with Uncle Sam, "the working fool". "We had a potential 20 billions of capital ready to work for us abroad . . . When confronted with this unique privilege this country passed the Smoot-Hawley tariff, which made it difficult for foreigners to export to us their labor and goods . . . In 1930, at the height of our creditor position, we were being paid in dividends from abroad $616,000,000 more than we paid to foreigners. In 1936 we received only a net of $330,000,000. . . . To meet our deficit we went into debt to foreigners that year about $200,000,000." With all other nations reduced to penury, we held the leadership of the world, and with our vast credit resources we might have remade the world on democratic lines, to our heart's desire. Unfortunately we had no heart's desire. We lacked political sense, financial intelligence. So we threw away our opportunity, and the European political leaders, looking upon us as an easy mark, continued to bleed poor old Uncle Sam.
"It will be a shock to many to discover", Graham and Whittlesey in an article in Foreign Affairs, April 19, 1939, had made it clear, that "instead of being a lender nation . . . as had been the situation . . . we have in recent years, been a net borrower of billions . . . incurred in the purchase of gold on which we laid out, net, $1,134,000,000 in 1934; $1,739,000,000 in 1935; $1,117,000,000 in 1936; $1,586,000,000 in 1937; and $1,974,000,000 in 1938." The cost continues to go on and we dare not stop it.
"'Starving Germany out' is a phrase frowned on by London officialdom and always deleted by the censor--in deference to the sensibilities of humanitarian neutrals. But that is the Ministry's job."(1) ( Life, Jan. 15, 1940, "Contraband Control")
"We look forward to the day when we shall have strangled Germany's economic life so that she can no longer sustain her war effort", Minister of Economic Warfare Ronald H. Cross informed the Commons, Jan. 17, asserting that already Germany was undergoing economic strain as