WILL IT COME?

Evening Post, Volume CX, Issue 83, 4 October 1930, Page 9

WILL IT COME?

EMPIRE FREE TRADE

LIBERALS RECANT

"While JI. Bi'iand .strives against itishear.tciiing odds to lay the foundations of a European federation which would enable the Continent to bo more nearly an economic entity Great Britain turns •with, intensified interest to the possibility of developing a new kind of economic unity within her Empire, writes Harold Cailender, iv the "New York Times." . , , If the Imperial unity which lately has captivated the imagination of many Englishmen could be attained a-tariff wall would be built around the whole British Empire, but -within, the group of nations encompassed by its trade would be unencumbered by any such barriers. It has seemed in the last few weeks as though Britain were so impressed by tho practicability of this project as to be upon the point of abandoning completely her traditional policy of free trade and joining—roluctantly and in self-defence —in the high tariff race iv which most of tho other nations of the world have been engaged. - ' * INTENSIFIED. Even some Liberals have weakened in their historic faith. For the first time speakers at a Liberal gathering have expressed doubts about free trade. This was at tho Liberal Summer School at Oxford, the waiverers being Messrs. E. D. Simon and C. G. Rcnold, both from Manchester, which is the homo of the free-trade doctrine. The resounding "crusade" for what Lord Beaverbrook, its most active sponsor, chooses to call "Empire free t ra de' 3 —which really means Empire protection—has gained ground steadily during the last year. To the druniTthuniping campaign of Lord Baeverbrook have been added the carefully reasoned arguments of Lord Melohett, Sir Eobert Home, and others. In' spite of the justifiable misgivings of their leader, Stanley Baldwin, asking the country to accept food taxes, the Conservatives have raised the question in the House of Commons. ~ A group of' bankers—a class hitherto opposed to tariffs—have signed a manifesto to the effect that Great Britain must keep her markets open to Empire products "while being prepared to impose duties on all imports from all other countries.'' Powerful newspapers have joined in the demand for a new tariff policy. • It is early.-to assert that the next General Election will be fought out _on the issue of an Imperial tariff—which would enable Labour to stand.as champion of cheap food. But Lord Beaverbrook's agitation has stirred things up and brought support for his cause from unexpected quarters, and tho movement for protection is still making headway. . ■ . ~ FOREIGN TRADE. It is a British movement rather than a colonial one, and the reason for_ its increasing appeal to the United Kingdom is very simple. To understand it one has only to glance at the figures for British foreign trade for tho first half of this year. They show that imports have fallen 10.5 per.cent, and exports 16.2 per cent, below the totals for the corresponding period of last year, and that Germany's exports forged ahead of Britain's. Since she must import most of the food and raw materials she consumes, paying for them with exports, foreign trade is more vital to Britain than to my other groat nation. . Her foreign trade- has languished for nearly a decade', however, and shows no signs of improving. Britain is desperately in . need /of markets for her manufactures. But wherever she turns in quest of markets —whether to _for;ign .lands or to the British Dominions—she faces an ominous barricade of tariffs which have tended iii recent years- to rise rather than to descend. Tot she herself imposes no duties at all upon most of the imports coming from these highly protected countries. In a world bristling with tariffs, ■ free trade Britain is declared ,to have scarcely a fair chance. Free trade, the' argument runs, was a sound policy when Great Britain. -was the leading manufacturing nation and needed raw materials1 from all the world, but to-day nearly every nation —even small ones that never thought of doing so before the war—seeks to be its own manufacturer.' IMPACT OP AMERICA. Most important of all is the rivalry of the United States, now the greatest of manufacturing nations. It is felt not only in foreign markets but within the British Empire. But how can Great Britain increase her ex-ports by putting, a. tariff upon imports? The answer—as the protectionists see it—is that a tariff on foreign imports into Groat Britain would enlarge the market for Dominion and colonial produce in Great Britain; and in return for this favour tho Dominions would lower, and .eventually removo entirely, their duties upon British goods. Tho programme so vehemently urged upon the Conservative Party has not been very precisely defined by any of its protagonists, but basically it looks to free trade within the Empire and protection against the outside world. . Britain would buy Canadian and Australian wheat instead of Amorienn and Argentinian wheat, and Canada and Australia, it is assumed, would buy steel from Sheffield instead of from Pittsburgh. GREAT VOLUME. The Empire contains about 437,000,----000 inhabitants, and its trade comprises about 29 per cent, of all , the trade of the world. It produces 45 per cent, of the world's wool, 36 per cent, of the sheep, 68 per cent, of the gold, 23 per cent, of the wheat, 39 per cent, of the cattle, 52 per cent, ot" the rice, nearly half tho cocoa, 90 per cent, of tho jute, 59 per ■ cent.1 of the rubber, 10 per ceut. of the silver, 82 per cent, of the diamonds, 17 per cent, of the eo:il, nenvjy half the tin,.Bß piv or lit. nf tin: nickel, 90 per cent, of !,i;. .-;] • is. !> 1 :;■!.• cent, of the iron I ■..'.-. , j.cr i-i'iit. of the copepr ore, but

only 1.5 per cent, of the petroleum. Its shipping is a third of the world's total. Yci much of its area is still in tho undeveloped . state in which America was a century ago. Vast as are the resources of this great league of British nations, and various as are its raw materials, it is not self-sufficing. It is a group of economic units whose interests by no moans coincide, and among which there is.some active competition, as exemplified in the Dominion tariff systems. Its economic interests are international as well as inter-Imperial. SEEK P&OTECTION. The United Kingdom does a good deal more trading—and tho overseas JSmpii-o slightly more—with countries outside the Empiro than countries within tho Umpire. And in the last two years—l 927 to 1929—British exports to foreign countries showed an increase of about £22,000,000, while British exports to the Empire dropped £2,000,000. According to iigures ai published by Lord Mclehett, of the aggregate trade of the British Empire—which ampunted to about £3,800,000,000 in. 1927—73.7 per cent, represented trade with foreign countries and only 20.3 per cent, was trp.de within the Empire. Tho United Kingdom can no more consume all tho raw materials the Empire has to sell than the Empire can tako the United Kingdom's total output of manufactured articles. Nor can the United Kingdom get from the Empire all the raw materials it needs, notably in the cases of petroleum and cotton. Both must depend upon foreign markets and foreign sources of supply. DOMINIONS' STAND. Typical of tho dominion attitude were recent statements by James Edward Teuton, Australian Minister of Customs, and Sir-.Tam.es Parr, when High Commissioner for New Zealand in England.. "If British manufacturers want Australian trade," said Mr. ' Eenton, | "let them establish themselves here and enjoy the protection of the Commonwealth." "There is a good deal iOf talk about free trade within the Empire," said Sir James. "I approve the principle entirel)', but there are i sonic difficulties. We have our own! manufactures in New Zealand, making i some of the goods you make- (in Great i Britain), but which you make cheaper. Things will have to be adjusted gradually so that the people of New Zealand do not suffer." "When Lord Beaverbrook first ■ proposed his protectionist plan, Lord Cushendun, a Conservative, said in the House of Lords that it was not practicable because it would not appeal to the dominions* \ Probably the greatest obstacle of all, on the British sid^ is the public's Jong-standing prejudice against tariffs in general and especially tariffs Which would increase the price of food. Mr. Baldwin has been chary of committing himself to food taxes. He displeased the protection enthusiasts by promising that if returned to power he would not imposo such taxes until he had referred the question to the country in a referendum. Labour and the Liberals, of course, would oppose stubbornly any tariff on food—indeed, any protective tariff: whatever. . '