WORLD AFFAIRS.

Auckland Star, Volume LXII, Issue 243, 15 October 1931, Page 6

WORLD AFFAIRS.

A WEEKLY REVIEWs

(By BYSTANDER.)

Mr. Ramsay Mac Donald and Mr. Baldwin have issued tlieir joint appeals to the country, and it can hardly be denied that they have made out a good case for "a national mandate" to be granted by the electors to the new Government on extremely broad and general lines. In fact, Mr. Mac Donald's manifesto is so vague and comprehensive that the electors may well complain that they are being asked to sign a blank cheque for an unlimited amount' and for purposes as ye wholly undefined. On the other hand, it is har to understand liow Mr. Baldwin's appeal can e regarded as complying with the of "non-partisanship" laid down by the Prime Minister. For Mr. Baldwin has declared "straight out" for a tariff, as the only effective way of rectifying Britain's adverse balance of trade, and the feeling of Liberals and Labourites is generally adverse to a tariff in any shape or form. I may add that the denunciation of tariffs issued from Sir Herbert Samuel's headquarters "we are convinced that protective tariffs are futile and stupid"—is not exactly calculated to promote harmony in the Nationalist ranks. On the other hand, the obstinate determination of the "dyed-in-the-wool" Free Traders to stick to the unadulterated Cobdenite tradition is likely to prove a serious source of weakness to the Opposition. Mr. Lloyd George says that he will for Free Trade, which has made Britain the wealthiest country, in Europe." There is much virture in that "has." But, if one asks, ' How long ago?" one gets 110 more consolation from Mr. Lloyd °George than from Mr. Edgar Wallace, who has declared, with a characteristically rhetorical flourish, that "food trading" is a "crime" which he Avill not abet or countenance. This curious combination of a "Welsh wizard" and an industrious compiler of "shilling shockers" may not win the election, but it may go some way toward throwing out the calculations of Mr. Baldwin and Mr. Mac Donald.

Germany's Crisis. The German Republic is once more struggling in the throes of a political crisis. Last week Dr. Curtius, the German Foreign Minister, resigned, and the Chancellor, Dr. Bruening, deserted by a considerable section of the Social Democrats, tried to reconstruct his Cabinet. As he failed in this attempt, the Government resigned and Dr. Bruening proceeded to form a new Ministry. In the interval President Hindenburg, in strict accordance with his prerogative, issued a series of ''emergency decrees," which in effect established an absolute dictatorship without regard for the constitutional and political rights of the nation, and this step naturally accentuated the popular discontent, which was being worked up to a high pitch of intensity by the Communists at one end of the scale and the Nationalists at the other. It is evident from the aggressive and confident tone adopted by the Nazi leader, Hitler, and his chief supporter, the millionaire journalist Hugenberg, that they believe that their opportunity has come, and it is an interesting proof of the influence cxerciscd by Hitler the importance of his activities that the President has invited him to a private interview and urged him not to allow his followers to make the situation worse. So far as the Nazis are concerned, they are still concentrating chiefly on their protests against the Versailles Treaty. But the crisis is.- not only political, but financial, and a public attack made by Dr. Schacht, the irreconcilable foe of reparation payments, upon the Eeichbank, has gone far toward destroying what is left of the national credit. Dr. Bruening has reconstructed his Cabinet, the new Minister of Finance has denounced Dr. Schacht for his reckless and unpatriotic charges against the Beichsbank, and the situation has improved with the news that the Bank of International Settlements will extend a further three months credit to Germany. But the position is still extremely critical, and the reissue of "emergency decrees" is certainly not tending to reconcile the German people to Republican methods of government.

The Trade Revival. There cannot be much doubt that the sudden "boom" in Britain's staple trades is due chiefly to the abolition of the gold standard and the consequent depreciation of the pound sterling, which enables British producers to compete on better terms with their foreign riyals. In the nature of things, such a revival of activity could hardly be permanent. But it seems to be quite real for the time being, and it lias given greait encouragement to British industrialists and commercial men. A fortnight ago, Dr. Barker, a distinguished British expert on textile research, told the Association for the Advancement of Science that the future for wool is much brighter than for many years past. A week later, the secretary of a new textile exchange just opened in London stated that the woollen trade is "or. the threshold of the biggest boom in its recent history." On the same day, it was annoxinced that the Yorkshire textile manufacturers, since the lapse of the gold standard, have secured orders totalling many millions of pounds, which will "ensure work for thousands of operatives well into 1932." Nor is this activity confined to the woollen trade. Lancashire, like Yorkshire, is enjoying the unusual experience of receiving huge orders, reojiening closed mills and re-employing thousands of operatives. This happy state of things may not last long, but it provides a most attractive contrast to the gloom and depression that have overhung Britain's textile industries so long. And even if it is only temporary, it may give the woollen and cotton trades enough impetus and energy to raise themselves from the "slough of despond" in which they have been submerged so long.

Trade with Russia. It was reported from Berlin recently that Soviet Russia has placed £40,000,000 worth of orders in Germany since January, and that the total will probably be increased to £45,000,000 by the close of the year. But there is one ominous qualification introduced into the report: "All business is done on long term credits." What is the'good of dealing in "long term credits" with a government which systematically refuses to keep its word or meet its obligations? Just before Mr. Snowden's retirement. he pointed out in the House of Commons that Russia owes Britain £1,000,000,000, and, he added satirically, "that the Labour members interested in Russia would render good service to their country if they could induce their. Bolshevik friends to pay a year's interest on the debt." But unfortunately that is not Soviet Russia's way. As regards the general question of" Russian trade, I am not yet able to imagine how the other nations, having formal notice from the Soviet Republic that its rulers are bent on destroying Western Capitalism and Western trade, can persuade, themselves that they are benefiting any country but Russia bv purchasing her products. Of course, I know thac Russia has just submitted to the . League of Nations a proposal for pact of economic non-aggression " and apparently the Assembly expects its members to take this seriously. To my. mind it is precisely on the same footing as Russia's appeals for disarmament and peace, while she is straining her resources to the extreme limit in the endeavour to convert the Class War into World War on political and economic lines at the same time