HARMONY ESSENTIAL TO PROGRESS

Dominion, Volume 10, Issue 2955, 15 December 1916, Page 12

HARMONY ESSENTIAL TO PROGRESS

The movement amongst leaders' of the nation to draw more closely together in trading relations throughout tho . British Empire grows apace. , ..The basis is being discussed and various methods are being advocated by which the desired end may be consum- - . mated. ' The question is one which concerns • (New Zealand business men generally. ,and particularly all who are engaged either as employers or employed in'the' • varied and developing industries of ; tbis Dominion. llecently the conference of representatives of Chambers of- Commerce throughout tho country ' assembled in*'Wellingt6n,.and discussed intelligently and well the many trading ■ . and industrial problems that beset the path of our merchants and masters of industry. Properly, they refrained 'from pressing upon'the Government any specific or detailed economic policy; but it was clearly emphasised ' that the 'business mind, of New Zealand is entirely opposed to reviving commercial relations with the enemy— if over they are to be revived at all — upon pre-war Traders and business men are all agreed that our ecoiiomio policy as a nation, and ns a unit among that, comity of nations. forming the British Empire, . should be so moulded, as would'produce closer Imperial and commercial rela- '-. tionships. The business unification of , ■ -the Empire is being urged on all sides, • for it -is believed, and we realise rightly so, that an Imperial-economic alliance, embracing Allies and neutrals in . some measure within its operations would _do much to shake the already _ , tottering credit of the enemy, while „ strengthening andsolidifying our own, ■ Already the Paris Conference,- to which preference is made in other parts of this issue, has given to all independent ' and self-governing portions of the Em-pn-e a lead, our own-Chamber's of Commerce lave made suggestions by : , unanimous resolutions, and it remains® ; with the. National Government to take occasion by the -hand and help to real--1 ' ise- the aspirations of our leaders in commerce and industry. , There is another point which should not bo lost sig'ht of. \The conviction is_ deepening that the British Empire, "with its vasfct. undeveloped 'resources,. . should' -become more solf-supporting and independent. This applies with force to the condition of Great Britain herself, but it is not without sig- ' Rificaiico to the overseas dominions, and is of considerable importance to «T»-pwn.'^TOtry. ; '.-^.The / strength -and' safety of the whole Empire lies in its . ability to produce what it requires from its own soil and factories. Tho ! war has taught not' only our business men, but every housewife, that wa ought , not to dopend uppn foreign sources for many necessary things . which could have been produced very . well by ourselves; and if not by ourselves by our kith and kin within the Kings domains. WANTED AN ECONOMIC POLICY. i That these -matters are discussed is good, that decisions should be. coma to is .better, but practical action is essential. They cannot wait the .termination of the war for solution and settlement. We have Ceea repeatedly told tliat the enemy has accumulate •; ed' vast stores of manufactures, and is ready to throw them upon Allied territory. immediately peace is declared.' This is alike a threat and a menace to our manufacturers, and all their enterprises. ;It this were permitted; many of our industries would be killed, £nd while wo. would have a ■ cessation, of military warfare, a.commercial war with disastrous results would immedi.' ately ensue. Enemy goods, however, . may be excluded from the British Empire and all our Allies' terri- ' '' what is to hinder their , hndmg_ their way into, say, Now Zealand, by way of neutral countries? ihis is one of the. matters- calling for attention. Anyone can see who has given, this subject but a superficial con- - sideration that tb allow pre-war conditions of international trade t<? be restored would be but inviting tho enemy to. reestablish himself- largely at our expense, and " again prepare for a war in which our. destruction would be the ~ objective. Surely-no'one will assert . that an economic policy -can wait till - after the war for consideration. To take up such a stand is but to copy tlie example of those in England' who said war would never come, arid asked why they should prepare for it. . We know that peace .is ooming, and every wise business man. will now determine that lis own and his nation's trado policy • shall be decided, and means taken to f. ve . lb 7 . purposeful effect, so that by his indmdual effort the nation's wellbeing may be raised and the Empire's efficiency advanced,. NEW ZEALAND'S POSITION. ;As is the case in all His Majesty's self-governing possession, the domestic . policy of this country is entirely in the ,„ people's hands. _ Constitutionally thev .; choose their legislators, and the legis•'lators mako the laws, and in very - rare instanced is the will of the people as expressed through their representatives denied the ltoyal approval; It v onl £ sucll cases, if at all, wlien New Zealand legislation may-bo considered to conflict witli Imperial in- ■ terests and international relations that . the veto of the King has been interposed. But the economic and domestic policy of New Zealand may be entirely the opposite of that of Great Britain or any other part of the Em- ,. pire, and no interference is offered by ; the British Government.. Thus, it is • that the self-governance of oversea do- ■ minions has "been esfablisM, and'their attachment to the Sovereign continues •' unimpaired. While. Great Britain .has - pursued a policy of- free trade for ; nearly a. century, New Zealand instituted a policy of protection, both for the purpose of industrial development ■ and the procuring of revenue for tho State.

All countries, even England herself, jnsthe period ofclieK-iiiduSrial-infancy, jy-'as devoted to a protectionist policy, and it was only when her industrial supremacy was established that she threw off her "protectionist armour and-fought nnaided for the markets of the world. In late pre-war years it was considered

by many enlightened/statesmen that] Great Britain was handicapped by her: free trade policy; and although the policy of England was not interfered -irith, there fvere a great many business' men and public leaders who considered that a measure of protection would in some cases at least have enabled Great Britain to successfully for better trading conditions with other rival industrial countries. Be that as it may, England has left her colonies and dominions free to choose such dome'stio policies. as in the wisdom of their inhabitants best suits their individual purpose, and development. ' EDUCATIONAL VALUE' OF PROTECTION. In this country it was decreed that a measure of protection by Customs duties upon the 1 articles produced by new industries shonld be . imposed for revenue and educational purposes. The many commodities'that could not profitably be produced in New 'Zealand were taxed as import's to replenish the .exchequer;. and tor tile benefit of enabling our people • to be taught handicrafts'and manufactures, a measure of protection was necessary. It is to be noted, too, that the standard of living among our industrial, people is far, higher than it is among similar classes in. other countries, so that protection meant some uniformity and standardisation of wages for workers. The danger, of course, in highly protectionist countries is that vast monopolies may be created under the aegis of such a policy; but in a country where the rural population is about equal to that of the towns, prices of agricultural products being. regulated by tlio market values in the world's markets, there exists a 'strong counterbalancing influence against a high protectionist policy under which monopolies might be created disadvantageous to the common. weal. Although most of our secondary industries have prospered they have not grown prodigiously, nor have .they reached such' a state of development as to be, able to provide'our people with all their requirements. While, therefore, that condition- lasts we are not an independent manufacturing. nation. We may be independent as far as foodstuffs are concerned; although even here in-recent'years importations of wheat and flour have been made from abroad; and that notwithstanding .the'fact that both of these commodities are slightly, protected. In pre-war times the farmer found it more profitable to produce meat and butter than'.wheat; ■ so that , the, area, covered by this cereal has been gradually contracted. OUR EXPANDING IMPORTS. Before dealing with several of our secondary industries, attention ought to be directed to the growth of our overseas trade. The- overseas trade of this Dominion reached last year (1015) the extraordinary total of fifty-three and a half millions sterling, which is practically twenty millions more than it was nine years previously. Allowing a matter of' five millions as making the difference between 1914 and a, full war year,- an average increase of nearly two and a half millions per annum-in the trade of.'the Dominion is a record of which we ought to be proud.,' And when it is remembered that as recently as 1910 our exports exceeded our imports in point of value-by nearly five and a half millions, which was larger than' the excess of exports over imports in 1914, no one can fail but be impressed fvith the fertility'=of our country and industry of our people. For some'years prior to and including 1915, there was but slight variation in the value of our imports; Indeed, for 1915 the imports were of less value than those of 1913._ Still, if the goods imported are i any indication of the . spending power [.of the people, then the cost of imported articles in 1913—we take that year as being entirely,free from war influences —was over seven millions sterling greater than seven years previously. 1 1 - THE LESSON OF THESE HCURES. What the average business man and manufacturer will iear'n , i'roni these figures is that our industries are not yet equal by a long.: way to tho table of supplying all the requirements of the people. It is doubtful if ever New Zealand will be a self-contained and independent country in a commercial sense, and it' is more doubtful "if such a condition is, from a business viewpoint, desirable. Still, there is manifestly plenty of room for the growth and expansion of our varied industries, and that so much of our inonoy reaches foreign .countries, and especially, that of our arch-enemy, demonstrates, that there is ample trade to be captured by manufacturers and men of enterprise at their very doors, so to speak, ol' existing industrial establishments. How to capture more of our own business for our own people is a problem that must command the attention of our industrial masters. LEARN FROM THE ENEMY.' While we all condemn the Germans, it is possible to learn something from them in the matter of national economy and industrial enterprise. Just a few weeks ago in tho Reichstag Committee for Trade and Industry, Dr. Helfferich opened a discussion on the economic transition from war to' peace .with a speech which pointed out' plainly the enormous damage done by the war in the shape of millions of pounds' worth of damage done in Alsace and East Prussia, the loss of capital to shipping, the influence of tho requisitioning of metals, and tlio adaptation of capital to war rather than to the welfare of the national economy. He said that the return to peace conditions would be guided by the- State, and the Federal Council had appointed an Imperial Commission to deal with this transition period. This Commission would deal with the reintroduction of men from tho army into ordinary peace conditions and work, the supplying of this work, and the withdrawal of female and youthful labour, besides tho restoration of the laws protecting workmen, which have for tho time being partly suspended; then the reorganisation and redistribution of capital. In all, there were three main problems — labour, questions, credit questions, and tho supply of raw material. At present

tho Commission.' would deal with the supply of raw materials, transport, and the standardisation of these two. An Advisory: Counfcil was to be set up, with several subdivisions, to help in these-matters. ■ Furthermore, it. is understood that the enemy has made preparations for throwing on British and Allied markets, the moment peace is declared, his accumulated products, and the effect, of course, would be to swamp the present and prospective industries' it is. hoped to develop. _ If that is allowed, an opportunity is lost. If once the Germans are permitted to do that the trade they would gain, could never be recaptured. Throughout His Majesty's Dominions traders, manufacturers and merchants are putting upon themselves the task of providing for such a contingency. • ' TRADE WITH VARIOUS COUNTRIES. Our import traae with Germany sprang from £78,000 in 1895' to £620,400 in 1914, while in the same year our exports to tho enemy were £i75,C00 less, so that was the annual benefit Germany was making out • of the' New Zealand trade before tho war. France bought' more of our ■ exports just before the war than wo took of imports from her by somo ,£80,000; but Japan and the United States have greatly, benefited by a year of war. Trade does not always follow the flag. lii: 1914, when the war had not yet affected trade to any appreciable extent, tho difference between what wo sent to the United States of America and what wo bought from her exceeded £1,150,000. _ In the samo year we had a credit balance as between our imports from and exports to Great ! Britain. of over nine'and a half millions sterling; so that in effect wo had to pay. £1,150,000 to. America out of the British i>ayments.. It is quite possible that manufacturers in Now Zealand could have,supplied some proportion of these' large • importations, and by doing so would havo helped to further the industrial development of the country. Our _ trading with Canada, and „ Australia is satisfactory, for what the Dominion and the Commonwealths can spare they send to us in exchange for what we have in:abundance, and both accouuts in the aggregate were about square for 1915.. It i. is desirable that our trade- with tho other parts of the Empire should be promoted, and when 'ourrnanufacturers and merchants realise that-it will strengthen'the Empire and make for national efficiency they will bend theii energies to develop in. every possibk direction the inter-trade relations of all parts of the British Empire. ...'■, In connection with.this, matter, it ought to be observed and made generally: known that we have always taken from the United States more than sho has taken from us. - Our trado with the States is too one-sided; and in ruga rd to the import trade wo find that it took ten years for Great Britain to double ner trado l with: New Zealand, whilo our trade with the United States praotically doubled itself in twelve months—l9l3-14. There is surely scope hero _ for the enterprise : and businoss capacity of our industrial captains;' WHERE FURTHER DEVELOPMENT IS POSSIBLE. We are importing in wearing apparel, including hats and caps, goods to the vake of one and a half millions sterling annually. Our factories for the. manufacture of suits, shirts, j caps and'.hats ;turn- out goods to ; the value of only one : third of our imports. There-is hero certainly room for tho further development of this industry which now employs only some four thousand hands, one in seven being males. Of boots, and shoes in 1914 we imported to the value of nearly four hundred thousand pounds, while the locally manufactured article ran to some,seven hundred thousand'pounds sterling. About two thousand five hundred employees are engaged in this industry, one-third of whom are females. Viewing these facts, there is evidently room for •' expansion in '■ the shoe trade. In . the manufacture of woollen goods there ' are about ' two thousand persons employed, and' the dozen or'so mills last year worked up into fabrics or worsteds some seven millions of pounds weight of. wool,' the total '.", value > of the output, approximately £800,000. Thi3 industry has been developing slowly but-surely;'still, there-.is reason to believe that, woollen piece goods to the value'of another £800,000 are imported from Then of .hosiery, which is not. now included among woollens in the returns,, we.manufacture about as much as we imported,, namely, £200,000 annually. •_ Throughout tho many industries which, under a measure of protection, are endeavouring to capture the local trade, there is plenty of room for expansion. It may bo a fantastic comparison, but when Great Britain resolved to develop her woollen industry-she. gave free passages to Flemish weavers, encouraged them to settle in England, and prohibited tho export of wool. If all our ■ wool was manufactured in New Zealand, and "realised proportionately tho : same price as our locally-manufactured woollen's .'now do, our woollen industries' output would exceed twenty-five, millions sterling per annum.- That is to say, the wool is sold for ten' millions, and the shipping, charges, and manufacturing adds 150 per cent, to the value of the manufactured product. Tin's but suggests the possibilities that lie before our iudustries, and emphasises their present limitations. INDUSTRIAL ENTERPRISES NEDLECTED. New industrial propositions are not looked upon favourably by the investor nowadays, because, he avers, that one is never-sure of labour. "We have done much in New Zealand to avert labour tioubles. The needs, however, of the nation are sometimes forgotten in the hostilities that arise between Capital and Labour. The employer seeks tho utmost from the workman for tho ■ least, and the workman replies by giving the least for the utmost he can obtain. when wages rise the cost of the product of labour increases, and oven in pre-war days it was significant that tho cost of living had considerably advanced, rendering migratory the higher wages of the employee. And the whole community, 60 per cent, of whom were not benefited either way, had to carry the increased burden. Trades 'unionists and capitalists alike are slow to,recognise that the relations, of Capital and Labour are interwoven. ' One cannot be injured without damaging the other. Capital invested in. enterprises is not always profitable, and capital demands a larger njjnfit in sound business ventures to mako up its losses in other directions. When Labour becomes too exacting enterprise ceases, and Capital lies dormant or goes elsewhere. Tho State in New Zealand has endeavoured to correct tho mischiefs of an unregulated and competitive society, and the exploitation of the human machine has been stopped. Sweated industries are entirely unknown. It has yet to be generally recognised that those industrie's aro most successfully conducted wherein employers and men aro both effectively or-

ganised, and where in tho functions of each are mutually conceded. That ought to be the spirit the whole of those engaged in industrial work. UNWARRANTED FEARS. Some writers, declare that after the war there will be an overstocked labour market, and a great mass of unemployed.; This view i 6 difficult to justify. True, - our men will be coming back from tho war, but not all together. Nor will ffiey be- coming back immediately ; the war: is finished. ( 3"!ie process of resettlement will be gradual rather than sudden. This country will not feel tho aftermath of war in an industrial sense so acutely as those peoples situated closer to the warstorm centre. Thenthe unprecedented waste and destruction caused by the ravages of war will have to be made good, -and that alone will take years and make enormous _ demands upon every branch of our industrial life. To prepsie for .that time is a duty imposed upon all interested in increasing our productiveness, for it will be tho exercise of a national purpose to produce the most for the least expenditure of labour, time, and money that will enable out people to rise to a ■higher plane of national usefulness 'and efficiency.