THE PRODUCERS' VIEWS

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

THE PRODUCERS' VIEWS

A NEW ORGANISATION . A TRADE COMMISSIONER'S COMMENTS The prospects of British trade after the war, and- tho problems that will have to be faced immediately after tho conclusion of peace, were discussed by Mr. G. T. Milne, His Majesty's Trado Commissioner for Australia, 'in the course of an address before the Australian Association of British Manufacturers. ■ Mr. Milne has recently returned from a business tour through great Britain, Russia, and Japan. He referred in the course of his address to the United British Industries Association, a body formed by leading manufacturers in the-United Kingdom. The members of this body have subscribed £1000 each towards the formation of a central fui\d, and the association promises to Tie a very powerful factor in the promotion of industry and the development of markets.

"The new association of manufacturers," said Mr. Milne, "will form a convenient medium for voicing before the Government airtf the country tho opinion of our producers. If rightly directed, it should he a most valuable medium for bettering; the relations between capital and labour. It .has, indeed, this distinctly in view, and I understand that one of , its earliest tasks will be to obtain by - accurate mothods data as to the cost of pfoduction. in the various industries. _ If this, is secured, a basis of discussion .will j be afforded for discussing with trade unions the true relations of capital and labour. I often think that capital has much to_ learn from labour in regard to organisation;-this latest product of the war'may prove that the manufacturer, as well as the workman, sees that withoui co-operativo effort there can jie bu| 'little progress. Hitherto labour'in the United Kingdom has not invariably appreciated the importance of the export trade of the country, its' difficulties, and 'in what way foreign competition in oversea markets affects production in the United Kingdom. If. any lasting cooperation between labour and capital is to bo brought about, this feature in their relations, to mention only one, must be studied in all its' bearings, and the investigation of the cost of production in various industries, proposedto'be undertaken by the new/association should be helpful both to themanufacturer and' the workman. Tho fiscal policy of the country, the relations of the banker and the manufacturer, transport problems, and last, but not least, the relation of soience to industry, _ will all .doubtless engage the attention of the sections, and committees' of tho new body, which is stated; to be non-politioal.' in character. It will, in effect, be a great clearing-house for exchanging ideas and formulating 'policies, haying as its aim national co-operation in trade. If some of the high ideals and generous enthusiasms born in a period of grave national stress may not reach that full fruition which their oxpononts havo in view, the formation of such a body as that mentioned: is a big-,step forward,', offering_ a pleasing contrast to the excessive individualism of the past, which was not altogether free from mutual suspicions." "The revelations made as to means employed by the German manufacturer and merchant to* oust competitors,' and the knowledge that commerce has been prostituted for tho purpose of military aggression, suggests that, in future, the ports of the United Kingdom cannot remain open to the German'people on the same terms as those on which we admit our Allies, or even friendly neutrals. In the great national stocktaking now in progress, tho demand for a reform of our fiscal policy has become more urgent than ever before. Not only

has a sub-committee of the Advisory Committee to the Board of Trade on Commercial Intelligence recommended the imposition of import duties, but a committee of the London Chamber of Commerce has outlined a -provisional tariff on imports, under •which a graduated preference is given, firstly, to ■countries within the Empire, secondly to our Allies, and thirdly : to friendly neutrals,' while maximum Tates, plus a surcharge varying in amount, would bo levied on enemy goods. ' The duties on goods from the Empire countries would be minimum rates on manufactured and' semi-manufactured goods,. as well as articles ' solely used as raw materials in industries, and on manufactured foodstuffs, less any percentage of duty those countries accord as a, preference ito the Mother Country. Ra,w foodstuffs and raw material would bo free from all sources. It is suggested that the temporary ad valorem tariff should operate for five years, during which time a tariff commission could take evidence, with a view of framing a- tariff of _a more permanent kind. 1 have no opinion to offer on the projcct outlined by the London Chamber, of Commerce, on its value as a revenue producer, or as a. measure of protection to British- industry.. Its chief merit is that it is constructive, and affords a basis for discussion. The changed attitude of the British jioople as regards fiscal policy is evident when a sub-committee of my own department, and a body, such as the London Chamber of Commerce (largely composed of merchants), pass resolutions favouring a tariff in .the one case, and actualy outline one in tho other. Britain will undoubtedly adopt a tariff in some form or other—even tiio Manchester Chamber of Commerce recognises tho need. . . If we succeed in crushing German militarism, we must bear in mind that | some time may' elapse before Germaii democracy becomes the dominant factor in German policy, before the German nation fully realises that it has been living in a state of political slavery, and that thi6 great war has been necessary to effect its emancipation. During that interval it would be a measure of common prudence to put Germany on a low eoohomio diet, lest the fover from which she is suffering should break out anew; in> other. words ? ■we cannot afford to run any risks with a Power that, regards. commeroial expansion as an. instrument of military aggression. What the economio situation of Germany after the war will b'o ifc is difficult to say. Sho will,' at least, have an enormous debt, mainly internal,' and presumably a huge inconvertible currency; Britain will have the former only, I think._ On tho an. indemnity, opinion is much divided. Provided its payment were spread over a large period, as indeed it\would have to be, the element of danger, viz., a rapid economic recovery followed by an outbreak-, would be minimised. Confiscation of German shipping to replace that belonging to the Allies destroyed by submarines is a reasonable demand."