Economic Trench War

Dominion, Volume 27, Issue 35, 4 November 1933, Page 20

Economic Trench War

DESPITE the apparent capacity of the Irish Free State to settle down to economic trench warfare and offer solid resistance to British economic pressure, it is clear that the Irish economic position is not easy,” says the “Financial News.” “The Budget of this spring was not the grim statement that had 'been predicted ; but it avoided grimness largely by unsoundness. “The quite uneconomic export subsidies are continued, and thoii cost is to be met largely out of capital account. It would be rash to predict too readily that the financial policy of Mr. De Valera’s Government will break down immediately—for we have already seen the I* ree State s capacity for resistance —but it may well be that the Government cannot look ahead with any comfort. “Nor can it derive much comfort from the results of the economic war. Admittedly it can boast that if its exports to the United Kingdom have fallen by £5,556,000 iu the first half of 1933 (compared with the first half of 1932), its imports from the United Kingdom have fallen by £7,189,000. But such figures as these are misleading as to the real effects of the economic war. “The net effect is that while the United Kingdom as a whole bas not suffered- a serious proportionate fall in her total exports, the total Free State exports have fallen for the first six months from £14,325,172 to £8,759,157. or by 39 per cent. “Moreover, if the dot) jils of the trade account are examined, the

unsatisfactory results of the economic war are still clearer. Much the largest proportionate decline in Irish imports is not in manufactured goods, which would inconvenience this country most, but in food, and especially feeding stuffs for animals. “To a country whose main industry is the raising of live stock, animal foods are a raw material. The Free State, therefore, must either be reverting ‘to more primitive feeds, in which case her hopes of success against competitors in outside markets must be abandoned, or else she has been using up her stocks, and will soon have to begin importing again. “In any case, feeding stuffs are of little interest to our exporters. In the textile and clothing business we have suffered to some extent; but only to the extent that the Free State is willing to do with less clothing or with inferior and more expensive home products. For there is little sign of other countries taking over the business which we have lost. “Meanwhile, if the Free State import ban has beeu only partially effective against us, the effect of our barriers is obvious in the very heart of the Free State’s export business. The live animal export, which is much the most important division of all, has 'fallen, for the six months, from £7,155,169 to £3,461.055; and the second most important group, of food, drink and tobacco, has fallen from £5,629,077 to £4,422,107. For a while the effects of such economic discomfort may be warded off from the main body of the electorate; but not for long. Nine bean rows and a hive for the honey bee may appeal to romantics like Mr. De Valera, but to the ordinary man they are of limited attraction.”