TITAN OF EMPIRE

Evening Post, Volume CVIII, Issue 136, 5 December 1929, Page 10

TITAN OF EMPIRE

BRITAIN'S BURDENS

STAGGERING UNDER LOAD

CALL TO DOMINIONS

The most disquieting fact that came under my notice was that Britain, which before the "War was ahead of all other countries in. exports, is now third on the list, the United States being first and Germany second. The fact is that England is staggering under a load of debt and other disadvantages, of which people in the Dominions have only a small conception. It is really marvellous that she has maintained her position so well. It shows the tenacity of the race in fighting on in the face of almost overwhelming difficulties. Such was the reply made to a "Post" reporter to-day by the Hon. W. H. Triggs, M.L.C., when, asked how ho found the condition of trade and industry in the Old Country, and what he thought of the future prospects there. "The United States," added Mr. Triggs, who returned to "Wellington today by the Buahine from London, "was able to go ahead with industries of all kinds during those year 3 when England and her Allies were fighting for their lives and liberties, before America came into the war; and England is now bowed down to the earth with taxation, a large part of which is going to America to pay interest on the debt incurred by Great Britain in order to keep the Allies from collapsing during the most critical part of the war. The Mother Country is not only paying these debts in full, but has generously agreed to remit a large part of the debts owing to her by her Allies. FRANCE'S LIGHTER BURDEN. In France the taxation is much lighter than in England, trade and industries are progressing, and there are practically no unemployed. "France, indeed, has, in my opinion, reason to be especially grateful to England. Independent of her debt to the British Government, in regard to which she has been so generously treated, it does not seem to be known that during the war loans to the extent of many millions sterling were floated by France in England, and the English people were encouraged by the British Government to invest in those loans, as by so doing they would bo helping to win the war. Unfortunately for them, the loans were subscribed in francs and are repayable in francs, not in pounds sterling. When the loans were subscribed exchange was roughly twentyfive francs to the pound sterling, but since the war the franc has been 'stabilised' at 125 francs to the pound. This means that the investors are receiving only one-fifth of the interest which they understood would be paid, and they will receive only one-fifth of their capital back when the loan is repaid. GERMANY IN FAVOURABLE POSITION. "Germany is now in a particularly favourable position for competing against England in the world's markets. By the deliberate depreciation of the mark after the war, not only was the heavy internal debt wiped out with paper that was intrinsically worthless, but the great manufacturing, and trading concerns were enabled to discharge their mortgages and debentures in the same way. They were thus able to start afresh with a clean sheet, so far as debt was concerned. Even the conditions imposed in the Treaty of Versailles, with a view to preventing the speedy recovery of Germany as a military power, are turning out a blessing in disguise. The money which would otherwise have been spent on armaments has been devoted to the development of industry and commerce, while other European countries continue to spend huge sums on their armies and navies. A highlyplaced Government official, with whom I had a very frank talk, said that one effect of the restrictions was that the Germans had been obliged to concentrate in other directions, notably the air service, in which he believed they were far ahead of other countries. He added: 'You took away our ships of over 1000 tons' register; consequently we have had to build new ships, and we now have a mercantile marine of absolutely new ships, with the latest improvements, and this is bound to give us an advantage.' ALL WORKING HARD. — "It is due to the Germans to say that they are all working—masters as well as men—with what looks like desperate earnestness to gain for Germany, if possible, industrial and commercial supremac}-. Lord Eothermere, who visited Germany shortly before I did, in recording his impressions, said that there were scarcely any golf courses in Germany, and the English practice of taking the week-end off was unknown there. I had the opportunity of going over Siemens great electrical works near Berlin, and was struck with the great activity and general appearance of efficiency. It was reassuring to learn from an eminent engineer, who was one of the party, that works just as extensive and up to date in their methods are now to be seen in England. 'Before the war,' he said, ',the United States and Germany were ahead of us m electrical work. Now we can hold our own with either of them.' It was not so reassuring to learn that Siemens had got the contract from the Irish Free State for harnessing the Shannon, involving an expenditure of about BRITAIN'S LABOUR PROBLEM. "It looks as if the present Government will have more difficulty than its predecessors in solving the labour oroblem," declared Mr. Triggs, when asked what he thought of the position in regard to unemployment at Home. "The coal trade showed gratifying signs of reviving; but there were still thousands ot miners and their sons out of work, and a fresh crisis was threatened "on account of the Government having brought in a Bill reducing the workingday to 7-J hours. This was in pursuance of a promise made before the elections; but the Government now has to admit that it could not guarantee that there would be 710 reduction in wages. The mine-owners emphatically declare that if hours are reduced without a corresponding reduction in wages they cannot carry on; and the representatives of the miners say that they will not submit to a reduction." TRADE WITH DOMINIONS. In regard to trade with the Dominions, Mr. Triggs said that Mr. Philip bnowden had declared emphatically against a policy of preference, and the modified form of protection known as "safeguarding." The British Government, however, Mr. Triggs believed would realise, if it had not. already done so, the importance of encouraging 1 exports to the Dominions, and would ] support the Empire Marketing Board 1 and any other form of encouragement < that did not involve tariff protection i •^lr. Thomas,"* he stated, "has an- i nounced a policy of developing the re- t sources of the Crown Colonies, and be- J lieves this will indirectly reduce unem- ? ployment in England. Unfortunately t the most important step taken so far by i the Government with a view to encour- s aging British industry, will benefit, not (

the Dominions, but their most powerful competitor. I refer to the agreement negotiated by Lord d'Abernon with Argentina, under which the latter undertakes to buy so many millions' worth of manufactured goods on condition of England taking a corresponding amount of foodstuffs from the Argentine. This will include a quantity of frozen meat and dairy produce, which would otherwise have been supplied by Australia and New Zealand. Both Argentine lamb and butter have been greatly improved 1 in quality, and are seriously cutting into our New Zealand trade.

"I should like to make it plain (said Mr. Triggs, in conclusion) that, in'what 1 1 have said about the advantages enjoyed by France and Germany, my desire is not to disparage those countries. Nor do I wish to criticise' Mr. Bauisay Mao Donald's Government, which is in a difficult position and is, I believe, honestly trying to do the best it can for the country in the circumstances in which the Government is placed. What I want to do is to impress upon Kc\~ Zealanders, -with all the earnestness in my power, that the Mother Country is labouring under great burdens; and that, to meet the terrific competition with which she is, faced, she needs more than ever the sympathy and active support of every loyal member of the Empire.''