TRADE AND PEACE

Evening Post, Volume CXXIV, Issue 108, 3 November 1937, Page 10

TRADE AND PEACE

NATIONALISM AND WAR

IDEAL OF FREE INTERCHANGE

SAFE INVESTMENT

(gpeclat to the "Evening Post.") TIMARU, This Day. Economic nationalism, said Mr. M. G. C. McCaul (Wellington), president

of the Associated Chambers of Com-

rnerce, in his address to the annual conference, holds no promise of peace and betterment of "the human race. The future lies rather in the lowering oE barriers to trade, and, Mr. McCaul suggested, perhaps in a new conception of the rights of nationals to invest, with safety, in countries outside their own'dominions.

"Statesmen sigh for world peace, and by "their actions endanger it," said Mr. McCaul. "Jhey give lip service to the paramount necessity for increasing world.trade, and by tariffs, quotas, subsidies, and a host of other restrictions and manipulations, make it increasingly difficult for the trading community ot the world to exchange the world's commodities Governments will announce a policy in favour vof world trade, sending delegates to world conferences to further it, and at the same time follow a domestic policy of a highly nationalistic character. I am convinced that a nationalistic policy as opposed to the cultivation of international trade will not succeed because it is opposed to the true law of bet- ' terment. Peace and good will between nations is essential to the permanent prosperity and well-being of the people and to the maintenance of a high standard of living based upon the' interchange of goods between all nations." TRADE AND PROSPERITY. A study of the history of the past hundred years, showed clearly that the promotion of world trade had been the main factor in the steady rise in the standard of living of the people as a whole: without world trade it would have been impossible. Mr. McCaul said 'that he did not agree with a remark made recently by Lord Bledisloe that economic nationalism had undoubtedly in a relative sense come to stay, and he did not agree, because lv. was sure, that the present wave of economic nationalism, based largely upon fear of war and upon a wrons conception of economics, would pass away as the eyes of the people of the world became opened to the truth that no nation could permanently benefit at the expense of others, and that the prosperity of each contributed to the Prosperity of aIL Peace and good will between nations was essential to tho permanent prosperity and well-being of the people, and peace and good will could not obtain while economic nationalism reigned. ' A NEW INTERNATIONAL LAW. "The view is very generally held among thoughtful men that modern wars have their root causes in economic factors. The rulers of Germany, Italy, and Japan have frequently stated that. colonies from which their nationals can draw raw materials are an economic necessity to them. I think we should face up to the fact that if a nation cannot obtain its vital necessities by peaceful means, it is driven by economic necessity to seek them by war. I submit that the time ■ is ripe for the institution of an international law to be administered by the League of Nations giving equal rights, opportunity, and security to the capital of all nations in7all countries. "Under such international law, each country should be free to .institute what laws it wished governing the . rights of people and capital in its own ' country, providing equal.rights were given to people and capital of all nations. No nation should consider itself the absolute owner of its country and its undeveloped wealth. A realisation that nationality is but accident of ibirth," arid that the span of man's life is so short as not to count in the life of the earth on which we dwell, forbids such a thought. If wars are to be abolished, and peace and good will to reign, the rulers of countries must regard themselves as trustees for mankind, present and future. ."If the private citizens of Germany, Italy. Japan, and other countries who require to import iron ore and many other raw materials vital to the existence of their nation, were free to invest their'capital in mining and. plantation ventures in the home countries amd colonies of all nations without fear of discrimination in time of peace or confiscation in the event of war, the world would in course of time become so closely knit together by bonds of trade and personal friendship as to make war almost impossible." BRITAIN AND AMERICA. Iri May 6f this year an announcement was made that the British and American Governments were interchanging ideas with a view to the promotion of trade agreement and the mutual reduction of tariff ' barriers. That event might be made to mark the opening of a new era in international economic relations wherein each country would recognise that its people could not remain prosperous unless the world also was prosperous, and therefore to ensure its own prosperity it must.first contribute to world prosperity. ' How would New Zealand fare if the British Empire followed the example of the United States and adopted free trade between all countries where the Union Jack is flown, continued Mr. McCaul,.and what would be the position of each component part of the British Empire: if the United, States jqined.with the British Empire in such a-Zollyerein? As is the case with all changes, some interests would gain and others lose, but it should not be beyond the wit of man to devise a plan of contribution and compensation to cover the industries chiefly affected. The reward of success would be great: a substantial lowering of the cost,of living and consequently a rise . in-the standard of living. ; "So mighty a free trade Zollverein would act as an irresistible magnet to other trading nations." he said, "and one,by one they would be drawn into its orbit until in course of time it might- be found possible completely to remove all trade barriers between nations living at approximately the sabie standard. . Free trade of itself would tend to promote a universal standard of comfort, each country contributing; its quota towards the wellbeing of the rest,"