The Grey River Argus TUESDAY, March 18th, 1941 AMERICAN INDUSTRY TO THE RESCUE

Grey River Argus, 18 March 1941, Page 4

The Grey River Argus TUESDAY, March 18th, 1941 AMERICAN INDUSTRY TO THE RESCUE

The meaning of President Roosevelt’s latest speech is taken by British countries generally to b’e that America now is morally in the war. That is obviously the interpretation which he would wish. Hence the question might be prompted as to why there should be any delay in actively and directly joining in the war. The answer probably comprehends several considerations. One seemingly is that Britain is able, with such material aid as will be provided, to defeat the Axis Powers in due course. Another is that of specialisation. Were the United States first to concentrate her productive capacity upon her own forces, Britain would have, to wait for much of the material that now roaches her very rapidly. Moreover, though the American Army to-day may. number a million, it is not comparable with Britain’s far greater forces, in several respects, such as training and experience. There is also the matter of disposition. After the United States Army has been trained, and it may not be until next year, it would have to he transported in order to play, a part in Europe, whilst a facility for this is not yet evident, even in the Middle East. It would bo. time to talk of such a thing when there, is an opening,’ and it can be taken for granted that the moment one does appear, it will not be ignored. On the other hand, the British Treasury meantime has begun liquidating in the United States valuable Britishowned industrial assets in order to meet debts already contracted in advance of the Lease and Lend Act which has occasioned this heartening address of President Roosevelt. Though it provides for an initial outlay 7 of seven billion dollars, or about £1,750,000,000. the expendtiure will cover a considerable period, its importance being that it represents continuity 7 no less than rapidity in the despatch of munitions and other materials, including foodstuffs. If the extensive interests owned in the United States by British nationals, estimated to total £350,(100,000, are all gradually liquidated in discharge of war debt, the question of mortgaging . other wealth may' arise, but it will not, in Mr Roosevelt’s conception of matters, halt in any way the supply of sinews of war. But the process does point tn a post-war variation in Britain’s economy, such as we quoted the other day in reference to the remarks of a correspondent, who to-day . assumes that Britain will continue as of yore the leading creditor nation. This is as patent a fallacy as that the Dominions will contemplate a future in which they shall remain always debtor countries. Our correspondent’s free trade dogmatism arises from the imagination. He must realise that when two or more countries are joined together by’ free trade, the one with a superiority in productive power and natural resources tends to impoverish those which suffer from an inferiority. No country can afford to he consumer of the machine-made goods of another country .indefinitely. Thus Britain after the war will be unable to admit American

ducts as war time, because ur vuWßlPave her people without means "of payment. Because we co-operate in war policy with Australia is not to say that we could let our fruit industry, our wheat, industry, and many of our manufacturing- industries lapse entirely by allowing Australian producers the. run of our market. If we federated with Australia, that process of destroying our secondary as well as primary form;; of production would go on just the same. As for unification of countries, Hitler is a great exponent of that idea, so long as he does the unifying. It is because of a desire that each country shall be free to fulfil its own destiny that the democracies oppose him in his particular policy of “unification.” Our correspondent is scarcely accurate in his contention that New Zealand manufacturing has decreased under the policy of pro tection. Output, wages and numbers employed all indicate the contrary. It is only by perfecting this development that we shall be fitted sooner rather than later to' pay off our overseas debts. He is quite correct in the reason given for the conversion of Robert Peel to the repeal of the corn laws, but nobody would credit the contention that this reason was a justification, or that the main factor was not the growing power and preponderance of industrial capitalists in England rather than starving people outside England, who really brought about the change. After the Avar, a process of reversal is probable, and “The Times” sees the writing on the wall. Time was when markets could be found for expanding manufactures, but where arc there new ones now? It is because the United States has, under protection, become the world’s greatest manufacturing nation, that the fact of her adhesion to Britain spells the victory of Britain.