NEWER IMPERIALISM

Hawke's Bay Tribune, Volume VI, Issue 272, 2 November 1916, Page 3

NEWER IMPERIALISM

REPLY TO PROFESSOR BERRY. HUNS MUST PAY INDEMNITY. IS OPINION OF MR. J, WOOLF. Mr. J. Woolf, a well-known Melbourne solicitor, writes to the Melbourne “Herald” as under:— The statesments that have appeared in a recent issue of “The i Herald” that it will be impossible Ito obtain an indemnity from Ger- • many unless she is allowed to trade ’ as freely as before the war without .r,y hampering restrictions depend I upon a fallacy. It is falsely assumed that because certain individuals or certain ’ traders or banks are ruined, thereI fore the whole of the trade in Germany will stop and production will cease for an indefinite period. This fallacy is pointed out by John ’Stuart Mill in his “Principles of {Political Economy.” He says: An I enemy lays waste a country by lire i and sword, and destroys or carries : away all the moveable wealth exist- ’ ing in it; all the inhabitants are !ruined, and yet in a few years after. < everything ismuch as it was before. I This vis medicatrix natural has been la subject of sterile astonishment.” | Book 1, chapter V, § 7. i COMPETITION FEARED. I What must be remembered is that (the total destruction by the Gerhnans of all machinery and buildings i a Northern France and Belgium was j done deliberately with a view to pre- : venting competition after the war, : but even the Germans would admit {that in a very short time after peace I the north of France and Belgium | would be able to commence to produce again, and that in a comparatively few years the status quo-ante would be re-established. What must be remembered is that the Allies will not destroy German mills or railroads even if they invade ■ Germany. Germany's resourcefuli ness and production depend, upon ■ technical education, which will be i utilised to the fullest' extent, and I she will make marvellous efforts to--1 wards recuperation in a very short , time. I What also should be foreseen, according to the statist’s methods cf calculation, is that there is an -n--erease of population of l-l per cent, a year. According to this basis, the probable population of Germany, based upon the increase from io 1913, which was at, this rate of 1J per cent, a year, would be in 3d vears 96,000.000. and in 100 years 229,000.000. This increased population would necessarily work at a high pressure ; and under the intense methods of education and technical knowledge, what would the result be ?

It must be remembered also that the German methods ot iraud its trade are such that it will be impossible to prevent the entry of geeds into British countries through neutral sources; further that the Germans will trade with neutral nations, j AMBLE TIME TO PAY. .What, therefore, should be decided upon is the insistence upon Germany paying the idemnity and allowing ample time for same to lie paid. Security is readily found byexcluding the German flag from the ocean. This is a material guarantee cf payment. The British Navy has already caused the disappearance of every German flag from the ocean, and should continue to do so. The Allies should notify every German ship-owner and manufacturer that no goods could be shipped in Germany bottoms, and they- would be prevented from competing with the Allied Powers, and particularly Great Britain.

For instance, a bale of wool, prior to the war, bought in Australia, was shipped by the North German Lloyds at a minimum cost. Their steamship companies also enjoyed a subsidy, so every industry that produced goods in Germany and exported from Germany to Australia was indirectly granted a bonus t o compete with British goods. If there was no German ships the wool would be shipped to London and reexported to Bremen or Hamburg. All the intermediate and exchange charges would be earned by a British shipowner, merchant, or banker. The German then would have not merely national competition, but would have to pay the whole of the charges. In other words the German would continue to occupy a servile position to the British. He would pro tanto, then be a commercial slave to the British manufacturer, and this would continue until the indemnity was paid. PROFITS TO THE BRITISH.

They could still trade, but they would be weighted by being prevented from unfair competition with Great Britain by the destruction oi the bonus system applied to their shipping and also to their railway system. Secondly, net profits of the State railway should be taken over by the Allies(until payment of the indemnity)as further security ; and. thirdly, an additional cost of carriage on British ships and a moralised charge would have to be added to the goods manufactured by Germans. The Germans, therefore, would still trade, not merely with the neutral nations, but also with the British community (if it were s< permitted), but they would have to pay an indirect charge fo* the ser vices rendered, and the profits ■would go to the British race, as the chief carrying power of the world. 1. -There should, therefore, be complete payment to the Allied nations of the whotle cost of the war.

2. Complete exaction to the last farthing for the whole of the pecuniary damage caused by the loss of lives, actuarial calculations, based upon the earning power of each individual killed or wounded, and the actual amount due to each combatant, his widow and child should be computed and included in the .account.

3. The damage done to all buildings of the Allied nations should be carefully estimated by independent architects. The architects should be appointed to value the actual damage done to buildings destroyed and the necessary reparation. 4. A complete estimate should be obtained for the loss of crops, animals, and so forth.

5. Then if the total amount of damage should be £20,000,000,000 or more, not one penny should be given up.

FINANCIAL CRASH EXPECTED. There will, undoubtedly, be a great financial crash in Germany for the first few years after the war. There is no reason, however, to assume that the Allies will be foolish enough to help a vanquished nation (merely because it is financially weak) to escape being compelled to do complete justice. All German naval and military expenditure must be cut out until the indemnity is paid. There is no moral compulsion that the. money must be paid within five, 10, 15 dr 20 years. There is nothing to prevent it being extended to 100 years. As a matter of reason, it would be better for the British Empire to have the time extended for 200 years than paid in 10 years, as this‘would involve a guarantee of peace, and during that time the British Empire would be solidly working to establish its trade, industry and commerce in the world’s markets. As regards the actual amount ot payment of the indemnity, all that need be paid would be the interest, say 1 per cent, a year, and the establishment of a sinking fund of 1 or i per cent, a year would be ample to provide for the repayment of the capital. As additional security for the payment of the indemnity, part of the Customs revenue of the country should be collected by an International Commission under the methods which have been adopted in China for many years. This would enable the fund to accumulate, so that gradually the whole amount of the indemnity would be paid. PITY FOR THE CONQUERED. What is to be feared after the war is that the British race will be disposed to pity a conquered nation, and -weak forgiveness will only' result in the Germans (who will never forgive or forget) being encouraged to renew their war revenge. It will then be inevitable as the price of British folly. The Germans have deliberately sunk every ship in sight, whether neutral or belligerent, with the obvious purpose of being the only nation having ships safely in harbour readv to trade immediately peace is proclaimed. The Germans rely on the British observing the rules of public international law, which is that private property, except used for belligerent purposes, is safe from capture. If used for belligerent purposes, ships would be clearly confiscated. The right use, or even when necessary to destroy, the property of neutrals (under the name of Angary) is upheld by most' writers on international law, and has been enforced by the Germans, who, in the FrancoPrussian war, deliberately sank English vessels in the Seine to prevent French gun-boats from running up the river; so there is ample justification in international law for British. seizure of German vessels, but the British do not steal private property. They can purchase the ships and give credit as against an indemnity. It would be a national crime if a mere fiction of law which the Germans have outraged should be allowed by the British to build up German commerce and trade when the P.ritish have the absolute control of the situation. In other words, will the British throw away their British supremacy after their sacrifices in men and money ? AUSTRALIA’S NEED. Australia cannot afford to .do without the indemnity. In Australia the | huge war taxation, as well as the State taxation, is paid by the individual. There are 920,000 householders in Australia to pay the Federal, State, and municipal debts, including new State public works, and also war debts and war pensions (which will accumulate), amounting in all to about £1,000,000,000, within the next few years. This huge debt must all be paid for by the few producers, or else repudiation or bankruptcy must ensue.