EMPIRE PROBLEMS

Manawatu Standard, Volume LVI, Issue 262, 3 October 1936, Page 7

EMPIRE PROBLEMS

OF IMMEDIATE CONCERN. LORD ELIBANK’S ANALYSIS. WELLINGTON, Oct. 3. A survey of some of the problems of moment now facing the Empire and which will be discussed at the business sessions of the congress, was made by Y T iscount Eli bank in his presidential address at the fourteenth Congress of the Federation of Chambers of Commerce of the British Empire yesterday afternoon. Referring to the recent devaluation of the franc, he said the 1933 congress had recommended that the Empire countries should systematise and develop their present currencies in the form of a sterling union. Lord Elibank said, inter alia 1 : “In addressing you as your pre-si-dent at the opening of this fourteenth congress you would, I know, wish me to express the profound grief of the business men ot the Empire at the loss which we have sustained through the death of our late beloved Sovereign, King George V. Of his qualities as the supreme head of the British Empire, and as a simple, conscientious man, those in high places all over the Empire have already spoken. King George honoured us by consenting to be patron of many of our congresses and invited the delegates to Buckingham Palace on every occasion that the congress met in London during his reign. “It is a matter of deep satisfaction that His MajestyKing Edward VIII, has graciously consented to be patron of this congress. I propose presently to ask for your authority to send to His Majesty a message of congratulation, of loyalty arid of dutiful service. “It is exactly fifty years since the first congress was called together by the London Chamber of Commerce, which in those early days acted as convener, a duty which has since devolved upon this federation. In fact this is our jubilee year. I am sure the New Zealand delegates here to-day will be interested to know that not only Wellington, but Auckland, Christchurch, Dunedin, Invercargill, Napier and Nelson were represented at that first meeting in 1886, and may I add that Wellington has missed only two of the whole series; Auckland, Canterbury' and Dunedin only three—surely a remarkable record for a Dominion situated so far from London, where most of the congresses have been held.

“It is fitting that we should celebrate our jubilee in New Zealand, which does a larger import and export trade with the United Kingdom per head of population than any other Dominion. OTTAWA AGREEMENT.

“In some directions little progress can be recorded; the resolutions to come before this congress provide evidence of that. 1 think it is generally felt in commercial circles that while the foundations that were laid were Bound the results ot the Ottawa Agreements have so far fallen somewhat short of expectations. They have certainly been effective up to a point, but I might be permitted to suggest that the various Governments concerned are perhaps moving forward too cautiously!' 1 will not say more on this occasion for the whole subject is to be debated next week. “On the other side of the picture we find ourselves faced by competition from countries having a very low standard of living, which we have helped to equip with the most modern machinery and transport. Unless we recognise the changed conditions and adopt new methods to meet them, unrestricted competition in price will lead to retrogression rather than progress in civilisation. The advanced nations must protect themselves against this, unless —which .would be far wiser—means can be found to induce the backward nations to raise their standards of living. “We passed a resolution in 1933 drawing attention to the fact that the immense advances which had been made in the science of production had not been paralleled by a corresponding advance in the monetary system. That resolution called upon the Governments of the Empire to concentrate upon finding a monetary system which would enable the peoples of the world to receive the benefits of the abundance of food, raw materials and capital equipment which technological improvements had made available. “This is one of the major problems of our time. Its solution would open a new and happier chapter in human history and, moreover, would remove one of the principal causes of war. lor the first time in history there has been a crisis of great severity', due largely to abundance and not, as in the past, to scarcity. One of the. most essential points in connection with the solution of this problem is the stabilisation of exchanges and the removal, so far as possible, of trade restrictions and quotas. DEVALUATION OF FRANC.

“Within the past few days there has heen a very important incident: a great and ameliorating change has occurred hy the devaluation of the French franc, which is being followed by the devaluation of their currencies hy both Switzerland and Holland and hy other countries still on the gold standard. This creates an entirely different situation and presents a real hope for international stabilisation of exchanges for which the world has long been yearning. “At the same time, we within the Empire have our special interests to safeguard in view of our trade agreements and other measures which we have taken for Empire trade consolidation. We also presume that other colony-owning nations will make arrangements to meet their conditions. Consequently, I cordially welcome the paragraph contained in the Declaration of British Policy issued by the London Treasury last week, in which the British Government says that, oi course, in its policy toward international monetary relations there must lie taken fully'into account the requirements of the internal prosperity of the Empire countries, as corresponding considerations will he taken into account by the French and American Governments. There is, J am sure, no delegate to this congress who will not warmly endorse that statement. “We are living in unsettled, not to say dangerous, times. The war to end war terminated in 1918, yet almost ever since war clouds have hung on the horizon. Many nations are looking to the British Empire for leadership. and we must have the courage to recognise that new world conditions have arisen and that because certain methods have served us well in the past it l)v no means follows that tliej will serve in the future. A great responsibility rests upon the British Empire: may we, as representatives of the commercial communities of the Empire, in our deliberations and act ions, he worthy of our trust.