TRADE-OR FIGHT?

Northern Advocate, 1 December 1933, Page 6

TRADE-OR FIGHT?

ALTERNATIVES FOR THE NATIONS : JAPAN’S CHALLENGE •CRISIS- APPROACHING RAPIDLY “Markets are limited, and if Japan is prevented from using them her only alternative is to fight. I think it would be far safer to trade with Japan than to fight her.” f For about two hours last evening (Thursday), Dr. G. M. Smith, of Rawene, held the rapt attention of the Kaikohe Chamber of Commerce when he gave a talk about Japan. It is safe to say that his audience left the room with a highei opinion of the mentgl and physical capabilities of the Japanese and that every one of his hearers had been given cause to ponder deeply on how Japan so financed her industries that she could capture foreign markets with her goods at such low prices. On this point Dr. Smith stated without equivocation that as the result of Major Douglas visiting Japan in 1929 a system of national credit had been adopted. “It is used in a left-handed sort of way at present,” said Dr. Smtih, “with the result that the rank and file of the people are not getting the full benefit that they should, but before long the whole principle of Douglas Credit ■will be adopted, and then Japan will lead the world.”

By special invitation, Dr Smith was addressing the meeting. He said he had been asked to speak on the “ Menace of Japan,” but perhaps it might be more correct to term it the “Blessing of Japan.” That would be for his hearers to decide. He spoke of the slate of the world and predicted that the crisis would conic when the American Senate meets in January., In his opinion “the bonnets were on the green” now. He was convinced there would be no war in Europe but that there was every chance of war in' the Pacific and that the problem of civilisation would be solved there.

The reason why Japan could manufacture goods at such low prices was not due to low wages, long hours of work and low standard of living. It was due to the credit system of tinancing. There was indirect taxation on the people to make up the loss to the producers, but money was not being depreciated any'more than if a loan had been raised. It was not so bad as tl\o •subsidising of Australian butter under the Paterson Scheme. Japan was “knocking the other nations on the head.’’ She was using her credit. America was depressing her currency in order to capture overseas trade. It was obvious that the country with the greatest inherent national wealth could knock out a poorer country on these principles if it wanted to go to extremes. America could swamp Japan because her national credit was infinitely greater than Japan’s. If Japan’s markets were closed she would undoubtedly- fight. Dr. Smith stressed that the military were all powerful in Japan and he emphasised how efficient the nation was in every way.

In concluding, Dr. Smith announced that, early in the year—the end of January or early in February—Major Douglas would address a meeting in ICaikohe. He did not knoAV why Major Douglas had chosen to come to Ncav Zealand, but he-presumed it had something to do with the Japanese question.