Nelson Evening Mail. FRIDAY, NOVEMBER 2, 1917. THE ECONOMIC ISSUE.

Nelson Evening Mail, Volume L, Issue 175, 2 November 1917, Page 4

Nelson Evening Mail. FRIDAY, NOVEMBER 2, 1917. THE ECONOMIC ISSUE.

AN interesting aspect of the latest German peace proposals that has not hitherto been duly, emphasised is discussed in a recent number of The New Europe. With the speech made by the recentlyappointed and retired German Chancellor (Dr. Miehaelis) on July 19' there come a distinct change in the attitude v»i the German Government. The change consists in the prominence which that government now gives to the economic issue in its pronouncements on' peace terms. Dr. Miehaelis spoke of "give and take," of a peace based on "a lastin- reconciliaCion of the~nations," and then proceeded to define more closely his meaning by pointing out that the peace which he contemplated "must prevent the nations from being plunged into further enmity through economic blockades, and provide a safeguard that the league in arms of our opponents does not an economic offensive alliance" against us." Mis offer, for such in effect it was, was scornfully rejected by the Allies, Mr Lloyd George forcibly expressing their views in a trenchant reply. ..hat Dr. Miehaelis meant by a "give and take" peace was a peace by which Germany would surrender occupied territory in Europe in return for the surrender by the Allies (1) of economic advantages, and (2} of territory overseas. It is with the economic advantages that the writer iu The New Europe is c-ieflv concerned. In Germany's tentative offer of December, 1916, these did not figure. Their introduction in July, 1917, was not, thera fore, due to tne/Paris Economic Conference, which, from the comments on it in Germany, clearly did not strike fear into German minds. It is rather the new economic situation arising out of the intervention of the United States that has brought about the German change of attitude. The {Paris Conference dealt with post-war economics only in terms of mavkety and "dumping" tariffs, and other measures for hampering exports from enemy~c OtTn tries. Tht Germans looked to counteract a policy of this kind by making use of conflicts ox interest among the Allied l nations, and by strenuous organisation of ness after the war. At that time ■ so' large and important a section of the world was still neutral that theyi thought the Allies would experience difficulty in carrying through their proposed post-war measures. They argued that people did not buy German goods before the war out of Jove for Germany and that once again 'quality and price would outweigh sentiment in the long run. - erhaps the Germans underestimated the strength of the moral feelings they had' aroused, but at anyrate they were not then greatly exercised about the outcome. Now, however, the centre of gravity has changed irom exports to imports. "The problem of the immediate postwar period is seen to be one, not of markets but of supplies, not of devising means for keeping out enemy goods but of diverting from the borngry grasp of the enemy the raw materials, without which- German goods cannot be manufactured. The shortage of shipping, ioodstuffs, and raw materials, is, in fact, producing a situation in which all the old landmarks of fiscal policyi are

submerged. . . . The German Government's most anxious concern at the moment is how it is going to provide tood, clothing, and employment for its own people on the conclusion of ipeace. To put it in a sentence. What the Allies threatened a year ago was the reconquest by Germany of her foreign markets; what they threaten to-day lis tile restocking and revictualling of blockaded Germany herself." After three years of warfare the stocki of' raw materials at the disposal of the Central fowers has run very low, and the task of replenishing is art even more 'serious? consideration than that of obtaining food supplies. Without Taw materials* Germany cannot "reconstruct" her iudustries, or even revive the fertility of her soil. Without employment for hex industrial workers she dare not demobilise her armies, or political troubleand possibly revolution mayi corrrq hom<* with her soldiers. Now the Allies, with the United States of their number, noi to mention also many small neutra' countries, control so large a proportion of the -world's shipping and natural resources that thev have their finger on Germany's windpipe. The German Government knows what measures it "would adopt if it were in the same .position. That is why it has become a convert, to economic internationalism, to a ppljicy of "give and. take/' and let bygones be bygones." The "economic' ■blockade" which Germany wants to e? cape is not a "Blockade maintained by naval force, but one in which supplies are not to bo purchased in Miffic.ienl quantities, owing to their having bcci diverted elsewhere t° meet the needs of the Allies, to repair the lands Germany has ravaged, and. to fulfil the cs sential requirements of neutrals. Thr Germans arefnot the only people who wil. bo fanfished for supplies after the war, and they realise that unless ai rangements are specifically included n tho terms of peahe the -Allies will cer tain!yi not allow Germany any share in the supplies they control until Belgium, [ Serbia, anqt - (Poland fffe economically re-

instated, at»d tliey themselves Have taken all that they can use themselves to advantage. While sh e still has a grip f on the territories she has seized as a military robber Germany would like to strike a bargain to save her own economic position. Tho obvious lesson t<» be arawn from th'e situation is that the Allies should tighten *. and co-ojdinato their naval and economic control "by every means in their power, making ful< use of the help which can be given bv every one of the States, small as wett great, that has broken off relation with Germany. This would be a leagu* of nations, wielding in the economic, boycott a weapon for the punishment ©' aggressive, blood guilty enemies of th® puofif peace like Germany, and united for the co-operative task of restocking and revictualling the countries, belligerent and neutral, that have suffered through Germany/'* lust for worlddominion.