Nelson Evening Mail TUESDAY, DECEMBER 6, 1938 GERMANY'S TRADE METHODS

Nelson Evening Mail, Volume LXXII, 6 December 1938, Page 6

Nelson Evening Mail TUESDAY, DECEMBER 6, 1938 GERMANY'S TRADE METHODS

IT will be seen that Germany’s uneconomic method of trading—the selling of goods abroad at cost prices, or less—has drawn a statement from the Secretary of the Department of Overseas Trade (Mr R. S. Hudson) who took up the Teuton challenge in no uncertain manner. Mr Hudson did not say what defensive methods the British Government will adopt to meet this menace to legitimate trading, but he indicated that so far as Great Britain is concerned “new methods will be introduced as

new situations arise,”* and that “the exact form of these methods is being considered by the British Government.” At the present time Germany's illegitimate methods of trade are being used in southern and south-eastern Europe, where the scope of British trade is not great, but it is pointed out that such methods may be extended to parts of Europe and of the world where Britain is vitally concerned, and therefore that British industry must be prepared to meet this new form of competition which is created by Germany’s attempt to obtain a stranglehold on trade with the countries concerned, by exporting goods at less than cost price. The British Government will not seek to counter the pernicious German methods by means of similar methods, but will use new methods the nature of which has not yet been disclosed. For instance, Great Britain’s trade with countries within the Empire, including the Dominions, is great and could be greatly increased. If, therefore, Great Britain’s trade with Germany were to suffer because of the necessity for combating that country’s pernicious methods of trade, the Old Country’s balance of trade could be adjusted by the exclusion of German trade from the nations of the British Commonwealth, and by the increase of their trade with Great Britain. The ideas which originated at the Ottawa Conference could be renewed and expanded, and loss which Great Britain might sustain through Germany’s uneconomic method of trading might be counteracted. Trade-within-the-Empire is not altogether an empty shibboleth, and if revived as a cry against j such trading methods as those j threatened by Germany, would ; more than adjust the Old Coun- j try’s volume of trade, and restore the level of her industrial prosperity. The slogan “Buy British” could be revived, and if translated into action would more than make up for any loss which British manufacturers might lose by Ger-: many’s method of capturing trade. Moreover, such a method of trade necessarily creates its own quietus. For how long can Germany continue to sell goods at uneconomic prices for political purposes? For how long will the German people be content to meet the cost of producing goods which for political purposes are to be sold without profit? Herr Hitler’s intrusion into the realm of economics seems likely to be disastrous, since the fixing of prices in accordance with his methods is contrary to the laws of economics, tends to enslave the workers, and promote discontent.