NOTES AND COMMENTS.

New Zealand Herald, Volume LIX, Issue 18079, 2 May 1922, Page 6

NOTES AND COMMENTS.

THE DOMINIONS AND EGYPT.

Ono of the most striking incidents in connection with tho Britisli Government's declaration of Egypt's independence is that in addition to tho customary statements, in documents and speeches, for tho information of tho House of Commons, Mr. Lloyd George sent a telegram to all tho Dominion Governments setting forth tho essontial features of' the now policy. This message contained a forcible enunciation of the kind of Monroe doctrine that has been proclaimed in relation to Egypt. ''In calling attention/' ho says, "to tlioso special relations a» defined in tho declaration recognising Egypt's independence, wo propose to declare that wo will not admit them to bo questioned or discussed by any other Power; that wo will regard as an unfriendly act any attempt at interference in tho affairs of Egypt by another Power; and that wo will consider any aggression against tho territory of Egypt as an act to bo repelled by all tho moans at our command." Tho London Times observed that this highly important letter is in itself a new fact in tho development of our Imperial relations. It indicates clearly, at any rato. that tho special Britisli relations with Egypt are tho affair not of Great Britain alono, but of the wholo British Commonwealth 'of Nations. Thus far the scope of the Egyptian problem is broadened. EVILS OF OVER-TAXATION. Tho view that tho present scalo of taxation in Britain hag exceeded tho nation's taxable capacity, has been endorsed on several occasions by Mr. R. McKenna, chairman of the London Joint City and Midland Bank. Discussing the matter hecentlv he said that if taxation continues so hiffh as to give only a very small return for additional effort and for tho risk of additional capital, it will become a matter of genera] occurrence that tho effort will not bo mado and tho capital will not bo risked. Looked at from tho point of view of national wealth and prosperity, in which wo al! have an interest, it is bad policy to deprive business men of the stimulus of a reasonable return for their labours. But tho question is not merely ono of tho discouragement of effort. We know that if business is to expand and prosper continuous additions must be mado to tho capital employed. A growing business—and at every period it is upon the growing business that tho progress of tho future depends—is one in which a largo part of the profits each year aro saved and put back into the concorn. By this method tho energetic and capable young man slowly acquires tho additional capital ho needs for development. If now tho whole or a largo part of his savings is absorbed each'year in taxes ho is deprived of tho means cf enlarging his business. New plant cannot bo acquired ; additional stock cannot be bought; growth becomes impossible. Everyono is agreed that, taxation of the poor on such a scale as to doprive them of the means of obtaining tho necessaries of life is morally wrong. But it is not generally accepted that excessive taxation of the rich is economically wrong. Most rich men do not spend the whole of their income on their own consumption. Some part, and often a very considerable part, 18 saved. and these savings are lent as industrial and commercial capital. A high super-tax in the case of tho rich i* largely a tax upon savings, and tho money taken by the State is withdrawn from productive use and spent upon consumption. In a healthy condition of r. State no more should bo raised in taxation than will leave an amount available for capital development sufficient to meet all tho reeds of business.

KING EDWARD AND THE KAISER. The monument which has been erected at Biarritz to the memory of King Edward VII. was unveiled there recently by Lord Hardinge, British Ambassador in Paris. In the course of his speech, he said it was King Edward and tho British Government who instructed him in 1908 to point out to the Kaiser how great was the anxiety felt in England regarding the works of the Kiel Canal, which were threatening England's tranquillity, and could only lead to deplorable competition in naval construction. Lord Hardinge pro., coeded: "Tho Kaiser was furious at what 1 told him in obedience to instructions, and disavowed any hostile intentions, stating that it was he that directed tho foreign policy of Germany, and that he would refuse to consider for an instant the idea of war with England- Finally ho refused to modify the German naval programme in any way It is hardly necessary to state that King Ldward was profoundly dissatisfied with this refusal, which only confirmed his,views as to the real intontion of tho Kaiser. The Geiman argument has always been that Germany was forced into the war by tho so-called policy of encirclement that is attributed to King Edward. Ihis theory is absolutely void of foundation for King Edward hated war and wished to be at peaco with all his neighbours. The title he loved and so well des.erved was Edward the Peacemaker. Unhappily the reign of this wise, far-seeing Sovereign was much too short, for the full results of his political sagacity to be achieved."

THE FUNCTIONS OF TRADE UNIONS

One of the encouraging sigms of the times is that labour leaders aro, beginning to think and investigate, and among the boldest of these is Mr. W. A. Appleton, who, in the course of a paper read before the Royal Society of Arts •dealing with " The Proper Functions of Trade Unions," reaffirmed his disbelief in the sympathetic strike. It is one thing, ho points out, to strike against a bad employer—and even a strike against a good one for the purpose of coprcing a bad employer may, ho says, bo condoned as permissible tactics —but a general strike alienates public opinion, which in any free country is the decisive factor in any serious industrial dispute. In Mr. Appleton's view the proper functions of trade unions embrace every problem connected with, or arising out of, employment and unemployment, and out of trade and commerce, so far as affect employment. Among these problems are those af'ecting wages, hours, conditions under which employment is pro/ided, safeguards again&t industrial disease and accident compensation where disease, or accident resiults, and provision against unemployment. With regard to he feels that though this reward is sometimes inadequate, yet the monetary return does not represent tho whole of the reward. Like Kipling's hero,- McAndrews, ho finds an important part of the return in tho consciousness of work well done.

CANADIAN RAILWAY LOSSES.

Some recent remarks by Mr. J. L. Payne, formerly statistical expert to tho Department of Hallways and Canals in Canada, on the financial position of the railways owned by the Canadian Government, are interesting. He stated that Canada's experiment in Government control and management is costing tho Dominion approximately 108",000,000dol. annually, and the total cost to tho Canadian people during the last aeven years has been 763,637,214d01., with no-, thing to indicate any reduction of this burden. Last year, according to tho official figures, the net deficit on the Government railways of Canada was 70,331,735d01., and had the accounts been made up on tho samo lines as thoso of privately-owned railways the deficit would be shown to be nearly twice that sum. There was no doubt, said Mr. Payne, that a general expectation existed that tho railways would be strengthened by being taken over by the Government and that tho annual deficit would bo reduced. Yet tho truth was that the railway situation had grown worse; for the latest available official figures showed that the deficit in 1918 amounted to 27,769.577d01.; in 1919 it was 47,993,312d01.; and in 1920 (ho loss amounted to 70,331,735d01. He added that the moneys advanced to the Canadian Northern wero sufficient to construct 10 or 12 Canadian Pacifies.