THE New Zealand Herald AND DAILY SOUTHERN CROSS SATURDAY, MARCH 10, 1928. ECONOMIC PEACE.

New Zealand Herald, Volume LXV, Issue 19892, 10 March 1928, Page 10

THE New Zealand Herald AND DAILY SOUTHERN CROSS SATURDAY, MARCH 10, 1928. ECONOMIC PEACE.

How far the League of Nations has moved toward establishing economic peace in the world is suggested by an item of news from Canada. It is intimated that the Canadian delegates to an economic conference summoned by the League have just laid their report before their Dominion's House of Commons. In the subjects traversed by the report there i 3 more than a hint that the day of universal fellowship in business may yet come. This may seem to some, habituated in a scheme of commerce marked by national barriers of various sorts, no more than an idle dream, and it must be con* ceded to the critics that there are complex problems obstructing the realisation of the dream. Yet considerable progress was made last year toward a wide acceptance of the idea. Her-e and there the old fashion of regarding trade as war still obtains, as in the minds of those Americans who lately have urged a costly naval programme on the ground that entry into foreign commerce necessarily induces international friction. This, it must be said, is out of step with what almost all the rest of the world is thinking. America perhaps finds it difficult to forget the failure of the conference on naval armaments, called at Geneva as a result of Mr. Coolidge's suggestion to the four other Powers who had joined with the United States in reaching the Washington agreement; but 1927 is not so memorable for that failure as for a very conspicuous success. It was the Geneva Economic Conference, to be set alongside the Locarno conversations as one of the two signal events, since the war, happening in the winning of the peace. The League has gathered about it many diverse enterprises of universal service, and among them is the expert standing committee dealing with economics and finance. Its years of arduous accomplishment are too easily recalled to need recital. What is now to the point is its quiet preparation of the way for a worldwide view of commerce as a bond between nations. It has sedulously studied, on a fully international basis, technical commercial questions of high importance ; and in this has performed a service quite as notable, though not so much advertised, as its financial work for Austria, for Hungary, for Danzig, for Estonia, and for Greek refugees. In particular it has painstakingly examined the possibility of abolishing the import and export prohibitions and restrictions that very seriously hamper trade in certain parts of Europe. Erom this beginning a wider task has been essayed. It was splendidly aided by what is generally known as the "Bankers' and Business Men's Manifesto," issued in 1926 and bearing the signature of the governors of more than a dozen of the dominant banks of Europe. This declared that "it is difficult to view without dismay the extent to which tariff barriers, special licences and prohibitions since the war have been allowed to interfere with international trade." The next move of moment was the Geneva Economic Conference, held last May, which was attended by about 200 delegates representing the Governments of 50 nations. This, the most authoritative body of experts ever met to discuss economic policies, put on record its considered opinidn that "the time has come to put an end to the increase of tariffs and to move in the opposite direction." The League Council reviewed the findings of this conference and approved them.- So did the Stockholm conference of the International Chamber of Commerce, composed of 800 representatative business men from many countries. There followed in October and November the gathering on which the Canadian delegates have now reported—the international diplomatic conference, called by the League " for the purpose of concluding a convention for the abolition of import and export prohibitions and restrictions." The principle was approved ; the practical difficulties were faced, especially those arising from existing private interests and international undertakings; and a draft convention was drawn up for the consideration of Governments.

To the principles laid down by the epoch-making conference in May there was given the cordial endorsement of Britain. Sir Hilton Young told the Assembly that Britain, providing the largest and freest market in the world, welcomed the resolutions in favour of greater liberty of trading, "for they show the path to be followed if war is to be avoided." In these discussions New Zealand has not directly participated, but it is to'be noted that our Parliament, in August of 1924, ratified an earlier convention relating to the simplification of customs formalities,- which was based on the principle "tha? the system of import and export prohiT & '. '

bitions and restrictions constitutes a serious impediment to the free development of international trade." This Dominion is thus committed to a sympathetic consideration of the new departure. It is one full of promise for international concord. It cuts athwart much that has long been taken for granted. That it entails modification of many existing practices, such as Imperial preference and sundry commercial treaties, is obvious. Nevertheless, it must be acknowledged that the long-prevalent idea of a self-sufficing national economy, enduring for reasons dictated by circumstances, ought to give way before the oncoming of changed conditions, and that chief in these changes is the mass method of production which needs a vast if not a world-wide market for its full efficiency and success. Trade barriers of various kinds may haveto persist yet awhile, for political and practical reasons, but there is a writing on the wall announcing that these reasons have been weighed by expert economic thought and been found wanting.