NOTES AND COMMENTS

New Zealand Herald, Volume LXXI, Issue 21853, 16 July 1934, Page 8

NOTES AND COMMENTS

PEOPLE'S SAVINGS ' As Lord Lothian lias explained, says tlie Times, *fche total savings of the small investors in this country now amount to two and a-half thousand millions sterling, of which nearly half are invested in Governmentally controlled institutions. This sum represents an enormous increase over the pre-war figure. Before the war the total sums held by the Post Office Savings Bank and the Trustee Savings Banks amounted only to £285,000.000. To-day, thanks largely to the growing popularity of the National Savings Certificates, the total funds hold in trust by the National Savings movement, with its 34,000 voluntary savings associations, have nearly reached £1,120,000,000. This great growth of small savings represents a social transformation, amounting almost to a revolution, which both for economic and for political reasons is greatly to be welcomed The changes in the distribution of the national income brought about during the last twenty years have made industry much more dependent for its supply of capital than it ever was before upon the thrift of the small investor. Nor was Lord Lothian guilty of exaggeration when he poiuted out that the development of saving is in fact the greatest bulwark of democracy against the twin evils of Communism and dictatorship. Thrift is essential to the maintenance of that spirit of self-respect and sturdy independence upon which the whole system of self-government is based. It is the surest safeguard against the " proletarianisation " which is the characteristic of the servile State.

"ECONOMIC PRESSURE" In a speech upon the disarmament problem, Sir John Simon said it was absolutely no use talking about economic pressure unless they were going to make certain that it was going to be effective. So far as the principal countries of Europe were concerned, they could not, as a matter of fact, make a system effective unless the United States of America actively co-operated. All in Britain acknowledged with every possible gratitude the contributions which the United States was able to make towards the improvement of international affairs. The United States was, in fact, one of the principal authors of the Covenant, and, of course, it was a matter of great r.egret to the rest of them that when the time came the United States was not prepared to join the League. But it was not a matter for Britain to reproach anybody with. It merely was to be observed as a fact, but notwithstanding that, the United States had constantly made the most valuable contributions towards the work which the League of Nations was trying to do. There was no good them pretending not to observe the limitations within which the United States was likely to act. In the course of . the discussions on the British Draft Convention at 'Geneva, the British Government tried to put into the Articles what was called the Consultative Pact, to provide that if there were a threat of q, breach of the Kellogg Pact there should be a consultation between the signatories, and that action should then be discussed and decided upon, and they would endeavour to act together. It was responsible for the final form in which the Articles were drafted. He drafted them to Mr. Stimson's Declaration before his eyes, because his object was to present on behalf of the British Government something which, as far as he could see, was exactly in the form most likely to secure American support. When the matter came to be discussed the American representative, Mr. Norman Davis, made a very careful declaration. He said:—" We are willing to consult with other States in ease of a threat to peace with a viewto averting conflict. Further than that, in the event that the States in conference determine that a State has .been guilty of a breach of the peace in violation of its international obligations and take measures against the violator, then, if we concur in the judgment rendered as to the responsible and guilty party, we will refrain from any action tending to defeat such collective effort which the States may thus make to restore peace." Nothing could be clearer than that.

EMPIRE TRADE POLICY Speaking at Ottawa Mr. Stanley Bruce said that although the economic nationalism with which the world was now obsessed would burn itself out in time, the British nations must take stock of their position and frame their policies for the interim period. It was obvious, he said, that the Dominions would find their most profitable economic association within the British Commonwealth group. Agricultural countries, such as Canada and Australia still primarily were, must find their best economic alliance with an industrial country needing foodstuffs. The United Kingdom offered by far the most receptive market for these, asi the other great industrial countries were committed to agricultural protection. For Dominion exports of beef and mutton there was no other export market than Great Britain, which was also the largest available market for wheat and wool. But the fundamental condition of a successful economic alliance was that each member should have the prosperity of the others at heart. Ho thought that the Ottawa Conference had finally made the British Government and people realise that Dominions like Canada and Australia were firmly determined to develop their secondary industries, but it had also laid down principles of sanity and wisdom about the development of such secondary industries. Mr. Bruce declared that he did not share the apprehensions -felt in many quarters in the Dominions about the consequences of the new British policies for the revival of agriculture. He was convinced that there were very definite limitations to such policies because, first, Great Britain was still dependent 011 her export trade for the sustenance of large masses of her population and could not afford to raise the costs of living and production beyond a certain height; second, because Great Britain co ild not afford to destroy the purchasing power of the agricultural communities oversea who were her good customers; and, third, because she could not expect these communities to' pay their debts or absorb British immigrants if thev could not sell their products profitably. His considered view was that the rehabilitation of British agriculture was a sound policy which, if successful, would contribute, to the well-boine both of Great Britain and of the whole British Commonwealth. The Dominions must realise also that they were not the only customers of Great Britain and that Great Britain must consider her trade with foreign countries.