ECONOMIC NATIONALISM

New Zealand Herald, Volume LXXI, Issue 21937, 22 October 1934, Page 8

ECONOMIC NATIONALISM

When acknowledging the freedom of Dundee, General Smuts made some observations about the evils that economic nationalism must breed. Throughout the world the utterances of this great man command attention, but it is too much to hope that more than a few countries are yet ready to listen to the voice of reason in regard to trade policy. . Some who were belligerents in the war continue to regard their frontiers as an economic, front which, to use the imagery of 'General Smuts, they protect with barbed wire entanglements. They are encircled with a no-man's land. This perhaps was an inevitable consequence of the war. General Smuts envisaged something of the sort in a review of the general situation which he made on behalf of the War Cabinet in 1917. Other countries, which were not belligerents, have been swept by influencfes similar in origin into trading policies of the same order. When once committed to extreme protective measures a Government finds it very difficult indeed to modify its methods, much less extricate itself from a course of action that is clearly a losing one in the long run. Britain is the country most advantageously placed for making with others trade, agreements that are mutually acceptable, seeing that the tariff system in Britain is new and not of a cast-iron brand. Yet there is plenty of evidence that the political machine is coming more and more under the control of sectional indus trial power. It is manufacturing economic nationalism within the Empire. But while New Zealand and Australia may regard the tendency with dread they must acknowledge the fact that they have practised the same thing between themselves. The scope has been narrow but the motives have been precisely the. same. Australia was the chief offender. The Dominion followed with reprisals. For years it has been impossible to send a bag of potatoes across the Tasman except as ship's stores, even though opportunities have occurred for profitable trade. One exists in Sydney at the present moment, but the old political palaver goes on. Though the question has been threshed out a score of times. New Zealand Ministers are invited to continue the farce, and Mr. Coates and Mr.. Masters may go to Australia. The purpose Of their visit would not be limited to trade matters, but they .should realise that so far as trade is concerned the people of both countries are losing all patience with the failure of Ministers to come to finality.