A COMING WAR.

New Zealand Times, Volume LXXI, Issue 4302, 11 March 1901, Page 4

A COMING WAR.

With the growth of trusts in America, syndicates in Germany and combinations in Great Britain, the real war of Hie future will he a conflict of international trade interests, for years the wealthy men of the United States have been arranging amalgamations of their businesses. Indeed, there is scarcely a “line” of American production that is not ruled by a trust. The Germans are following tho example pf the Americans and England, too, has her powerful cotton and other combinations. The latest development of note in the United i States is the formation of, gigantic steel trusts, and in Great Britain and Germany numbers 1 of industrial magnates have discovered that the only way in which competition from America can he met is by combining their forces. There is scarcely a manufacturing country in the world but wbat is adopting similar methods as the only way whereby the crushing effects of the American trust may he counteracted. Recently, in dealing with the question of Britain’s trade competitors, Lord Rosebery seemed to regard the war of commerce as being of greater importance and more to. be feared during the century just be. gun than any military warfare that could be imagined. Doubtless a great international struggle is pending. This war, however, is not to be fought with military battalions, but among manufacturing “rings.” In, looking at Germany and America, with then- vast, industrial organisms, one naturally concludes that they will be the keenest fighters for the world’s trade. The gigantic development of American industries has led her industrial leaders to make overtures for a, reciprocal tariff between the United States and the protected countries of Europe. These are- not likely to be entertained, and the conflict must be carried on on something like even terms with the British and German manufacturers. The alertness of the Americans, the incalculable natural resources of their country, their acuteness and their enterprise make them now formidable competitors to British trade; while the Germans, with their slow, square-headed persistency, their scientific methods and conquering spirit, are, in the opinion of Lord Rosebery, scarcely less redoubtable than the American cousin. Having regard to all the circumstances, it seems that the Yankee is far more dangerous to British trade than the Teuton. The enormous accumulations of money and tho utter disregard for it save as a means for making more and for acquiring power on the part of the millionaires are outstanding features in American character. The capitalistic monopolies of the United States arc regarded a-s the most important industrial phenomenon of modern times; and we have the dictum of no less an authority than Prof. R. Mayo Smith that “few trusts in that country are entirely evil and none are all good.” As combinations of workmen, called unions, are the result of a desire for protection against undue pressure from employers, and to prevent unnecessary competition among themselves for work, it naturally follows that the capitalists should seek to present a united front to the demands of labour organisations.

So far, however, capitalistic trusts and labour unions have not come into conflict. Indeed, the result of the creation of the trust has been to raise the wages of workmen by the concentration of energy, the saving of expense in production and the utilisation of by-products. The consumer secures some advantage by a reduction in the price of the commodity; hat there is a danger that by limiting the buyers of raw material the “trust” may become oppressive to producers by declaring only to purchase at- -' a low price. Of course there is likewise a temptation on the part of monopolistic companies to raise prices and plunder.

the consumer. The safeguard against the evil tendency of the trust lies, perhaps in ,i,ate supervision in the public and investors’ interests. But since trusts Trill have the effect of raising wages and reducing prices by cheapening production, it may be a- long time before State intervention will be uece.ssarv if at all. As “publicity” is the saving grace of most companies, so complete knowledge of the doings of capitalistic monopolies may enable society to retain »he.r benefits and escape their - evils. The growth of trusts and combines in the leading industrial nations in the world opens up another phase of the question which might afford a safety -vah e against “ syndicate ” oppression. As great military preparations have often proved preventive of war, so the rivany and competition of the " trusts ” in America, as is seen in latest developments, may bring about better commercial relations, and by mutual understandings prevent any great international .struggle for the world’s commerce. Whatever the development may be, it seems that the industrial world is passing with some rapidity m a course the end of which is wrapt in doubt and darkness. All that may be said is that the wars for more territory are practically at an end ; the wars ot the future will be trade conflicts tor the world’s markets.