The New Zealand Times. TUESDAY, AUGUST 12, 1919. PESSIMISTIC FEARS

New Zealand Times, Volume XLIV, Issue 10355, 12 August 1919, Page 4

The New Zealand Times. TUESDAY, AUGUST 12, 1919. PESSIMISTIC FEARS

The critic who summarised Mr Chamberlain's speech in the Commons on tho Budget situation chose to characterise that utterance as pessimistic. And his next sentence seemed to justify that criticism very fully, for it was a warning that if the country continued spending at the present rate it would lead to national bankruptcy. On recovering from the disconcerting effect of this startling warning, one asks first, naturally, what can be the expenditure to which this warning of the Chancellor of the Exchequer refers ? Is it the expenditure set forth in his own Budget? If so, then the warning is the gravest condemnation by the Chancellor of his own Budget. It shows that, according to his own statement, his own Budget has committed the country to a ruinous rate of expenditure. If we consider his remarks about the vast aggregate already Authorised of the war pensions, and the necessity which the Chancellor finds very unfortunate, for maintaining the food control, this condemnation becomes considerably stronger. Because it appears to convict the Chancellor of a desire to cut down tho war pensions and a. wish to sell great accumulations of supplies at profiteering rates to steady the Budget. These are reasons for believing that Mr Chamberlain’s warning was not (based on the expenditure set forth in the Budget. Tho expenditure referred to is, we take.it, the private expenditure the lavishness of which is referred to in the nows of the day with increasing frequency. It is now well established that vast sums have been made during tho war in a vast variety of ways by profiteers of every degree. ‘ The effect of such expenditure is to promote tho supply of luxuries and-discourage the production of tho useful articles which ought to furnish the hulk of the nation’s exports. It is an expenditure wasteful in tho extreme, and a spur at tho same time to drive thte industry of the nation into unproductive grooves. Mr Chamberlain, after all, only said that if the public do not economise by loading frugal lives, tho country will bo ruined. His philosophy is “Less waste and more exports.” As we write, however, a cable message announces that as the result of Mr Chamberlain’s disclosures, there.is “a widespread protest against tho Government expenditure by members of the House of Commons.” It seems probable, therefore, that the Chancellor’s warning is aimed at the expenditure all round, both that which he has been forced to announce in tho Budget (a remarkable thing in any Budget) and that which has been denounced outside by many including the King, who made a remarkable statement recently on the subject. Mr Chamberlain’s philosophy of “Less waste and more exports” was, however, part of his warning to the country.

The philosophy helps other things that aro in the air to force 'reflection.

Just now the coal crisis in Britain has |caused a lament of a kind not heard jin Britain for over a century. It is .j a lament for the possible loss of Bri- ’ j tain's commercial supremacy. The - j mourners declare that as the commerI cial supremacy is based on cheap coal, • tho rise in the price of coal gives the competitors of Britain tho advantage. Certainly, American coal is cheaper, because it is easier hewn, and under bettor conditions of housing and living. Tins simply means that the svpre|macy of Britain has been built upon tho sweated industry of tho miners, because the first attempt to improve tho mining conditions to tho American level has: struck a shrewd blow at Bri tish supremacy. As the coal situation is reflected in the difference of between four and five pounds in tho price of British and American iron, the position is serious. It is not improved by the prospect of the marine carrying trade. Before the war, Britain was the main world-carrier. To-day America is a serious rival, having now as many ships in tho busiuess, and is building them at faster rates, and running them under better conditions. These are considerations affecting the exports. Suppose tho waste is eliminated, according to the Chamberlain warning, the exports will still have to face dearer coal and tho superior facilities of rival transport. In this connection, it is urged sometiiries that the British supremacy in maritime transport ; s due to the handicap imposed on A*~ vican rivalry by tho better living i.. aditions secured for American sailofs by American laws. But >f supremacy can only be held by “sweating” the seamen, the supremacy is very properly doomed. Probably the whole of this argu ment, founded on cheaper American coal and better American navigation laws, is as rotten as the pacific and pro-German propaganda with which it has been associated for some considerable time. We mean, of course, that there is nothing to prevent the betterment of mining and seafaring conditions on the British side, and when such betterment is effected there will be no handicap to .face. The work of betterment is now in hand. There are differences, and there are misunderstandings, but the pressure of rival superiorities is virtually a guarantee that they will 'be overcome, “There is nothing,” said Mr Chamberlain, in conclusion, “in the position beyond the nation’s power, if it tackled tho prob Icm with tho same resolution as displayed in the war.” Here wo have the key to the situation; strength, sense, public spirit, gathered together the nation for a mighty effort to win the war., A similar effort is wanted to save the nation's soul' in peace. The only thing .wanting .is the national realisation of the danger that threatens. It is impossible to believe that the- people who realised the war as they did will fail to realise the dangers of the peace that has followed the war. It is a problem of betterment of social conditions by improving conditions without increasing the cost of production and transport. That is the'essential problem. For its solution a better instrument is wanted than a Coalition Government, divided about social problems.