EMPIRE PREFERENCE

Otago Daily Times, Issue 17104, 8 September 1917, Page 11

EMPIRE PREFERENCE

» METHODS OF CONSOLIDATION. A BATCH OF SUGGESTIONS. (Fbom Otra Own Cobuespondent.) LONDON, June 12. The motion which Mr Massey brought before the Imperial Conference for the extension of preference within _tho Empire was finally passed in a form which did not ftato the specific method by which preference was to bo given. In most discussions of tho question it is taken for granted that the Customs will be tho chief moans, but in view of the very strong division of feeling on tariff reform in tho Old Country, the conference hesitated to prescribe it, preforring to leave it to Great Britain to devise ; its own scheme for meeting the dominions. In order to obtain some suggestions as to alternate modes of preference, I approached a number of gentlemen interested in tho relations between Great Britain and New Zealand, with the following result. A BROAD VIEW. Mr I, W. Raymond, who has studied Imperial matters for 15 years, says:—"lmperial statesmen will have- sufficient difficulty in fusing Home and oversea dominion views as regards tho varied interests at stake without encumbering their deliberations by endeavouring to do something special for bur Allies, who practically represent, eightleuths of the -world's population. Such a course would not only be fraught with enormous difficulties and dangers, but would appear to mo to bo beyond the wit of man to carry out. It is necessary to banish from mind tha deep-rooted disgust wo feel at tho brutal and inhuman methods practised by the Germans. Our endeavour must be

to look ahead five, seven, or ten years, and picture what will bo our state of mind towards our enemies then. Our race is not a spiteful, revengeful one, it rather errs by being too big hearted and too chivalrous towards competitors. Had it not been for the Drutality practised by the Huns, I question very, much whether the majority of the people here would have yet realised the dangers with "which the future was menaced. In my opinion it is folly to allow feelings to override judgment when framing a worldwide policy. The wisest course is to decide as near as may bo humanly possible what the normal conditions are likely to be in the near future, and then frame our polioy to meet that situation. At the Peace Tribunal Great Britain's representatrvee must be men who have the absolute confidence of tho nation—men who are far-seeing, sagacious, and, above all, firm with regard to essentials. They must demand full and complete reparation for every act of Hnnnism. Having secured this, I _ feel convinced that no proposal to specifically and specially handicap the Germans will meet with general acceptance by broad-minded and practical statesmen. Amongst our Allies, to -whom wo are told preference is to be given, are Japan, tho United States of America, and Russia. The two former, beyond question our greatest competitors, two that must from this time forward challenge our very national existence. Take Japan, she can produce at a 50 per cent, lower cost than ourselves. The U.S.A. is beyond question a country with natural advantages far outweighing those of any other Sitate. It has accumulated wealth and a power of wealth-pro-duction that is prodigious. Russia is only in its swaddling clothes, but what enormous potentialities does it not possess? These are three of our Allies to which it is seriously proposed to give special treatment as against Turkey, Bulgaria, Austria, and Germany. Another view that strikes me as worth considering is this: Is it thinkable having obtained from a debtor a compromise for the payment of so much in the pound that the creditor should immediately proceed out of resentment to strangle the debtor? A far more practical scheme is rigidly to enforce the provisions of the Trade -Marks Act, and extend it so as to provide that German goods be specially and distinctively marked. Consumers have then full opportunity of giving practical expression to their feelings. Our people must get rid of delusions in regard to our Allies. Why imagine that there is any occasion for the British race to play the part of the philanthropist? This race has given her bravest and best from all parts of her world-wide Empire. Her financial and industrial • resources, her armies, her navy have all operated where they have been of the greatest service. In my judgment the issue that most concerns us is how to bring dominion, Indian, and Home interests into line on fisoal -and other questions, so as to establish on inter-Empire exchange of commodities on the basis of the minimum cost of production consistent ■with the highest standard of living possible to the workers, thus enabling our. race to build up and! strengthen our respective countries. We have not yet reached an approximate idea as to how this is to ba achieved. The inclusion of India in any 1 echemo of inter-Empire preference creates enormous difficulties. Questions of trade and commerce cannot be settled merely on the basis of a preferential trade between the various component parts of the Empire; protection of native industries must, be established by each national unit so es to encourage them in every way. I specially have in mind the Agrarian interests of Great Britain and) Ireland. Those on tho land cannot live unless their produce be protected. .It is through the protection that Great Britain can extend preference to her oversea Empire on a practical basis, and by no other. The fiscal laws are undoubtedly those most appropriate for adjusting the differences between natural iesources and artificial needs. Subsidies to shipping and! other forms of transport find favour in certain quarters. This assistance may be useful to meet difficult situatioas not too easily amenable to fiscal regulations. The suggestion of bounties I view as most dangerous. It is, after all, a subterfuge, a sop to the disciples of Cobdenism, tWose who will not surrender the shibboleths of free-trade and who declineto crime into.line with the rest of the civilised world. Bounties aro in my opinion so unjustifiable that I do not approve of such being offered even to bolster up in thie country the production of sugar, and of all industries this one most appeals for special treatment. Yet climatic conditions are so unsuitable, tho soil so unresponsive, labour difficulties, and the cost of labour so great, that I am satisfied that the granting of a bounty would be wholly unjustifiable. Tho Empire's resources are so varied and so all sufficient that there is no justification for the introduction of bounties." PRACTICAL SUGGESTION'..-, Mr George Goodsir, in a memorandum prepared by Messrs W. Weddel and Co. for the members of the War Conference:— ■' It ie necessary co interest the Home Government to elicit from them somo definite guarantee _ against the most favoured treatment, active or passive, being accorded to foreign producers, also a definito declaration in favour of encouraging Empire production. The following methods aro sugg«ted: (a) A governmental guarantee of minimum prices operative during the!same period as a guarantee. promised to British farmers for grain; (b) army orders to be given to British dominions, to their full capacity, for a series of years, supplemented by orders given to British-owned establishments in foreign countries, and, only in the last resort, to purely foreign concern.,; (c) -oyorseas governments to foster their' individual industries in reliance upon the Home Government sympatheticallv supporting their efforts. Tho various" dominion governments must take steps: (1) To counteract the influence of foreign combinations in their own country, and (2) to work independently for so increasing their country's output that the Motherland may not have to rely at all upon foreign sources. There arc ono or two developments which might well bo fostered either by governmental aid or by combined action among shippers in the various dominions—e.g. {i) systemntised improvement in the quality of stock in accordance with the needs of the British and other Etrropean markets; (b) combination between producers and shippers, enabling long contracts to be entered into; (c) standardised grading; (d) regularity of sailings; (e) concentration in soiling; (f) pooling of shipping, financing, and insuring facilities. If the war has enabled commercial men to see anything clearly, it has enabled them to realise beyond the possibility of being mistaken that individual'sm is not in future likely to bo so successful as collectivism in tho handling of big trndes. Collectivism naturally facilitates the adoption of recognised standards of quality, and admits of strong and' organised control, not only of buying and selling operations, but of subordinate, yet nevertheless important, matters, such as freight, insurance, banking, and other commercial arrangements. Thero ia, however, this difficulty about putting into operation any collective working in Australia or New Zealand— namely, that members of the American group have already gained a footing in both countries, anrl it Li inconceivable'that t!;pse would work smoothly in combination vith British firms, when tho main object of the latter would bo to eliminate all f'ire : gii influence from the trade with the United Kingdom. Their presence in Austniia and New Zealand is a source of weak-;-<-PS in any effort to establish the trade on ■Empire linos by private enterprise. The problems raised thereby can only be dealt with by each oversea State separately; but

no satisfactory Btart can bo made in that direction, until tho principles is definitely adopted by Groat Britain, that foreign trading in tho food of hoi- people must bo eliminated in favour of British trading." EMPIRE SETTLEMENT. Major W. A, Chapplo, R.A.M.C., M.P.: "If tho dominions ' count their blessings' bestowed by the bountiful hand of Britain, I think they will see that the happy blend of sentiment and gratitude that has sent unstintingly to the bat-tlo fronts of Europeand Asia, to overthrow tho Empire's enemies, sorao of the finest men that ever went forth, can be trusted to do the lesser service- of giving a preference to tho Empire's goods. It is difficult for the dominions to ask for more than tho United Kingdom has already given thorn with a lavish hand —freo and untrammelled markets for all their goods —a mighty navy to polico their ocean routes—si lips to carry their produce —che.ip and iib ndant monoy to develop their resources—tho flower of the land to till their soil and work their factories —autonomous government as freo as the air they breathe! nir dominions owe all they possess to this policy—new in tho history of ..he world, wise as the words of Solomon, beneficent as the morning dew, far-reaching as thr> poles. Empire sentiment has strengthened with tho war. It will weaken perhaps with time. But tho counter-sentiment of hatred o£ our oncmies, his goods and all his ways, will survive this generation? . In tho meantime I tliink wo can trust tho operation of force and counter-force for a waiting, studying, cogitating period after tho war. An Empire trade mark will help identification."

SUBSIDIES AND FREIGHT CONTROL

Mr Gilbert Anderson (Messrs G. Anderson and Co.): "Hitherto it has boon considered that tho way to deal with reciprocal trading was by way of tariffs, and it has been on that basis that the various dominions have negotiated trade relations. The proposals of the British .Imperial Conference of , Commerce followed those of the London Chamber of Commerce, and were: (a) Preferential reciprocal trading relations between all parts of tho British Empire; (b) reciprocal trading relations between tho British Empire and tho allied countries. Enemy countries were to bo dealt with on a high basis, according to circumstances. That some plan of reciprocal trade for the Empire was necessary was the expressed opinion of all sections, if tho Empiro was to be rebuilt after the war and enemy and foreign penetration was effectually checked. The Imperial Conference- would seem to have discarded the plain, obvious, open, and direct method of meeting these by way of tariff for somo other plan which has eiot been disclosed. If favourable neatment is to be given to the dominions apart from tariff, this can only bo done by special subsidies and control of freights for Imperial British goods through British firms, extended banking facilities, and the eamc terms for trading as wero granted to foreign firms by foreign banks; taxation of all foreign firms, or their trading rights, on a basis that is not lower than, paid by British firms; tho control of freight for soma timp after tho war, both as to facilitate' for regular shipment which is so essential to the producer, and at reasonably low rates, is ono which may have to bo taken in hand by tho various Governments, especially in faco of the recent huge combinations of shipping. This may bo only possible by way of special rebates for Empire goods within the Empire. British trade in the hands of British traders should be freed of Government control occasioned by tho war rs quickly as possible; all double taxation within the Empire should bo ■withdrawn. All Government loans for the development of the Empiro production, railways, water conservation, harbours, forestation. etc., should bo placed and, if necessary, underwritten by tho Imperial Government, concentrating the capital of the Empire, and thus freeing local ca.pital from manufacturing and loe.il enterprise and settlement. And the same' course should be adopted with tho control and partial cost of emigration, with the consent and co-operation of tho different dominions, so as to overcome the immobility of labour and to promote settlement under tho flag for further development of all parts of tho Empire." MODERATE FREIGHT RATES. Mr A. D. Henderson (Now Zealand Farmers' Co-operative Association) -. " Thero seem to me to be, several ways in which Great Britain migh't give favourable treatment and render assistance to New Zealand in competing with the produce- -of countries outsido the Empire. It might in the firrt place assist towards the provision, of ample facilities for bringing tho produce of tho dominion to these markets at moderate rates of freight. Much good would result, also, from legislation compelling effective marking of all products so that consumers might see plainly which were produced within the Empire, and which were not. The Government could render great service by propaganda work throughout the country

with tho object of impressing upon tho public the importance of buying goods produced within the Empire in preference to any other, and thereby give that encouragtment. to producers which would result in the achievement of the great end aimed at—that of making tho Empire independent of outside sources of supply. People will now appreciate the great importance of doing anything that would assist towards such a desirable etate of things. JThe British Government will no doubt sec that only Empire produce is bought fox all the requirements of its various departments, and this would be an easy means.of giving the colonies preference of substantial value. In order to secure to the producers and the consumers the full 'benefit of any stops that may be taken to carry out the wishes of tho conference, it would be necessary for tho Governments concerned to afford protection against the operations of any combination of traders, especially such as that of tho powerful American meat companies.'-' THE CHIEF STEP. A leading ship-ownsr.—"Great Britain has always shown preference to New Zealand in regard to tho latter's wool, meat, dairy produce, etff. Great Britain has always been New Zealand's largest and most reliable market all round and taken as a whole. Speaking generally, each part of tho Empiro can most easily and effectively give preference to tho other in tho sale and purehaso of all commoditiee. If tho individual will only buy and use what is produced and manufactured within the Empire tho chief step will bo taken towards consolidation. But this is an individual rather than a Government matter, and to be effective must bo reciprocal and comprehentsive. There are, of course, a few things in common use that the Empire does not produce, but these are mostly luxuries and do not really compote with* . Imperial products or manufactures. Tho dumping of cheap foreign articles to encourage the industry, or work up a trade, and the ready purchase of them by tho thoughtless, in-

different user have been tho isourco of foreign trade expansion, and a heavy drag against the competing Imperial producer." OTHER OPINIONS. Sir E. Montagu Nelson (C. C. and D. C). —"I must confess that I am unable to see how any preference can bo shown for Jfcvy Zealand if you are .to exclude all mention of Customs and tariffs. My idea is, and always has been, that thero should bo a small duty on foreign produce and that New Zealand produce should be- admitted {reo to all parts of tho Empiro."

Mr Bejj Tillett. g-enoral secretary, Dock Workers' Union. —"I would- advocate - that thp Trade Committee of the Imperial Committee could co-aperato to organise the trade side of New Zealand and dominions, or couid bo agents for the dominions, or work m association with the dominion agfnts." Mt A. E. Russell. —"I cannot suggest any means of showing preference to the colonies by Great Britain other than by a preferential tariff, except by a provision that, stores to be ustxl by the public services should be of colonial origin. This would amount, in tho end, to a bounty on colonial produce, which in my opinion is unpractic-