REPARATIONS BILL

Otago Daily Times, Issue 18197, 18 March 1921, Page 6

REPARATIONS BILL

EFFECT ON BRITISH TRADE. ACTS LIKE A BOOMERANG. ALL MARKETS DELL. GERMANS’ RETALIATORY >: MEASURES. Trees Association —By Telegraph—Copyright. >' LONDON, March 16. ' (Received March 18, at 1.15 a.m.) The optimism resulting from the recovery of trade received a decided sethack from the early effects of the Reparations Bill. All markets are dull, and the iron industry is especially lifeless. Undoubtedly the Bill’s first effect -was \ Ibobmerang-like smack to general trade. Protests are reaching the Government froia merchants throughout the country. Tlleir , arguments are that the German Government would never co-operate in paying 50 per cent. Secondly, it is bound to result in increased prices rebounding on the purchaser. Thirdly, it would drive Germany to seek supplies from her English rivals. The Labour leaders, whilst admitting difficulty in framing ah alternative scheme to make Germany pay, roundly condemned the Prime Minister’s proposals as sure to result in a heavy increase of unemployment. Germany’s intention to evade payment is already manifest. Amongst the newest devices disclosed is an intimation which was sent to British merchants from Germany that 50 per cent, must be added to the prices quoted. Other communications peremptorily rupture business deals. Meanwhile Mr Austen Chamberlain urges patience to see how his scheme works, declaring that the Treasury is confident jthat payments can be collected on 40 per cent; of Germany’s export trade. The Leipzig Fair, which has already reestablished fls pre-eminence amongst European commercial men, has been brought to a sudden stop owing to the German refusal to ship goods to Allied Countries unless full value is previously paid. Another instance of evasion was quoted by Mr Asquith in the House of Commons. He said that English booksellers had been notified that no further supplies would be shipped unless large accounts were opened in Germany. Yorkshire wool merchants are dismayed, foreseeing that the accentuation of the slump will severely affect textiles. Belgium expects a diversion of trade from Antwerp, whilst Holland has emphatically protested, fearing the established Allied officers along the German frontier will deflect trade from Amsterdam. The Times says that the scheme thrusts a stick into the complicated mechanism of commerce, and manufacturers, warehousemen, merchants, and banks are eyeing it askance. The opinion is that the scheme at worst will bring a cessation of German imports, and at best will so hamper imports that the volume will be reduced and jirices raised.—A. and N.Z. Cable.