BRITAIN’S GREAT ECONOMIC STRENGTH

Southland Times, Issue 23931, 25 September 1939, Page 8

BRITAIN’S GREAT ECONOMIC STRENGTH

Germany’s Supplies Will Be

Interrupted

More than ever war today involves the complete mobilization of economic resources for military purpose. In this article in T e er aid, Melbourne, Professor D. B. Copland points out that Britain as great reserves on which to draw—reserves of industrial equipmen , raw materials, foodstuffs, finance, and the standard of living, and that these reserves will steadily tell in her favour in the long run.

For the past two years the great Powers have been spending from 20 to 25 per cent, of their national incomes on defence in all its phases. Even at the maximum effort in the Great War, the mechanization of the military services did not _ attain 1 the level at which it will start in the present war. The great European armies of today have in the aggregate something like 25,000 aeroplanes, 30,000 tanks, 50,000 guns and 200,000 machineguns. Thus they reached a position in peace time in which they had a mobile striking force far beyond the possibilities of the armies in 1918, when the war effort of most combatants had reached its maximum. In a war today the economic problem is one of maintaining, and perhaps even increasing the number and effectiveness of these highly mechanized weapons, and at the same time preserving normal industries and food supplies, so that the standard of living will not suffer too greatly. TESTS OF STRENGTH In these circumstances supremacy will pass into the hands of the Powers that are able to meet the following tests: — To adjust industrial organization quickly and effectively to the maximum output for war so that the losses of modern warfare can be quickly replaced. To maintain the heavy industries and the engineering industry at a maximum of efficiency. To secure an increasing supply of the necessary raw materials. To draw upon substantial reserves in “the standard of living” so that the maximum war effort can be reached and maintained without imposing too severe a strain on the morale of the people.

On these tests Great Britain even before her intense defence preparation of the past two years was in a strong position on the last three points. She will still be able to keep the sea routes open, thanks to the efficiency of the navy, and this means that she can draw upon the Dominion and colonies, the United States and othei - countries for raw materials and foodstuffs. 1 In the last war she had to overcome the submarine menace which threatened to interfere with supplies. With greatly improved methods of detecting submarines, and of destroying them, the menace will not be so threatening this time.

Great Britain still has enormous financial resources, and can mobilize her overseas investments to the extent of at least £1,000,000,000. She can, if necessary, secure supplies from the Dominions and possibly also from the United States on credits. Provided the sea routes are open and shipping services available,““ as they will be, there will be no insuperable problems of finance to prevent her from securing all the materials and food-stuffs required for a sustained military effort. Britain’s position in this respect will be much superior to that of Germany,

whose imports in 1937 amounted to 5,468,000,000 marks of which the following will be interrupted under war conditions:—

GERMANY’S IMPORTS Marks

British Empire 1,025,000,000 France and colonies 232,000,000 Spain and colonies 135,000,000 Portgual and' colonies 35,000,000 Poland and border States (half) 120,000,000 Turkey 98,000,000 Non-European States 1,316,000,000 2,961,000,000 Thus half of Germany’s imports will be subject to interruption. She may seek to make up some of the deficiency by arrangement with Russia, but in 1937 her imports from Russia were only 65,000,000 marks, about 1.5 per cent, of her total imports, and Russia will not readily give up materials required for her own military services. GERMANY’S HOME SUPPLIES Germany is short of domestic supplies of the following commodities:— P.C. of Normal requirements Oil 30 Iron Ore 28 Copper Ore 11 Bauxite 7 Zinc 48 Rubber 25 Cotton Nil She will continue to get imports, especially of iron from Sweden, and she has considerable stocks, but in the long run her position is precarious. STANDARD OF LIVING The British standard of living today is higher than before the last war, and considerably above the level of 1930, when the economic depression caused the greatest volume of unemployment in British history. >. German ecohomic policy, on account of the great emphasis upon armaments and domestic production of essential products at all costs, has proved. a severe tax on the standard of living which has remained very largely at the low levels of 1932. In peace time more than 40 per cent, of the national income was absorbed by the State for social services, armaments and the necessary services of Government. Germany begins a war. with fairly severe food rationing, and in fact has little reserve in her standard of living on which to draw. Great Britain, on the other hand, can still draw upon a substantial reserve in the standard of living, can divert men and resources to military effort under the strong influence of patriotism. This is a reserve that will tell heavily in favour of all the democracies in the long run. They are slow to subordinate the amenities of life to the pursuit of armaments, but, when roused, they are both willing and able to stint themselves in a grand effort to defend their liberties.