TRADING WITH THE ENEMY

Taranaki Herald, Volume LXIII, Issue 144854, 4 December 1915, Page 6

TRADING WITH THE ENEMY

OUR RELATIONS WITH GERMANY CONDITIONS OF TRADE DISCUSSED.. An interesting address on the subject of trading wuli the enemy was delivered at tno quarterly meeting of the Taranaki Chamber of Commerce on Friday night by the president (Mr. W. J. Penn). In opening ins address Mr. Penn said that the suggestion had been mane that it would add interest to the quarterly meetings of th chamber if at cadi mooting a paper wore read or an address given on some topical subject, to be followed by discussion and criticism.

"Tho subject 1 have chosen,' 1 proceeded Mr. Penn. "15 ‘Trading with the Enemy,' especially after the war. ] will confine myself to Germany, as the principal trader among the enemy nations, but my remarks will not apply solely to our Dominion, because it seems to mo that when tho war is over tho question will have to be dealt with from an Imperial standpoint. The war has brought the component parts of tho Empire into far closer touch and sympathy with each other titan ever they were, and 1 imagine that every effort will be made at an Imperial Conference to arrive at a common policy in regard to commercial dealings with other countries, more especially with onr present enemies. That is to say if tho United Kingdom decides to continue it* prohibition of trade with Ger- j many I hate, little doubt that the Do- | minions will agree to tall in line, or if ) the United Kingdom thinks lit to relax tho prohibition, while treating our present Allies as favoured nations, tho Dominions will probably adopt a similar atritudo, though varying perhaps in degree, of preference or penalty. "Trading with the enemy is prohibited by law to-day, Inn the prohibition is not altogether effective. for one can still buy German goods which may or may not. have been imported since the prohibition wins imposed. Some of these goods are branded ‘made in England,’ but are none the less German since they are made by German labour in factories owned wholly or m part by Germans, and it may he doubted whether the Imperial authorities have completely succeeded in preventing the profits from reaching Germany and being used for the prosecution cX the war against us. One, has but to keep one’s eyes open to see that quite a large trade is still being done in German goods in this country. If, then, it u so difficult to prevent trading with tho enemy while the war continues | and public resentment is at its height, how much more difficult will it be to prevent it when peace is declared ami Hie German people endeavour to reinstate themselves in our good graces. And just hero let me remain that I for one believe that there are Germans who do not pray daily 'God Strafe England’ but who lament ibe war as much as wo do, though they dare not lift | their voices against it. -Most of ns here j probably, ale acquainted with Germans ! lor whom «e have the highest respect.; lie that as it may, we shall have to de- j eide when the war is over U|miii what terms we ns a nation are going to live with the German nation. .My own feeling now, and that of moat British people, is that I have no wish to have any | dealings whatever with Germany atony time. 1 would bar trading with Germany for nil time in ray present frame of mind, hut 1 do not think that 1 am 1 in a proper frame of mind to make a j resolution binding mo indefinitely. And j that, 1 take it, is the position of the ■ nation generally. Eor that reason it; seems to me wrong to say, as some j people say, that wo must never trade 1 witn Germany again. A well-known | writer, Mr. Ambrose Pratt, has said: 1 ‘Germany is lighting the world to-day | with tiie' money she won by commerce | with her enemies—from ns, by selling us ; her goods. And it is certain that it we again permit her to grow rich at our expense by trading with us she will again ivy to accomplish our destruction.’ It | wo subscribe to the theory that she is fighting to-day with the money she made, by selling us her gnot'.t.. then we must also agree that G-- - -.1 y h.-; b.lying our goods has lie! v ■ 1:1 - o o ...d trie navy, the instrument t ..i: a 1. pr.-verl the'most powerful tueii on either ale in this war. The trade h.,s nee : mutual, with profit to both parties, though t.icre arc those who hold that it lias been one-sided because Britain has bought more from Germany than Germany has bought from her and lias had to pay the balance in gold, which gold has boon used to construct ships and guns and to train armies with which to fight us. This is not a sound contention, but let us accept it for tho sake, of argument, and assume that after the war the old relations nro resumed: that wo continue to buy from Germany more than wc soil to her and pay the difference in gold, it will only bn s‘o because it suits us best to pay in gold. , , , "But how will it help Germany to prepare for another wuir ? She cannot build ships and mould guns of gold. If, howevor, instead of gold she took steel plates from Sheffield, then we might be helping her to build up a great navy with which to dispute our supremacy of the seas, and at the same time wo should be reducing by so much one own capacity for building warships. It has been stated that Germany is accumulating vast stocks of the products of her factories with which she will flood tho world when the war is oyer, if permitted. and with the proceeds put m hand her military rehabilitation. I take leave to doubt that. During the. last six months the vast bulk of nor adult male population has been fully occupied in either fighting or providing aqd transporting supplies for the fight ing forces, so that it is impossible that her factories (except these manufacturing military supplies) have 'been working normally and accumulating stocks. Moreover, tire raw material required in industries —metals ,for instance—has been drawn upon to the utmost for wai purposes. Nor can 1 bclinvo that when jaeac© is restored German industries will

he able to resume on tho old scale or anything approaching it. There will be the ravages of war to bo repaired, and it will bo many years before her human resources will be restored to the pre-war standard. In the meantime the United States and Japan, and in a lesser dep'ree, Great Britain and France, are establishing themselves firmly in the markets which Germany used to supply. For the reasons stated, it will be gathered, I diasont altogether from the theory that Germany, if permitted to resume trading on the old terms, will at once commence to reconstruct her war machinery with the idea of having her revenge as soon as she can get ready. Aow let me suggest another lino of thought. Suppose Germany is bent upon revenue and adopts of_ her own volition the isolation it is claimed wc should force upon her. She is fairly self-contained and may close her doors and behind them devote her entire energies to building up afresh her arrnice and her arms. Instead of trying to become the workshop of the world by carrying on hundreds of industries and exporting their products, she may turn all her attention to manufacturing warships, guns, ammunition, and all sorts of military supplies, at the same time developing her agricultural and pastoral resources to tho utmost so as to be independent of imported food supplies. Would she net in that way sooner be in a position to seek her revenge than if a large proportion of her people were engaged in manufacturing for other connfries? Still pursuing this line of thought, if Germany left the markets of the world for us to supply, should not wo be so much the less able to make preparations to fight her again? There is yet another aspect of the question to which brief reference must be made. It is assumed that we shall demand an indemnity as a condition of peace. How is that indemnity to bo paid if not in kind? I confess I cannot tell. Gold will not go far towards it. "In conclusion let me say that tho thought 1 have expressed must not bo taken ns my matured and unalterable opinions. I have raised questions for dheussion and it is only by discussion and by interchange of opinions that wc can hope to arrive at sound conclusions, and in this matter of our future relations with Germany it is of the utmost importance that, our policy shall he sound. The influence of this chamber in a matter of Imperial policy may he a negligible quantity, but public, opinion is the aggregation of individual opinion and it should bo our aim to form within our limits a sound public opinion.”

THE DISCTSSIOX. In inviting members to express their opinions on the matter, the President said lie was a pronounced free-trader, but lie recognised that in the circumstances of to-day these convictions bad lo be put aside for the time being. At the same time-be did not think it would bo wise for England to trade with Germany on the basis of a strong protective tariff, for be did not consider that on these conditions England could compete wan Germany for tne-trnde markets of tile world.

Mr. S. IV. Shaw said that if all the Allies decided not to trade with Germany. Germany's markets would bo very' limited. The danger would be witn neutral countries. Circulars bad already been received from Sweden giving particulars el new manufactures, and there was no doubt that a grout many Of these articles were of German manufacture. The present feeling of everyone was that they did not want In touch anything German. Mr. K. S. .Johns thought that apart from tiie moral aspect New. Zealand could not afford to do without the trade of Germany.

Mr. M. Kraser said the purpose of tl»o paper seemed to him somewhat obscure. Ho .stressed tho fact that Germany built up hoi' xrado with the colonies by unfair means—the bounty system and subsidised freights. Me always had a key to open the door that would show us what wc should do, and this was to act fairly and justly. If wc won wo should deal fairly with Germany. If they won wo would expect them to deal fairly with ns. .Mr. H. Cocker said ho was sorry to have to confess, as a British subject, chat we had a lot to learn from Germany. which, by its educational system and scientific methods, had been able to compete with us successfully. ‘ Mr. «5- H. Sole said ho was quite satisfied that a tremendous lot ot stuff now coming into New Zealand branded as made in Switzerland. Holland, and ocher notU.al count: h”.. was uunufnetMicii by the Gorman* ami shipped in teoso uc.iirat -count;ie*. Japan ... d mm 1 ;' cv;..;iu'ioK woic already maki.k.’ii cAuar . ar.'T .ir.pac ivas putting toys, taiu-y goon. ran vir.p- y on tho nmiKct could compote. GUma wry also manufacturing tine drapery, which had come to stay. It was too soon, however, to discuss what attitude should be adopted niter the war.

The President did not think it was too soon, aiid went on to say that the matter would doubtless be brought up when Mr. Massey and Sir Joseph Maid were at Home, and they would bo ashed what Now Zealand's* views were. Ho ihouglit they should b? given a lead as to the people’s opinion, and they would, no doubt, find this helpful when attending an imperial conference on the question. Continuing, Mr. Penn thought it decidedly wrong that New Zealand shipping companies should bring goods from Germany, via a British port, at a cheaper rate than they charged for similar goods coming from Britain. There was no doubt that this had been dnno before the war. Mr. Shaw agreed with the British spirit expressed by Mr. Fraser to treat the Germans fairly, but in the past, while wo had treated Germany fairly she had not treated us in the same way. Germany had cheaper, freights and other advantages, and the result was that she had been able to accumulate the money with which she was now fighting us. Mr. Johns said it was onlv competition which brought the English manufacturers into line. He thought the opinion should be expressed that we should trade with Germany after the war on fair terms, and he thought wo could not economically afford to do otherwise. Mr. C. H. Burgess said Britain must wake up and not carry on its trade on old coasexvaUvA -g*vfchodfc

The President, in bringing the discussion to a close, said his object had been partly attained in eliciting the opinions expressed. They were agreed that at present they wanted no dealings with Germany, but he thought it would be a mistake to rush into prohibitive legislation, or a highly protective tariff, binding us for the period after the war. In his opinion British trade had more to fear m the future from the ajjuited States and Japan than from Gorman competition. Those countries were taking advantage of the belligerent countries’ pre-occupation to establish themselves in the world’s markets, and they would bo more formidable trade rivals after the war than Germany.