The Timaru Herald. MONDAY, JANUARY 10, 1938 THE PRICE OF NATIONAL SECURITY.

Timaru Herald, Volume CXLIV, Issue 20931, 10 January 1938, Page 6

The Timaru Herald. MONDAY, JANUARY 10, 1938 THE PRICE OF NATIONAL SECURITY.

Italy’s decision to commence the construction of two 3a,000-ton battleships and a number of smaller craft, including submarines and twelve scout-ships, which is described by the leading Fascist journal II Lavoro Fascista as “a reply to Great Britain and the United States,” ought to convince all democratic countries that behind the Anglo-American decisions to build bigger navies is the grim realisation that the reign of law in the few countries subscribing to that doctrine can be maintained only by stronger fighting forces. It is doubtful, however, if the full facts relating to Italy’s armaments have been disclosed; indeed, it is hardly likely that Germany is the only one of the great nations which refuses to reveal her expenditure on armaments. Others pretend to do so, but few well-informed observers of the development of the international arms race believe that the returns of the principal totalitarian powers are any more informative than Germany’s blank entry in the survey of world rearmament just issued by the League of Nations. Nevertheless, the most careful estimate of Germany’s expenditure on her fighting forces suggests that her arms bill for 1937 approximated £1,000,000,000 —by far the highest total of any nation or almost half the entire world’s expenditure on armaments: The League of Nations' survey gives the world total expenditure on army as £2,400,000,000—£6000 a minute. Soviet Russia, spending £750,000,000, is shown as having the second highest arms bill. But this again, is a figure which cannot be checked. Britain's 1937 arms expenditure of £278,000,000 seems paltry by comparison, but it is almost as much as the combined armaments budgets of the 57 smaller nations. The world now spends on arms nearly three times as much as in 1913, and nearly twice as much as in 1932, when the Disarmament Conference opened, lu face of the known menace to the reign of law in international affairs reposing in totalitarian policy, could the strengthening of British fighting forces be regarded as having designs on any nation as suggested by the Italian journal, as an excuse for the building of bigger warships. This point was capably answered by Mr Winston Churchill in a recent speech on British responsibility: “It is obvious to all that others are waiting and are ready to fill our places in the world, and if we are going to carry forward the message ol Britain to future generations, and add new chapters to Britain’s long and glorious story, we must be ready to defend the inheritance which our forefathers bequeathed to us. We will defend it by wisdom, we might defend it by good will, by patience and coolness and not showing offence when none is meant; by association with other friendly countries and by supporting the growth of public law in Europe and Asia and by observing that law ourselves. We might do all this in defence of our inheritance, but in the last resort we must show ourselves able to defend it by force. Peace loving democratic peoples who are associated with the League of Nations aud have shown themselves willing to observe treaty obligations outlawing war as an instrument of national policy, have been reluctantly forced to the conclusion—as they have witnessed the slaughter of unarmed peoples and the ravishing of those poorly defended countries—that they must accept the dictum of .Mr Churchill and many others, that if they wish to survive in a world that has gone war-crazy, they must show themselves able to defend their inheritance by force.

FACTORS DISTURBING THE AVOOL SITUATION. More eyes than those of wool producers in New Zealand ami other pastoral countries, will be focussed on Wellington to-day for the resumption of the 1937-38 wool selling season. It is true that the New Zealand Minister of Finance has given an undertaking to the people of New Zealand that he has a plan by which he can insulate this country in general and the wool-producers in particular, against unfavourable variations in world price levels for their wool clips. But so far, the woolgrowers in New Zealand have been brought sharply face to face with the stark realities of world price movements by the substantial shrinkages in the amount inscribed on I he wool cheques they have so far received for the sale of this season’s wool. It is interesting to recall that at the first Wellington wool sale last season the offering was 20,244 bales of which 18,445 bales were sold and 1700 bales were passed. Prices, although showing a slight recovery on Auckland levels, were well below those of December 1936, but were better than those in 1935:

In spite of all the talk of insulating New Zealand against shocks from overseas, the fact remains that disinterestedness in New Zealand wool sales displayed by the United States and the obvious refusal of the Japanese buyers to participate in the sales for reasons yet to be disclosed, have removed from the market that vigorous competition that contributed so largely last year to the handsome returns received by New Zealand wool-growers who were fortunate enough to sell their wool at the sales towards the end of the season Other factors, such as weakening markets in London and Australia have contributed to the lack of confidence gripping the wool market. Moreover, the attitude of Japan still puzzles the wool authorities. For instance the Japanese Minister of Commerce, Mr S. Yoshino, made this statement which appeared in the cable messages on Friday last: “Facing the second year ol the war, there is a need for a continued supply of munitions, necessitating further drastic cuts in imports. For the first six months we plan to reduce wool imports 50 per cent, and cotton 35 per cent. Under the control laws last year Japan saved imports of wool 30 per cent, to the value of 60,000,000 yen, and cotton 10 per cent., to the value of 85,000,000 yen. No one knows, of course, whether or not this statement accurately discloses the position in Japan, because the wily Nipponese are seeking any avenue through which they can impress foreigners with the vital importance of Japanese purchases in the world's producing markets. Whatever the origin or causes of the factors now operating in the wool market, it is clear that the wool situation is disturbed by influences that have tended to affect price levels so disturbingly as to suggest to many growers that selling prospects may improve as the close of the wool-selling season approaches. It is certain, nevertheless, that the world’s appetite for wool has certainly not been satisfied, but that unwholesome factors, born of the uncertain international situation, are tending to create general uneasiness in the world wool situation. It is because of this uneasiness aud uncertainty that such widespread interest will be focussed on the resumption of the 1937-1938 wool selling season at Wellington to-day.

Per Bale Per lb. £ s. d. d. December, 1935 .. .. .. .. 10 12 0i 8.339 December, 1936 .. .. .. .. 21 16 10 14.619 December, 1937 .. .. .. .. 15 7 10 10.434