A WARNING TO AMERICA.

Thames Star, Volume LXIII, Issue 17586, 27 March 1929, Page 6

A WARNING TO AMERICA.

! WORLD TRADE COMPETITION* l'Uicing ;i "danger" sign on the "unprecedented prosperity" attained by tho United States in the past ten years, Sir James Arthur Salter, K.CB. director of the economic and finance section of the League of Nations, uttered a warning in Philadelphia that in the next ten years the ''greatest trade competition the world has ever known" will spring up, as Europe seeks to stein America's monopoly on foreign trade. Another world conflict is even 'threatened as the result of this spur to international commerce, tho distinguished Englishman told members of the Foreign Policy Association of Philadelphia. He indicated that the'first step in commercial self-defence taken by the countries of Europe will bo the adoption of" high tariffs against foreign goods, a step which may result in <;internal riots and revolts" in those countries, the speaker indicated. Sir James declared that the only hope in warding off, a war caused by international trade relations lies in-evolving an "international code .of trade ethics." He asserted that at present each nation is, "going on its own in the matter of trade policy and is formulating trade principles that are proving highly offensive to other nations." Though the speaker declared he would mot comment upon the tarifF situation in the United States, he intimated that high tariff defences in Uncle Sam's domains were targets for tho combined animosities of the lands lying on the other side of the Atlantic. "If Europe retorts to America wjth similar high tariffs and restrictive trade ethics I tremble for the future of the world," Sir James said. "Such a situation would undoubtedly cause internal industrial riots and revolutions in the nations of the world. In the next ten years there will be a period of intense competition between foreign markets. I do not fear it as things look now. But if one country after another takes methods that are offensive to another 1 country, what can internal law do for peace?'' LOCATES DANGER. Sir James pointed out that America's rapidly growing prosperity has meant to the whole world a greater' total measure of prosperity, but he indicated that the danger lay in the attitude taken by individual Rations. The speaker strongly pressed the fact that "exchange," or a balance between the imports and the exports of a nation, is a most desirable condition for world prosperity. He indicated that nations have tried to tamper with this "give and take" of trade, by failing to act as referees in the industrial contest and jumping in and "aiming blows at the contestants." Ho pointed out that these "blows" are in the form of protective tariffs and subsidies. "Friction is growing daily between the nations of the world-because tho economic situation caused by their im- ! portent export situation is' having a profound political influence on their i governmental policy," he continued. I I _'The most important proposition facing us is the formation Tof a world code of .trade ethics. At present nations that outwardly, want peace are going their own independent way as far as their commerce relations" are concerned. Every 'nation has its own policy and no fundamental international principle of trade custom is being observed." Sir James turned his attention to the causes of American prosperity. Ho held up the inter-State commerce carried on in the country, as one of the most powerful reasons for' the financial soundness of the country. He drew an analogy between the freedom from trade restriction existing between the 48 States, a condition which has built up America materially, he said, aiid between a similar condition which should exist between nations. He indicated that if nations observed this same principle of free interchange of goods, the individual producer might, suffer temporarily, but the nation as a whole would prosper to an extent infinitely greater than if tariff bars are maintained.