The Wanganui Chronicle "Nulla Dies Sine Linea." MONDAY, JULY 24, 1916. THE PROBLEMS OF REPLACE TRADE.

Wanganui Chronicle, Volume LX, Issue 16704, 24 July 1916, Page 4

The Wanganui Chronicle "Nulla Dies Sine Linea." MONDAY, JULY 24, 1916. THE PROBLEMS OF REPLACE TRADE.

The manifold problems involved in the evolution of a satisfactory and effective policy for the conduct of trade after the war are receiving-the earnest consideration of statesmen and publicists throughout the Empire. Kroadly'. speakjtng, it may, we tlink, be* safely assumed, that the weight of opinion k in favour of a policy, the purpose and effect of which shall be:—r To establish a reciprocal preferential tariff system within the British Empire. , To establish commercial relations on a reciprocity system between Great Britain and other Entente Powers. To grant favourable treatment to neutral nations. To restrict trade and commerce with enemy aliens by means of a tariff and other measures with a view to preventing dumping or securing of commercial advantages on the restoration of peace. Th,9 above planks carry the endorse>ment of the important Imperial Conference, which was composed of the representatives of the i3ritrish Chambers of Commerce m the United Kingdom, the British possessions, and foreign countries, who met in London last month for the purpose of discussing economic problems arjsmg out 7 of the war. It is a matter of common knowledge that the British Board of Trade h in receipt of similar suggestions trom different commercial institutions concerning the advisability of giving proper protection to industries in Great Britain, uniting the whole Empire fiancially and commercially, and penalising, if not actually annihilating enemy trade. But whib it may he comparatively easy to persuade all poltical parties that in the interests cf Great Britain and her Allies, some such policy as desirable, there remain to be faced the extraordinary difficulties which must be overcome before such a policy can be made effective. We caa insist that all goods of enemy manufacture shall be marked with the name of the country of origin. We can impose a special tariff on such goods. We can give special treatment to our own people, to our Allies and to neutrals. But when we hav,e done tnese things we may find ourselves still far from the attainment of the object we have in view. If Germany finds herself unable to do business with us directly, we raiy be sure that she will strive her utmost to profit indirectly at our expense, and one of the means by which it may impossible for ncr to do this —unless we are able to devise an effective check — was stressed by Mr. L. K. isassett on l^nda7> r evening during the conference between the visiting members of the Board of Trade and the Chamber of Commerce. The danger was expressed in the resolution which, on Mr. Bassett's motion, was carried by the Chamber, and which, in effect, was a recommendation that the Board ot Trade, when considering the question of trade relationship with enemy countries, should take mto account not only "the place of origin" but also ths problem of "replace trade" at present operating among the nations of +he world. What is meant by the term " replace trade" may be thus explained : Germany is an enemy country

whose goods we do not wish to buy. The United States, for example, is a neutral country doing business both with Germany and with us. We buy American goods wnich America replaces in her own markets, for home consumption, with German goods. The more we buy from America the more America buys from Germany, an arrangement which canot bat work for the mutual advantage of America and Germany, and which, in effect, not only nullifies the handicap we seek to place on German trade, but probably penalises us instead by making us pay more for the American goods than America pays to Germany for similar or perha.ps even -higher grade, goods. Imagine this principle operating in all neutral countries, and it must be obvious that unless Great Britain and her Allies can devise come way of effectively checkmating the operations Germany will be but little troubled by any policy which may be adopted for the restriction her trade.