AUTARCHY IN PRACTICE

Wanganui Chronicle, Volume 79, Issue 277, 23 November 1936, Page 6

AUTARCHY IN PRACTICE

(WERMANY has two economic policies, a short-term policy am a long-term one. The short-term policy is one of intense nationalism, that is to say the effort to produce all 01. the pro duels possible within her own border. The long-term policy i: a return to international trade. The latter must, however, wai for the time being. The policy toward autarchy is encouraged because it i nationalistic, and at the same time used as evidence of the wick edness of the rest of the world against Germany. The cause o its adoption is that Germany is compelled to make what she cat a! home or do without it. But Germany is a centre of machinery-making and conse quently it is essential that she shall secure her metal as clieapl; and as efficiently as possible. Here lies the rub. The iron or miners desire to possess the home market, but the smelters am the users of the metal desire to secure foreign orc. The iroi content of foreign ore, however, is 55-60 per cent., and the honv ore 30-35 per cent. Smelting cost of the home on- is four time that of the foreign ore, consequently the decision of the iroi industry to purchase only minimum quantites of foreign ore ha put up the costs of the raw material of the machinery and tool making industries. There is a strong propoganda campaigi being waged to keep down the foreign ore quotas, and an cquall; strong counter-propaganda effort to have them raised. Be tween two contending forces, not economies, but propaganda : likely to win in the “planned” economy of Germany.