The Waikato Times. With which Is Incorporated The Waikato Argus. TUESDAY, JULY 28, 1931. EMPIRE TRADE.

Waikato Times, Volume 110, Issue 18392, 28 July 1931, Page 6

The Waikato Times. With which Is Incorporated The Waikato Argus. TUESDAY, JULY 28, 1931. EMPIRE TRADE.

When the discussion on the Statute of Westminster took place in the House Mr Fofbes expressed his disappointment that the Imperial Conference had not been able to Induce Britain to give preference to Dominion products, and although two members of the House disagreed with him the majority appeared to think the attitude of the Dominions was justifiable. It is a very curious position. The Prime Ministers of the Dominions went to England to consider, amongst other things, the steps to be taken to improve economic conditions throughout the Empire, and the Dominion’s request was that Britain should place a tax on goods such as they supplied when coming from foreign countries. It is a strange reversal of conditions. Seventy years ago Britain, in pursuance of her free trade policy, granted entire fiscal independence to the Dominions. Disraeli did not oppose this in the House, but afterwards expressed the opinion that when self-govern-ment had been given to the Dominions it should have been coupled with the provision that duties should not be placed on goods from England. Now, although we think that these duties for anything more than revenue purposes are a mistake, we hold that Britain was wise in not coupling autonomy for the Dominions with any terms which curtailed their fiscal Independence. The Dominions to-day are still within the British Empire, In spite of the opinion common on the Continent that colonies when ripe drop off the tree. Had their liberty of fiscal management been limited it is doubtful whether the loyalty of the Dominions would have persisted until to-day. The American War of Independence was -raised on this "very question. The idea that Britain should dictate the economic rules for the Dominions is one that would be resented in every one of them. The strange thing is that they cannot see that this rule applies equally the other way. The Dominions have no right, from any point of view, to dictate or urge any fiscal policy on Britain. If they persist in so doing they will not alter Britain’s conceptions, but they will undoubtedly loosen the tie of Empire. Anyone who urges that the conditions in some other country should be altered in order to obtpin some advantage by the change is no true friend to the Empire. It is obvious that any such request or demand can have no possible effect in the other country. Its sole result will be to lower the sentiment which remains the only tie that binds the Empire together. On a small scale we have lately seen the dire effect of these fiscal quarrels. Canada and New Zealand have killed the trade that existed between them, to the injury of both.

Britain is a manufacturing country with a dense population, much wealth, great Industries, and Immense financial business, while her agriculture shrinks year by year. The Dominions are the exact opposite, being of wide area, Insufficient population and great capacity for the production of food and raw materials. All the conditions for an exchange profitable to both sides exist, and this has been carried on to the mutual advantage of both sides for many years. The Dominions, however, are by no means all the countries from which Britain draws her requirements. The Argentine is often quoted, where more British capital has been sunk than in probably all Ihe Dominions put together. The Argentine is as sympathetic to Britain as some of the Dominions, and wore stie included in the Empire, might not have been so anxious for the. Statute of Westminster as the

Dominions who carried it. The only effect of the preference which the Dominions asked for would be to

increase the price of food in Britain; if it did not do this it would be of no advantage to the Dominions. If the price were increased it might possibly come about that the quantity would be diminished. Mr Bennett (Prime Minister of Canada) was chief mover in the demand for preference, while at the same time he stated his intention to manufacture in Canada everything that he could possibly induce manufacturers to take up. He offered a preference of 10 per cent., but on inquiry this was found to be merely 10 per cent, on the existing duty. If the duty were 30 per cent, to Britain and 40 per cent, to foreigners he would increase the duty to the foreigner by 4 per cent., and after making this generous offer he asked Britain to desist from buying wheat from such countries as the Argentine. The whole question of Empire free trade did not stand examination for a moment; it has been abandoned even by its author, Lord Beaverbrook, whose new stunt is an attack on the League of Nations. If Imperial preference were to be instituted how should we treat the cotton from Egypt or the Sudan? Is it to have preference over American cotton? If so, we would plunge a large industry into still greater trouble. There is some room for Imperial preference between one Dominion and another, particularly between Canada in the Northern Hemisphere and Australia and New Zealand in the Southern Hemisphere; the openings for trade in Japan, China and the Malay States are far greater than those between the different Dominions. It is not area that trades, but population. The Idea that New Zealand can exercise an influence on Britain to alter her fiscal system is a mere will-o’-the-wisp. She cannot do it, and ought not to be able to do it. We all wish earnestly for a rise in prices, but it should be one that comes from the economic and financial conditions of the world, and not one brought about by jerrymandering with duties.