War and Commerce

Progress, Volume XI, Issue 10, 1 June 1916, Page 645

War and Commerce

THE EMPIRE’S OUTLOOK A most interesting address was given before the Christchurch branch of the Royal Colonial Institute last month by Mr. H. J. Marriner. The address is so full of suggestive points that we have no hesitation in reproducing it for the benefit of our readers as published by a Christchurch daily. Mr. Marriner, in the opening portion of his speech, dealt with the historical aspect of his subject. He quoted Sir Walter Raleigh’s ever memorable and true remark: “Whosoever commands the sea commands the trade and whosoever commands the trade of the world commands the riches of the world, and consequently the world itself,” and said that as the history of England herself showed, Avar did not necessarily mean that a nation must reach disaster because of it. In fact, during the long struggle Avith Napoleon, England, though she increased her burdens, also increased her Avealth and opportunities, and the secret lay in her having the command of the sea. During the period from 1815 to 1870 Great Britain was able to manufacture and export to all countries without competition or practically so. The speaker touched upon the important point of England’s free trade policy at some length. This policy, he said, Avas so engrafted into the British idea that although it was iioav obsolete and detrimental to Britain’s true interests, it had become a fetish to Avhich the people still boAvcd. Cobden, the freetrader, and Bismarck, the protectionist, had diametrically opposed ideas. Both had prophesied, but the German’s prophecy had come true, or Avas about to. ■ •, ' : ’•*'[▼! THE RISE OF PRUSSIA

The speaker sketched the events which, after 1870, led up to the rise of Germany. A great impetus, he said, was given to German commerce by Bismarck bringing down in the Reichstag in 1879 a strong protectionist tariff Bill, securing her home markets, but allowing her to exploit the foreign markets. From that date Germany's trade and shipping bounded forward in gigantic strides, until with swelled heads the whole nation had listened to the Kaiser and his war lords, and, as they forced their "blood and iron" policy on Denmark, Austria and France, so they would try and continue to do so, and force the whole world to their feet. By strenuous labour, by bringing applied science into their every day work in laboratories and factories, by supplying the wants of their clients, by peaceful methods, and in some cases by underhand methods, they gained a big hold on the commerce of the world, and nothing less than this war would overthrow the commercial power of Germany. Had it not taken place it only required two decades of peaceful but strenuous penetration on British commerce to have gained the mastery. This war had, therefore, in this case, been a blessing in disguise, pointing out to us the weakness in our national and commercial armour. It was erroneous to say that Germany and

Austria only made rubbish, for ho had seen in these countries goods which for skill, workmanship, finish, and beauty were unsurpassed anywhere.

POWERFUL ORGANISATION The speaker went on to outline the powerful and intricate commercial organisation which the United States and Germany had, legitimately enough, used to forward their aims. So far as Germany was concerned its organisation was the best in the world. All districts were divided, so that there should be no overlapping and no competition. Railways, Canals, and rivers all were brought to the highest standard of excellence so as to bring the raw material to the manufacturer, and take to the ports the finished articles. The factories were kept constantly at work, if possible three shifts daily, so as to reduce the cost, of production, and the residue at stock-taking was dumped into free trade England at ruinous prices, and the loss made was spread over the year’s workings, and was thus not appreciable. The German commercial power was felt in all countries of the world, and like a huge octopus was gradually spreading its tentacles until the aim was to have the world’s commerce in its grasp. The Germans had done a great deal of filching ideas and patents from other nations. The great dye trade, worth £20,000,000 annually, was a British patent, and a large proportion of the steel turned out was by a process of Thomas Gilchrist. Out of fifteen German trade specialities the patents were in eight and a half cases British, four and a half German, one French, and one American.

THE CHALLENGE In the period from 1870 to 1914 they found that British trade had been severely challenged, and Great Britain had not held or increased her industries to the same extent that the States and Germany had. For this three main reasons had been given, viz.:—

(1) The phyiscal and geographical advantages peculiar to Great Britain were being outweighed by the superior organisation of competing nations; (2) Our manufacturers did not receive from the people the same skilled assistance that the people of other nations were giving to their countries' commerce; and (3) The application of new inventions and discoveries in commerce was not encouraged to anything like an adequate extent. Cobden's boast that all other nations would follow Great Britain's free trade in five years was not borne out. France, Switzerland, Italy, Holland, Denmark, Germany, and the United States, in fact the whole world, with the exception of Great Britam, had to place, prohibitive tariffs against imported goods so as to protect their home markets, while giving scope for exporting. Germany and the United States had increased their export trade a great deal more than Great Britain,

GROWTH OF TRADE Between 1880-1884 Great Britain’s exports of manufactured goods were valued at £206,000,000, Germany’s at £93,000,000, and America’s at £26,000,000. For the years 1902-1906 Great Britain rose to £250,000,000, Germany to £177,000,000, and America to £100,000,000. The increases were: Great Britain 21 per cent., Germany 90 per cent., and America 285 per cent. Some writers said that we must be careful not to upset Germany because she bought so much from us. True, but if they analysed what she bought they would find that she bought coal, food stuffs, and raw materials, which were essential to the manufacturers. "What she sent to Great Britain were manufactured goods, on which the manufacturer had made his profit and the workmen received their wages. In 1913 Germany bought from England £40,000,000, and we bought from Germany £80,000,000; a half of this latter amount was a fair estimate for wages paid in the process of manufacturing. If the greater part of these goods had been made in Great Britain and the millions spent in British wages, what a difference it would have made to British manufacturing centres.

SALVATION IN WAR After referring to questions of emigration and the huge resources of the Empire, Mr. Marriner said; “This war is going to be the salvation of our Empire. Money was so easy of accumulation that we were getting indolent, while our more strenuous competitors were taking advantage of us. This will all change. We have been shown the abyss that we were making for. Our commerce, patent laws, and tariffs must be amended so as to stop once and for all our markets being exploited for the benefit of foreigners. Our greatest commercial opponent is now busy manufacturing a large quantity of goods which are under the organisation of the Government, and as soon as peace is declared, will flood the markets, turn them into money so as to give her the financial help to anther strength to further fight our economic conditions in the future. This must be stopped before the crisis comes, and we, one and all, must strengthen the hands of Governments to see that these goods are not allowed to upset our British commerce. In the past the commerce of Great Britain has been built up by the individual, and upright efforts of the business population against strong hostile tariffs and subsidised steamers. Governments have seldom helped, looking rather upon business as outside their domain, and politicians have taken the place of men of expert knowledge. For the future party systems with their pernicious legislation must cease, and only the best brains .be employed. Commerce must receive its full recognition and assistance from the Governments, and officialism must be brushed aside. The future will call for the best in us all as the problems of future government and commerce are stupendous.”

In conclusion, Mr. Marriner said he was optimistic as to the future. He hoped to see the whole of the Empire allowed to have a say in the Empire's policy, and then with system, application and the

complete organisation of our huge wealth, we could rise to higher things, and bring peace and blessing to the smaller nations of the world.

Loud applause greeted the conclusion of Mr. Marriner speech, which was followed by the exhibition of some excellent lantern slides of German towns.