The Dominion WEDNESDAY, FEBRUARY 2. 1916. THE ECONOMIC STRUGGLE

Dominion, Volume 9, Issue 2684, 2 February 1916, Page 4

The Dominion WEDNESDAY, FEBRUARY 2. 1916. THE ECONOMIC STRUGGLE

The Australian Government deserves great credit for the vigorous manner in which it is endeavouring to defeat the Germans in trade as well as in war. _ The recent proclamation prohibiting enemy subjects from holding shares in public companies in Australia has evoked- a whine of cqmpljiint from a Berlin newspaper, which describes the regulation as "the latest atrocity," and declares that the • British colonies will one day bitterly regret such "robbery." This cry from the enemy ma-y be taken,as a testimony to the effectiveness of the Commonwealth's antiTGerman campaign. By exclude ing Germans from public companies the Australian Government has done something to thwart German schemes for the economic penetration of other countries, especially the British Empire. The prohibition, though not without its difficulties, is a step which will be generally approved. It should not be regarded as an isolated blow, but as a part of the general, policy of crippling the enemy. It is the logical consequence and complement of the law which forbids Britishers to trade with the enemy. A proclamation which recently appeared in the Commonwealth Gazette gives the following definition of "trading with the' enemy":—

1. Any transaction with or for the ■benefit of—'

"(a) any firm carrying on business in T.fie Commonwealth or elsewhere wliicli the Attqrnoy-General by notice published in the Gazette declares to he in his opinion managed or controlled directly or indirectly by or under the influence of, or carried on wholly or mainly for the benefit or on behalf of, persons qf enemy nationality; or resident or carrying on business in an enemy country; or "(b) any person carrying on business in the Commonwealth or elsewhere whom the Attorney-General by notice published in the Gazette declares to he in his opinTon—(i) a person who is or has at any time been a subject of a State which is now at war with the King; or (ii) a person, whether a British subject or not, who is carrying on business on behalf or iu the interests of a company, firm, or person w!Cn which or with whom trading is prohibited.

The barring of enemy shareholders is altogether in accordance with the spirit the above prohibitions. If it is against the interests of the Empire that German firms should do business in British communities, it is equally undesirable that enemy subjects should be permitted to exercise any control over, or to participate in, the profits of British companies. The Australian Prime Minister (Mr. Hughes) puts the position clearly and forcibly when he tells us that if we are to fight the Germans and beat them "we must fight them in every possible way. There must be no conditions, and no reservations." With relentless determination we must press home' every advantage. "We must cut out every fibre or Germany; wc must cut out all Gavmaa goods; cut ou t everything; and every power which

Germany exorcised before the war." By half measures we will never defeat Germany either in the economic ftnigglc or on the battlefield. We must hit unflinchingly at every vital spot.

It has been asserted from time to time that a considerable amount of trading with the enemy is going on in an indirect way in New Zealand. It is said that British branches of enemy businesses are being kept going under various disguises, and that the profits will ultimately find their way into German hands. In order to prove that enemy firms are still trading with New Zealand, an Auckland merchant refers to a list of supervised firms which the' Australian Government has prohibited from trading with the Commonwealth, and he states that or five of the houses mentioned in the list are still sending goods to New Zealand. This is a matter that ought to bo investigated without delay. The l{cw Zealand Government does not appear to be waging the economic war with sufficient energy. Mit. Massev's attention has been directed to the matter, and his assurance that the Government real' .es the importance of grappling with the problem is satisfactory as far as it goes. But it docs not go • far enough. It is the duty of the responsible authorities to make inquiries on their own account, and not merely to wait until other people bring them information regarding German commercial activities in our midst. The knowledge that "the enemy is full of ingenuity" should cause the Government to adopt special measures to frustrate his designs. Whenever and wherever tho enemy raises his head an effective blow should be directed at him. The Government should seek him out and constantly watch for manifestations of his secret workings. _ His masks must be torn off and his disguises penetrated. Every citizen ought to assist in this trade war, but the authorities ought to be continually on tho alert, _ and the Customs Department utilised to the fullest possible extent to check evasion _ and trickery. ' It might prove desirable to appoint special officers to conduct investigations, . Tho Commonwealth Government has found it necessary to take drastic action in this liiattcr, and our own Government might well extend its efforts to prevent enemy goods of any kind from being sold in New Zealand directly or indirectly. The enemy is extremely cunning &iul utterly unscrupulous in his methods of commercial warfare, and unless we are very vigilant indeed wc are sure to he outwitted.