The Dominion. TUESDAY, FEBRUARY 15, 1916. TRADE WAR: PRESENT AND FUTURE

Dominion, Volume 9, Issue 2695, 15 February 1916, Page 4

The Dominion. TUESDAY, FEBRUARY 15, 1916. TRADE WAR: PRESENT AND FUTURE

The question of trading with the enemy, now and after the war, was discussed from various points of view by a deputation representing the executive of the Association of the New Zealand '.Chambers of Commerce which waited on Ministers yesterday. Tho legal aspects of the same question are .dealt with in a clear and comprehensive manner in a statement by tho Attorney-General (the Hon. A. L. Herdman), which will be found in full in another part of this issue. It is well to know that this matter is receiving the attention both of the Government and the commercial community. Its importance cannot be exaggerated. Mr. Herdman treats it mainly as a war problem. Enemy trading should be prohibited bccause "every trading transaction which is to the advantage of an enemy in enemy territory helps to strengthen the enemy nation as a vital fighting force." lie goes on to state that he does not think that trade between rival nations at war is interdicted with the object of destroying a nation's power after peace has been restored, but that it is stopped for the purpose of reducing a nation to a state of impotence while hostilities are actually in progress. The immediate object of cutting off trade with the enemy is no doubt to decrease his fighting power. Tho law against enemy trading is based primarily on this view. But, as Mr. Herdman reminds us, wo are now waging a war without parallel in history, and the unparalleled situation which has been created has made it evident that the conflict cannot be confined to the actual fighting forces of tho belligerents. It is quite impossible to draw a clear distinction between the economic pressure now being exerted against the enemy and the attack to be made on h'is trade after the war is over. The one thing runs into the other. The trade war has already commenced, and will be continued after tho clash of armies and navies has come to an end. Now is the time to prepare tor the future. The coming commercial struggle will be a tremendous one, ai.d any effective blow that we con at present strike against German trade will help us to win the war and also make it more difficult for Germany to regain that commercial prosperity which enabled her to create that great army and navy by means of which she hoped to smash the British Empire. It is the duty of tho Government to consider the future as well as the present in dealing with this question of enemy trading. It is worthy of all the thought that can be given to it. The representatives of the Chambers of Commerce specially desired to direct the attention of Ministers to the commercial situation which would have to be faced after the war had concluded; but the speakers also referred to' tho more immediate aspects of tho trade problem. Enemy influences and interests in British companies, and German devices for maintaining a hold upon the trade of our Empire, H»erc discussed. It is not an easy matter to frustrate all the tricks and subterfuges of our cunning and unscrupulous enemy. It may bo taken for granted that ho v/ili do his utmost to circumvent us. We will havo to bo ceaselessly on the alert, now and in the future. The Ministerial reply was thoroughly sympathetic. The first blow against German trado was struck when Parliament authorised the imposition of an additional 50 per cent, duty upon enemy goods. The Prime Minister expressed the opinion that there would bo no difficulty in bringing this section of the Finance Act into operation. This will be a good first step; but other steps will have 'to follow. We can do a good deal on our own account to prevent the renewal of the German commercial invasion of New Zealand; but joint action by all the States of the Empire is nocessary if tho effort to build an effective barrier against Germany's trado is to succeed. The matter must be regarded as a great Imperial problem. Tho defeat of tho enemy m trade, as in war, can only bo assured by co-operation and organisation on a comprehensive scale. Economic theories _ which prevent the realisation of the ideal which the war has created of an efficient and selfsufficing Empire will have to bo thrown overboard. The war is making all things new. Nothing can remain cxactly as it was before the upheaval. A significant indication of the change that is coming over economic opinion in Britain is afforded by the Spectator's conversion from the position of ono of the foremost champions of Free-trade to preferential treatment of goods produced within the Empire. The. war has revealed the weak spots as well as the strong ties in our Imperial system. It has shown -us the disadvantage of our illogical and haphazard trade policy.- The best brains in the Empire should now be thinking out the outlines of the hew commercial system, which .will be one of the principal features of the reorganised Empire for which we are now preparing tho way. It is our business as New Zealandcrs to consider the trade problem from our own point of view first, and then from the broad Imperial standpoint. The problem has still another aspect. We cannot forget our Allies. Our trado relations with the peoples who are now our comrades in arms will have to be reconsidered. This is one of the questions which will be discussed by the High Council of the Entente Powers which is now being'established. The near future is full of tremendous possibilities.