The Dominion. FRIDAY, JUNE 23, 1916. A GREAT ECONOMIC ALLIANCE

Dominion, Volume 9, Issue 2804, 23 June 1916, Page 4

The Dominion. FRIDAY, JUNE 23, 1916. A GREAT ECONOMIC ALLIANCE

The results of tho Economic Conference of the Allies, which has just concluded its ''deliberations, are fully ; as important from the commercial point of view as the decisions of the Allied War Conference held in March are from the military standpoint: The object of the War Council was to secure the co-ordina-tion of all the means to victory in war and the agreement on a commonplan." The purpose of the Economic Conference was to seek a mutually acceptable way of co-or-dinating all the means to victory in the sphere of commerce, and to -reach an agreement upon the broad outlines of a plan of campaign. The delegates to the Trade Conference seem to have faced the vitally important problem which formed the subject of their discussions in an open-minded and courageous way, and their report may proye to be an epoch-making deliverance. Wc are living in a time of new departures—a creative period in the evolution, of the Empire. Before, our eyes the old order is changing and giving, place to the new.' The war has revealed the weaknesses of our economic system. It has destroyed confidence.in some traditional commercial theories, and the need for reconstruction has become urgent. There is general agreement that things cannot go on as before, both as regards the trade relations between the' different States of the Empire, and between the Empire as a whole and our Allies. The high degree of unity of effort and purpose which has been achieved in connection with the military operations of the Allies must now be extended into the region of trade. The war of armies and fleets will bo followed by a commercial war of unexampled magnitude. Germany is making large preparations for the coming struggle! There is good reason to believe that the machine she has organised in war will be maintained in peace. In a striking article in the Echo de Paris, M. Jean Herbette tells us that ' in Germany the State now controls, directly or indirectly, the distribution of nearly all raw material, the price of nearly all goods in the home markets, and, finally, all tho means for selling abroad. Whether she cultivates the land,: exploits the mines, or manufactures the goods— whether she works for her own consumption, for that of her army, or for her export trade, Germany is now a single enterprise, disciplined and. Cyclopean, all . tho. power of which is devoted to the service of the policy of expansion at any price. This formidable organisation of the economic resources of Germany can only be effectively met by pounter-organisation on the part of the Allies. M. Hekbette's argument is irresistible when he declares that unless the Allies agree now on the exceptional defensive measure's that must be taken after hostilities have ceased, there _ is a danger' that all their economic agreements will be found to be built on sand. Ho goes on to say that "wo -did not make our preparations before tho war, and have bitterly regretted it. Wo must make our preparations for Kftor the war. Wo owe that to tho men whose blood has been shed." The aim of the Paris Economic Conference was to discuss and devise a joint plan of campaign for the trade war. The British representa-

tives were Loud Crewe, Mr. Bonar Law, Mr. Foster (Canadian Minister of Commerce), and Mk. Hughes (Prime Minister of Australia)". It is a most significant fact that the conference should have unanimously agreed to resolutions- indicating a way by which the great rivers of commerce may be diverted from German channels, by which facilities may be provided for developing the vast resources of the Allies, and the control of raw materials so secured as to enable the Allies to meet Gci>many at least on equal terms in the markets of the world. This, according to Mn. Hughes, is what the conference has done.

Although the delegates had no authority to commit their Governments to any definite course of action, the official report shows that the conference was regarded by those who took part in it as something much more than a mere interchange of ideas on various aspects of trade policy. The resolutions take the form/of declarations ~that the-Allies promise, decide, and undertake to do certain things. They assert that the Allies have agreed to adopt a common economic policy, and lay stress upon the importance of giving effect to the resolutions forthwith. The representatives Undertake to recommend their respective Governments to take, without delay, the'measures requisite for giving full effect to the policy agreed upon by the conference and when it is borne in mind that, as far as our pwn Empire is concerned, this undertaking has been given by two members of the- British 'Cabinet, the Prime Minister of Australia, - and the Cana'dian Minister of Commerce, it will be recognised that the conference marks the beginning of a new era in our economic history. The report makes it quite clear that the proposals it contains are to/ be submitted to the Governments concerned for their approval, and that the common object may bo attained by different measures and methods. The resolution promising that the Allies shall take permanent measures to render themselves independent of enemy countrios for raV / material and manufactured articles essentia! to the normal development of thoir economic activities contains the qualification that, in giving effect to this promise, each of the Allies will have freedom to act in accordance with the principles which govern its economic policy. The resolutions are divided into three sections. The first deals with the war period; fhc second with the transition period of reconstruction after the war; and the third refers to measures for establishing and maintaining a permanent economic alliance. The delegates agreed to concerted action against enemy trading, also to take steps to prevent dumping and other forms of unfair competition, to Conserve the natural rosources of the Allied nations for their mutual benefit, and to do what is necess'arv to increase production within their territories as a whole to a sufficient extent to maintain and develop their economic position and independence in relation to enemy countries. The conference appears to have dealt with a most difficult and delicate problem on broad and bold lines. ,Mn. Hughes tells us that if the Allied Governments ratify its decisions the result will materially affect or change the relations and economic arrangements'of 600,000,000 of the world's inhabitants. Britain is expected to lead the way. The conference has thrown a tremendous responsibility on the British Government. Special stress is laid on the necessity for immediate action. | Mr. Asquith and his Ministerial colleagues cannot possibly ignore the recommendations- which two members of his,own Cabinet have agreed to and have undertaken to place- before him. And yet to give effect to them will involve far-reach-ing' alterations in Britain's economic policy. But in his recent Ladyspeech, Mr, Asquith showed that he realises that the time is at hand for Empire reconstruction on a largo scale. The demand for Imperial reorganisation has become so imperative that it cannot be resisted. The problem is a gigantic one, but it must be faced and solved. It is stated that Mr. Asquith contemplates summoning a jireat Imperial Conference, which will frame the details of a new Imperial Constitution on the lines of a'supreme centra] authority, and the complete selfgovernment of its parts. But it is probable that the trade question will have to receive separate treatment; Our enemies are even now making ready for the coming commercial battle, and unless we act promptly and effectively we will be placed at a great disadvantage.