The Dominion. MONDAY, AUGUST 5, 1918. "THE STRATEGY OF INDUSTRY"

Dominion, Volume 11, Issue 271, 5 August 1918, Page 4

The Dominion. MONDAY, AUGUST 5, 1918. "THE STRATEGY OF INDUSTRY"

The statements made- to a deputation of manufacturers by Mk. Lloyd George and Mr. Bonar Law regarding the reconstruction of Britain's economic policy contain Much important and interesting information, but thqg ido not'give anything like a precise and definite disclosure of the Government's intentions in regard to the-" organisation and promotion of trade within the Empire and with the outside world. It would not be reasonable to expect the Government to put forward a fully-developed scheme at the present' moment. It is, of course, imperative that the Empire should now prepare for the fight for trade- which will begin ;in deadly earnest as soon as the strife of armies and navies has finished, but in the meantime the winning of the war must bo the first and supreme consideration. "However impatient wo may be for a full statement of Britain's trade policy, wo cannot blame British statesmen for carefully weighing their words and for refraining from any_ declarations that might cause friction or misunderstanding or tend to weaken the concord which now exists among the Allies. The attitude of tho United States must also be considered. Mr. Lloyd George informed the deputation that America has not expressed ah opinion on the resolutions passed at tho Paris ConferThe reorganisation of the Empire's trade cannot be considered apart, from our commercial relations with our Allies. It is, therefore, quite plain, that no complete and authoritative statement of trade policy.can be made until the views of the American Govom, raent have been ascertained. It is impossible to separate war and trade at the present juncture, and the need for the commercial cooperation of tho Allies during the period of reconstruction, must be plain to everyone. Such being the case it is obviously Highly desirable that :>wc should have the good will of the United States in any trade arrangements which we may devise and adopt, and it is satisfactory to have Mr. Bonar Laws expression of confidence that the statement which the Government will be able to make will not conflict with tho views of any of the Allies. Though Mr. Lloyd George and Mr. Bonar Law wero not in a position to place a fully-worked-out and clear-cut scheme before the deputation they were ablo to lay down certain guiding principles on which tho new trade policy of the British Government will be based. Mb. Lloyd George declares emphatically that the essential industries of the country must be secured against unfair attack and unfair competition. This means that steps will be taken to frustrate tho unscrupulous trade methods of Germany Tho war has shown us 'that in order to defend the Empirowc must defend the Empire trade, and this cannot be done effectively unless private enterprise is supplemented and assisted when necessary by the powers of the State. The war has also - compelled British statesmen to sec the vital importance of defending the Empire's key industries and "key" products. Precedents 'or traditions which tend to bar this way forward must be brushed aside Tho EmP/rois determined not to allow itself to bo strangled by worn-out shibboleths or party prejudices. lne-Jiritish Government has already mado great departures from traditional methods. Take for example the (lyo industry. Two years ago the Board of Trade and the 1 reasur.y came to the assistance of this industry, and their efforts have been romarkably successful. In pre-war days Germany enjoyed a monopoly of certain dyes, and thus secured the "key" to the manufacture of British textiles. Britain has now regained that "key." Referring to this aspect of the question the New York I'osl states: That word "key" is itself a "key word" lor tho understanding of tbo economic ' conflict upon-which Urn nations nro entering, lu evory conflict tlioro nro strategic points. England used to believe unit because she held Gibraltar and Suez, and countless important coalins stations upon which the sun never (int., sho in a measure controlled tho world's future. But now she realises Hint Ihe strategy of industry lias become more potent than that of geography, and that that nation which can monopolies tho manufacture of certain "Tcoy" products needed by industry, or can corner tho output .of cor- !""! k°.t ' raw materials, has possessed itself of a weapon of tremendous power.

When peace is* restored then, will bo great competition among the nations for raw materials, Fortunately the British Empire possesses _ larger supplies of raw materials than any other Power, and a friendly understanding among the Allies regarding trade problems would enable them to control the economic fate of the world. Our enemies know this, and they will resort to cunning and scheming and intrigue of every form in the hope of depriving us of this tremendous advantage. It is, therefore, of the. utmost importance to make sure that the partnership between ourselves and our Allies shall not be dissolved as soon as the war ends. A dissolution would play directly into the hands of the Germans. The -Dominions Royal Commission reminded us that the Empire has substantially a monopoly _of the world's production or distribution of_ certain most valuable— commodities of commerce. This may have been dimly recognised before the war, but adequate efforts were certainly not "made by the governments of the Empire individually or in co-operation to use these commodities to their commercial advantage." In the past we have not made the best use of our vast resources—far from it. Sir William Earnshaw Cooper tells us that we have squandered our raw materials instead of diverting them into our own industrial reservoirs As an example of what he means he gives some striking figures regarding the trade in Indian hides We have permitted Germany and Austria to exploit this trade instead of using it to our own advantage. In 1912-13 and 1913-14 the value of exported raw kips (hides of small Indian cattle), which forms but one section of the 'immense Indian hide and skin trade was £7,900,761. Of' this amount Germany and Austria took £4,901,966 worth, and the United ■Kingdom only £199,8/0. The United btates, Spain, and other countries relieved us of the large residue "In short, we thought it only worth while to work up but 2.52 per cent, of this particular section of our raw materials in our own industries and permit enemy and alien countries to absorb 97.48 per cent. Such facts as these give British statesmen and capitalists and workmen much food for serious thought. They realise that the old policy of drift must bo abandoned. The whole trade problem is being considered anew and brought into vital connection with the problems of Imperial defence and Imperial unity. The coming' trade war will provide ample employment for scientific knowledeo, business enterprise, organising skill and political wisdom. The strategy of industry demands the closest attention of tho keenest brains in' the Empire.