NOTES OF THE DAY

Dominion, Volume 15, Issue 40, 10 November 1921, Page 4

NOTES OF THE DAY

Japan, Admiral Kato tells us, has never entertained the idea of building a navy equal to that of Great Britain or the United States. This statement raises the question of what Japan has actually aimed at in her naval policy. Tho subject has been extensively discussed in Tokio of late. It is stated that in' one well-informed quarter tho theory is that Japan will bo content with a ratio of two capital ships to tho American threo and the British four. This is based on the fact that the United States is 5000 miles away from Japan and would need a fleet double the Japanese in strength to confront it successfully in Japanese \vaters. Britain is twice as distant as America, and a similar argument applies in her case. It is contended that this ratio would bo satisfactory so long ns tho United States had »o naval bases on the Asiatic side. If Guam and Manila were fortified the situation would bj different, and the Japanese argue that they • would then require an ewon greater fleet than the American to have a margin of safety. It will be recalled that in recent cable messages the Japanese 1 have been suggesting that the United States should abandon her plans for fortifying any islands in tho Pacific, and even do away with her base at Honolulu. The Japanese have doubts also as to whether they can continue indefinitely to build capital ships costing .£8,000,000 to .£10,000,000 each, comparatively prosperous as they aro to-day. Nor is it certain that Japanese yards can .turn out the work satisfactorily, and Inefficient monstea' battleships would represent a disastrous collection of white elephants. There would thus appear to be several cogent reasons for a pacificatory attitude by the Japanese delegates in Washington.

Despite Russia’s starvation and general bankruptcy, Trotsky still seems to cherish military ambitions. In a message to-day he is reported as declaring that tho French are supporting, /the Jingo leaders in Poland, and that if Russia is "compelled to wage another war” she will hold France responsible. In this connection it is necessary to bear in mind that, according to dispatches in the British Press some weeks back, the Russian Committee of Labour Defence, over Which Trotsky presides, passed a resolution that war must be carried on ggainst Poland and every other non-Communistio State by every means except open warfare. The programme was stated to include economic pressure, murder and terrorism, fomenting strikes and disorders, and disseminating demoralising propaganda. According to a London "Times” correspondent tho resolution was a compromise between Trotsky’s militarism and the present policy of the Soviet Government. It is stated that tho campaign against Poland has been in full swing for some time past. Bolshevist agents, armed with, packets of diamonds, crossed the frontier, and their activities bore fruit in an eruption of strikes, disorder, and discontent. At the moment the avowed policy of the Bolsheviks is to drop their extrema ideas in order to secure the assistance of foreign nations in the rehabilitation of Russia—a task for which the Soviet’s own plans are hopeless, comprehensive as they have been in destroying the country’s previously existing civilisation. In documents the authenticity of which has never been challenged, the Bolsheviks have advocated double-dealing in transactions with capitalist countries, and it seems that their neighbours must still keep a very wary eye on Europe’s mad dog.

Answering a question by Mr. Wilford in tho House of Representatives yesterday. the Minister of A&riculture (Mr. Nosworthy) touched upon a vital aspect of the produce marketing problem. He quoted the report of a sub-committee of tho British Standing Committee on Trusts to the effect that there is "at ■least a tacit understanding between tho American moat companies (operating at Smithfield) to respect, each other’s position which secures to them all the economic advantages of an active combination, and all questions affecting the strategy of tho trade as a whole ore settled by the heads of tho businesses in Chicago.” The report, which was presented last that the American companies have attempted to fix a minimum price for meat up to a particular hour of the day, that they have regulated the quantities of meat to be put on the market weekly, and. that it has been their practice to fix the prices for their country sales on. the basis of London prices. It is also stated that no complaint was made of unfair trading ou the part of the American companies beyond severe cutting of prices for th© purpose of developing trade or clearing surplus stocksApart from tho lines on which it has thus far been exercised—a question in regard to which there are some differences of opinion—this domination of the British meat market by foreign interests is obviously inimical to tho interests of both Dominion producers and British retailers and consumers. The Minister of Agriculture said yesterday that the matter had already been discussed with the British Government, but did not inform the House whether .any understanding had been reached. The matter is one that ought to bo pursued energetically. As much in the interests of the people of the United Kingdom as in those of producers in the Dominions, tho British Government ought to bo wiljing to take what steps are possible, by regulating auction .sales of moat or in other ways, towards providing a market “untrammelled by operations capable of restricting prices and preventing healthy market competition.”

Although tHe "Yorkshire reports distinct signs of a slight improvement in the woollen trade, tho slight-

ness of the improvement seems to be more pronounced than its distinctness. The view has been hold in Bradford for some time that the prolonged stagnation in trade is due to two causes. Tho home demand for cloth, it is asserted, has been restricted by the high prices maintained by retailers and tailors. On the other hand, the export trade is suffering because of the much lower production costs in Germany. That the traders and tailors are asking excessiva prices is disputed. The manufacturers declare that with cloth at 10s. a yard the material for an ordinary man’s suit costs 355. Yet many tailors continue to ask nine guineas for such a suit, and refuse to bring their prices down as the manufacturers and spinners have done. Unless they make a sufficient cut in prices it is declared that it will be a very long time before they quit their present heavy stocks and trade can return to normal. Tho contention that they are making undue profits is repudiated by the tailors. "With cloth Bss. the suit length, it is stated that 255. has to be added for trimmings, and X 3 19s. lOJcl. for wages (71 log hours at Is. Ijd. per hour). This gives the prime cost of a suit as 416 19s. IOJd., Raving a margin of £2 10s. IJd. if the suit is sold at £9. This margin has to cover cutter’s expenses, alterations, credits, and the overhead charges of 'die business, and is a gross profit of 26 per cent, on the selling price. It is stated that the Board of Trade investigations showed that a margin of 33 per cent, on selling price was by no means excessive, and the figures quoted above give a margin 7 per cent, below that. Furthermore, it is assumed that the tailors have obtained their cloth nt the present price of 10s. a yard, which it is pointed out is by no means the case with those carrying any considerable stocks. These figures will give some idea of the difficult position in which the trade is finding itself in Britain. » * * *

Opening tho Financial debate in the House of Representatives last evening, the Leader of tho Opposition (Mr. T. M. Wilford) made his customary mistake of straining after effect. He, of course, said a number of things with which everyone will agree. Economy and efficiency in the Public Service and a searching scrutiny of public expenditure are not only demanded by tho Leader of the Opposition, but are accepted - by the Government as tho keynote of its policy. It would bo distorting facts, however, to say that Mr. Wilford threw any new or valuable light on these questions or on others, such as the oversea marketing of produce, to which he referred in the course of his speech. In the extent to which his speech- was critical, it was very well answered by the Minister of Education (Mr. Parr). The Minister must be credited with a masterly analysis of the existing financial position and presentation of the conditions in which the policy of economy which by common consent is urgently necessary must be carried into effect. If financial criticism is to escape the reproach of mere futility it must take fair account of the extent to which public expenditure has be»n swollen by increased wages and salaries, and by a tremendous in crease in the prices of material, plant, and equipment used on the State railways and in other Departments which are in a large way of business.