NOTES OF THE DAY

Dominion, Volume 15, Issue 42, 12 November 1921, Page 6

NOTES OF THE DAY

Germany’s true financial condition remains a riddle which the Alfies have yet to solve. In a message to-day Herr von Gwinner, of tho Deutsche Bank, paints the’ picture in the most doleful colours, and declares the Allies’ demands to be an intolerable and crushing burden which in a flight of fancy ho pictures as bring, ing to an end the day of tho white race in Europe. Hear von Gwinner lays his colours on with a trowel, and it may be that tho Reparations Commission, after its investigations on-the spot in Berlin, will find that a little more optimism would be justified in tho German view of their position under the Treaty. On the other hand, it seemis clear that the Allies’ Lest hope lies in the continuance in office of the Wirth Government, which represents the most promising conditions for the prosecution of orderly work and the meeting of Germany’s obligations. On one side of it is the Radicalism that tihades off imperceptibility into Communism and anarchy, and on the other are the militarists and reactionaries. From neither of these sources would the Allies have much to hope. How far the present financial crisis is being produced by manipulation and how far it is possible for either the Wirth Government or the Allies to check whatever underground forces are at work are matters on which the . Reparations Commissioners themselves will probably have considerable difficulty l in making up their minds. A bankrupt Gemany is no use to the Allies, but bankruptcy may strike the Germans as profitable at this juncture.

Before judgment can he passed on Ulster’s attitude towards the Irish negotiations it is necessary to know exactly what the offer is that has been-made. If it is the original - proposal of Sinn Fein, that Ulster should maintain its Home Rulo. Parliament and status, but come .under Dublin instead of London, there has never been any reason to expect a ■favourable reception for such a. plan in tho north. It has to be remembered that wo have not yet heard on what points and to what extent Sinn Fein has yielded ground, and it is thus impossible to say whether Sinn .Fein is. willing to compromise, while Ulster is adamant, or whether the only hope of solution is for nil the compromising to be done, on Ulster’s side. Both sides are extremely ob-stinate-if they were not. there would be no Irish problem that could not have been solved veara ago—but without fuller disclosure'of the facts it is premature to say which is to blame for the present hiatus in the negotiations.

The returns of British trade which were published yesterday do not permit a direct comparison either between this year’s trade and that of last year, or between the figures month by month for the current year. Lower prices account in part for the smaller trade values recorded this' year as compared with last year, and also affect comparisons within the compass of the present year as far as it has gone. A& they stand, however, the figures bear plain witness to'a steady process of trade recovery. Exports from the United Kingdom in October were valued at over 62 millions as compared with 38 millions - in June, and the actual measure of recovery undoubtedly is somewhat greater , than these figures would indicate.. Since June wages and prices in the United Kingdom have been very materially reduced. Coal, iron, and steel prices have all fallen to a considerable extent, and the effect, with that of the coincident reduction tn wages, of course has been to lower the cost and price of manufactured goods. Although the actual increase in the volume of exports is not meantime disclosed, it may be taken for granted that a given value to-day represents an appreciably greater quantity of exports than it did in June. Tho recorded improvement in the monthly total value of British - exports thus means something substantially greater so far as the actual recovery, of trade is concerned. It may still be a long time before Britain gets back to anything like normal conditions, but the definite and sustained expansion in her export trade during recent months distinctly brightens the outlook.

After juggling with cost-of-living figures in the House of Representatives, yesterday afternoon, . Mr. McComL, M.P., arrived at the remarkable! conclusion teat wages, instead of being reduced, ought to be increased. Not at all dismayed by the problem of finding money with which to pay increased wages, he suggested, so far ns State servants' are concerned, that the obi ions course was to draw upon the aecumulated reveniio surplus. He urged specifically that money ought to bo drawn from this source with which to pay 1 increased wages to railwaymen. This proposal throws interesting light on the financial ideas and aims of the extreme Labour Party. On his own showing, the member for Lyttelton is prepared to penalise all other sections of the community, including the general body of its wage-earners, in order to pay higher wages to the men employed in a trading service which is barely paying working expenses, and at present is contributing nothing towards interest on a capital outlay of nearly forty millions sterling. It is hardly necessary to add that under the policy advocated by Mr. McCombs, the national accounts would (speedily show a huge deficit instead of a surplus of revenue. His ideas have been tried out by the extreme Txibour Government whiph is now nearing tee end of its tether in Queensland, and i the results in that State are seen net only in a disastrous dislocation of fts finances, but in a scale of unemployment Unknown in this country. » • * *■ n

Britain’s Air Ministry is having n chequered career, and the Economy Committee which is overhauling tho national expenditure is now calling on it to justify its existence. During the financial year ended on March 30, 1920, the Air Ministry’s expenditure -was .£56,000,000, and its disbursements during that period were tho subject of. strong criticism by the Comptroller and Auditor-General l in a report issued a few months back. After tho Royal Flying Corps and tho Royal Naval Air Service were combined into tho Royal Air Force the Ministry controlling its affairs developed its staffs at n tremendous rate And filled (ho entire Hotel Cecil with them. There was a feeling that much of this expenditure was excessive oven in war-time) and the opinion has lingered that the Ministry was Rir from having its wings properly clipped on the return of peace. The Comptr ’lor’s report was full of such instances us losses, for example, (if rC38.613 through tiie failure of an orderly officer to take any action on being informed that mach-

ines were being blown about in a high wind, and the idea that money is no object seems to have permeated the establishment; The Air Ministry is doing nothing towards civil flying at present, and in Parliament, there have been complaints that naval aviation is being hampered because of u lack of co-opcratlon between it and the Admiralty. Tho chief claim for a separate Air Ministry has rested on the question of production and development on tho ntieclianical side, and it was claimed that progress was hindered with the Navy and Army working independently. Combination' has increased tho cost, and many people beside the Economy Committee are anxious to know what else is being obtained.