THE GLOBE. WEDNESDAY, MAY 12, 1880.

Globe, Volume XXII, Issue 1939, 12 May 1880, Page 2

THE GLOBE. WEDNESDAY, MAY 12, 1880.

Polynesian trade is a subject which must always be interesting to the colonists of New Zealand. Setting aside the prominent notice which was drawn. to it at tho time of Sir Julias Vogel’s/proposed South Sea scheme, the islands occupy a geographical position which must render their future one of intense interest to us. The fate, therefore, of the company which, on the failure of the house' of’-.Godeffroy was formed in Berlin with a 'capital of eight million marks to carry on tho business of the Messrs Godeffroy may well claim a few passing remarks. It was intended that the support of tho German Government should be sought for the company, and the idea that tho Government would grant it was fostered, amongst other indications, hy tho fact that the Prussian Finance Minister had said that the Reichstag intended to give essential support to Gorman interests in Samoa, and by. the rumour that Bismarck himself was , favourable to the proposal. Based on these assertions, a ridiculous scare was got up hy our Northern journals as to the political motives which were inducing Germany to seek for power in the South Pacific. With regard to the scheme connected with the house of Godfrey, we have, however, learned from a late telegram that tho German Parliament has refused to sanction the proposal made, and will guarantee nothing whatsoever to the now company. When details arrive hy mail in due course of time, it will probably be found that tho German Parliament was partly moved by the general, impression that it was scarcely desirable to extend German influence in such out-of-the-way quarters of the globe, and partly by the remembrance of a sot of circumstances of great historical interest, to which we will advert later on in this article. But first it may ho interesting to glance at tho general commercial relations of Germany with Australia and tho world at large over tho seas. There is at present a tendency towards protection observable in German politics. Whether rightly or wrongly, wo will not stop to argue, freo trade has fallen into disrepute, ifrlie German market is, say, the class at present in tho ascendant, but limited, and its relations with tho outer world are not such as in'England render the policy of free trade a sound one. Four years ago the free trade party, headed hy Dolhriick, President of the office of Chancellor, and hy Oamphanson, Minister of Finance, abolished the duties on iron, woollen goods,, and other articles. Although the principle was, in all probability, sound, yet the . change was too

sudden. The iron masters were in many instances ruined. The same with the ' manufacturers of woollen ~ goods. The German market was flooded with cheap English imitations of superior articles, and the manufacturers suffered severely. A reaction took place, the free trade policy was abandoned, and its upholders, Dolbrilck and Camphausen, resigned. So much for the general run of, German trade with England. As to its trade with Australia diroct.it isbnt very limited. Germany’s direct colonial trade is with South America, China, the Straits settlements, and such like places. In South America, in particular, its dealings are very largo. Until lately, the firm of Sehrcedor, of Hamburg, was the solo contractor for guano with Peru. It had enormous establishments in that country, and factories for the proper preparation of the raw material. But, in dealing with wool, the principal Australian article of export, Germany goes to the wool sales at London. The choice of wool there is, of course, so much larger than it could hope to got if it established wool sales of its own, that it has never tried to adopt the latter plan. And, with regard to the method in which colonial trade is carried on, there is one peculiar feature. The ports of Hamburg (through which passes three fourths of the whole trade of Germany), Bremen and Lubock are to all intents and puposos free ports. They levy no customs, but merely charge a commission of a half per mill. They act as the distributing medium for the whole of Germany. Under the system of protection at present obtaining in that country, the free play of business would be greatly hampered without these towns which are not burdened with the shackles to trade that are common over the rest of the country. After this short digression, lot us turn to the sot of circumstances to which we hinted above as being likely to be found to have influenced the German Parliament in its refusal to lend Government assistance to the company that has boon formed to carry on the business of the house of Godeflroy. About a hundred years ago Prussia, although practically an inland State, was desirous of negotiating with colonies and places beyond the seas for the purposes of trade. A company called the “ Kgl Preussischo Seehandlung ” was formed with this object, a company patronised by the Government. But in course of time the main object of the company fell out of its programme, and it developed into a banking institution, over which the Government had more or less of control, and, in that form, indeed, wo believe, it still'exists. In 1865 the Conservative party in Prussia was headed by Bismarck. That astute statesman had mapped, but before bis mind’s eye the course that events would in all probability take. He saw that a struggle with Austria was almost a certainty, and ho applied to the Prussian Parliament for supplies for three years for increasing the army to that point in efficiency and numbers which ho considered necessary. In making this request he labored under this disadvantage—that ho was debarred from stating the reasons that actuated him, and from laying bare the diplomatic secrets on which it.-hinged. The National Liberal party had then a majority in the Prussian Parliament. It was headed fay Lasker, the poor but incorruptible Jew and leader of the Left, and by Dr. Yirchow, one of the discoverers of trichiniasis in the human subject, and the leader of the extreme Radicals. This majority refused Bismarck tlu> supplies asked for, whereupon Bismarck, by the aid of the Kgl Seehandlung and the bankers connected therewith, defied , Parliament and carried on the business of the country without it. Tho excitement in Prussia became fearful. Bismarck became intensely unpopular, and affairs verged towards a revolution. The house of Rothschild refused to lend a halfpenny, so shaky did it consider the credit of the Government. But the war broke out between Prussia and Austria. Owing to Bismarck’s wise precautions, in a few weeks the army of the latter state was crushed, and Prussia was dominant in Germany. And then came the master stroke. In the time of his victory Bismarck did not reproach or glory over tho National Liberal party but he came to it, and humbly asked for an indemnity. He said in effect, “ I have acted illegally, but tho exigencies of circumstances, which you were not in a position to see, demanded it, and I now ask for pardon and an indemnity,” This unexpected moderation on Bismarck’s part struck tho Liberal party with surprise and delight, and tho indemnity was granted as a matter of course. And then Bismarck broke with the Conservative party entirely and ranged himself among tho ranks of the Liberals, and his late colleagues dropped out of office one by one as they found affairs too hot for them—for it will be remembered that tho collective responsibility of Ministers is not recognised in German politics, but they are only considered individually responsible for their respective departments.

Such are tho sot of circumstances which the German Parliament probably had in remembrance when it, tho other day, refused to sanction Government patronage to the proposed South Pacific scheme. Although these historical events belonged to Prussia, and not to Germany as at present constituted, yet the moral is the same. Affairs in that instance certainly turned: , out brilliantly for Prussia, but none the less wore the National Liberal party in tho right as far as abstract principle was concerned. They represented tho majority of the people, and should have been heard. The German Parliament has probably no wish that the Government should patronise any : icommercial institution which has groat capacities of development, and hy its means in a time of crisis he able to override tho popular will through tho funds supplied by the said institution. Besides tho general principle that a Government has no right to go. 1 in for trading, it will most likely ho found that Bismarck’s coup in 1865 has had a good deal to do with the refusal lately chronicled amongst our cablegrams.