SUNSHINE AND SHADOW.

Hawke's Bay Herald-Tribune, Issue 11, 28 January 1937, Page 4

SUNSHINE AND SHADOW.

In our own little country it is manifest that every effort is being made by those in political high places to create a "boom" atmosphere and promote spending, both public and ' private, on a more or less extravagant scale. On the other hand, we find those in responsible leadership in the Old Country issuing warnings to the public against allowing themselves to be carried away by such signs of prosperity as have so far disclosed themselves. They are all glad to acknowtledge that there the foundations of an era of sound prosperity have been laid. At the same time, however, they deem it their duty to point out that building up on that foundation may easily be subjected to serious interruptions and deterrents over which Great Britain alone can exercise no control. The outlook in the Motherland is ±or the time being quite bright, and from it we here of the oversea dominions are beginning to enjoy some of the reflected rays of sunshine. So long, however, as the international situation in Europe re-» mains in its present uncertain and disturbed condition there must always be dark clouds hanging on the horizon. There are certainly some symptoms visible of the possibility of better under standings being reached, but as yet they are by no means definite enough to give assured confidence. The goal towards which Great Britain has for so long been working, permanent pacification of the Continent with the restoration of pre-war freedom in international trade, is still only dimly seen. Wonderful as has been Great Britain 's advance towards economic restoration, it cannot but be recognised that even she has a long way to go yet before she can be said to have retrieved her old position in the world 's trade. In fact, it may well be thought that this is something impossible of accomplishment and certainly is so under the conditions that hold at presentThe self-sufficiency to which so many nations have aspired has taken such strong hold, not only upon their rulers but also upon their peoples, that it is going to be a long and difficult job to bre&k down the protective barriers they have raised. That difficulty becomes almost an impossibility until there is some appeasenient of the bitter feelings and mutual hostility and suspicion which possess so many countries. At the moment, as has been said, there seem better prospects than for a long time of some amelioration in this respect, but it cannot yet by any means be said that they are anything more than hopeful. Just at present perhaps the most important movement is the closer approaeh between Great Britain and the United •States of which we have had some recent evidences. The visit of the president of the British Board of Trade to Washingion is obviously not the casual affair it was at first vepresented to be — probably to guard against any possible disappointment as to its results. Seemingly, however, the welcome has been entirely cordial and, this being so, we are allowed to understand that the visit has something more than a mere social significance. It would, of course, be unwise to draw any over-sure conclusions from the little we have so far heard as to the Roosevelt-Runciman conversations. But it is quite in keeping with the change of policv which the American President and, still more definitely, his Secretary of State, Mr. Cordell Hull, have been for some time been foreshadowing. If America, which has for so many years pursued a proteective, almost prohibitive, trade policy, makes virtual acknowledgment that, despite vast internal resources, it is a mistake, tlien there can be no telling what the influence may be upon other countries by no means so well placed. A reasonably free trade understanding between the two great English-speaking industrial nations might well provide an almost compelling example other nations could not but follow. With the consequent revival of international trade might easily come a revival also of more friendly international feeling, for international trade conducted on fair lines is a great lubricant.