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Hokitika Guardian, 18 March 1920, Page 2

Ocourse, it is not out of regard for any tender considerations for Germany that the Supremo Council taking benevolent action in tile matter. Beonoinic conditions are disturbing all over Europe, and Great Britain lias her portion—rather full and flowing over. Britain as the dominating Power of Europe is looked to in peace no.iv, as she was in war, to liolp the weak. She fulfilled that duty in the war unselfishly—to her greatest glory. She has done her duty in peace times with unstinted generosity. Her financial help has been given to such an extent that she bus crippled her own resources, and for tile time being she is relatively poor in pocket. England with all her wealth and power is in straightened circumstances and she is exercising herself aim pressing upon her people, the need for an economy campaign. An economy

campaign has been launched in Britain. The Government have at intervals called on the people to curb their private extravagance. Now the people in turn are calling on the Government to end their wasteful public expenditure. Over both parties hangs the shadow of a capital levy. The Government dread it because it would be, uni popular, and would probably mean their I demise, even though their successors might have to “carry on the good I work.’’ There is no need to state the reasons why the people dread it. Ihe ! position is that of anxious parents, a ' sick child, and a dose of castor oil—--1 which can best be summed lip in the I phrase “Get it over.’’ Lord Peel, in the Lords recently deprecated gloomy prophecies, and said that the situat on ■ was improving and could not be des-

' eribed as unsatisfactory. How acute j it is may be judged from the suggestions tor the sale of some, if not all, of Britain’ West Indian possessions, to America to liquidate our huge indebtedness to that country. Mr Lloyd George received an ovation in the Commons by scouting any such idea. Such a ■ apitulation to the Monroe Doctrine would alarm Canada, to her vitals, and would profoundly affect the psychology of a far-flung Empire, nurtured on the traditions of Drake and of the Navy since the days of the Armada. A nation’s soul, comments the'Dunedin Sto", would go into the melting-pot. It is clear that Britain’s huge debt to America is just now overshadowing the financial position of the world. Ihe dislocation of exchange is having fsureaching effect in all the markets of the earth, and Britain has got to fight her way. through. She will do so. 'the reapproacliment .between America and Britain, apparent in the later stages of the war, dioes not loom so Large now. Before the war there was distrust of Ur tain in

the United States in Great Britain. This mutual distruct is much to be deplored, tor with unity of action and confidence in each other, the United States and Great Britain could solve the world’s troubles very quickly if they got intimately together in the right spirit. It would appear that the United 'States is out to rival and outstrip Great Britain in all the fields of national life, and endeavour to become an all powerful nation within herself. Britain has to fight her way hack to sound economic conditions and to that larger life she has unselfishly sjiown where/by she was ready to help the weak without pressure and without arrogance. And she - is winning through. Britain, according to the ‘Economist, is swiftly regaining her position in the world of manufacture and commerce. That authority stated at the end of 1019 that trade returns showed I hat, mi the actual exchange of goods, Britain had reached a point where she was paying her way as a nation by her own efforts. This was done, too, despite an unprecedented demand for home consumption, due partly to the post-war wave of extravagance. Thus Britain has already restored the equilib ium gf her foreign trade, and should now go

ferwnrd to rebuilding her position as a world-creditor which she held before the war. Thus, as Viscount Peed gays, the situation ciinnof be described as unsatisfactory; but there remains tile Hicjtfeiu of that. 4.000 million debt to America. Strict economy will have to be the watchword for the whole Empire. It will be the ’ problem of all economists and financiers to harmonise .this ivith a policy of progress, involving reproductive expenditure. Between the extremes of stagnation ami. .extravagance a safe middle c o,irs<> must J | -' found.