THE SNARE OF VICTORY

Hokitika Guardian, 18 June 1921, Page 3

THE SNARE OF VICTORY

(Wimble’s Reminder) When the German threw down his rifle and signed the Armistice lie tried his hand at revolution, and after some success and failure in this direction lie started work. He lias been working ever since. In most trades lie works ten hours per day, in none less than nine. By judicious gaoling of people who tried to make extortionate profits out of the sale of food, he succeeded in foreing down the cost of living, and so cheapened his cost of production,—a process iii which he was assisted enormously by the rate of exchange. He was still blockaded, but went on piling up manufactured goods against the day the blockade would lie lifted. When tlie Briton threw down bis victorious rifle be went on a jamberee of wild extravagance. Labour leaders lost their own heads and all control over those of their followers. Wages were forced up by gigantic leaps, and the cost of living rushed upwards with them. The cost of everything rose inordinately—fuel, food, rent, clothes, transportation and labor. Coal that had been retailed at 18s per ton in 1914 had Soared to £6 l()s at the pit mouth.Britain lost- iier coal trade with Brazil, Uruguay, Norway, Italy, Spain, France, Holland and Denmark. It

went in a single night, as,it were. The

coal miners and owners didn’t seem to care—they raised the price some m/i’re on tho British consumers, and dashed the national welfare. British ships changed over hastily wherever possible to crude oil fuel. The railway companies experimented with oil driven locomotives. Factories and etigineeriig establishments closed down, as the price of coal was prohibitive. Before anyone realised the boom was over there weVe a milliorl unemployed on tlie Government books, receiving unemployment doles. With this mad jamberee of high prices the markets of Britain were left wide open to the dumpers of the world. German goods poured into Britain frotil the moment the blockade was lifted. Tlie British gold the Gormans received ior their goods was worth 12.) times as much iii Germany, so that when a German sold an article lii Britain for £2 tlie two sovereigns were worth £25 td him in Germany for the production of cheap goods with which to swamp the lutted Englander’s market, and put the mail who had conquered him oiit of work and business. j

Meanwhile they talked iii England of protecting Key Industries. While they talked factories kept closing down. Then the manufacturers of the U.SA. having over-produced for their own requirements, pdurikl vast consignments of goods into Britain, eating iifl what trade the Germans had not yet gobbled. During the great slump in the U.S.A. that set in at the beginning of September last, the manufacturers of the U.S. A found the British EhipirC and China b v * far their best customers.

What happened in Britain : s going to occur here in Australasia, and is actually in process now. Our industries are being swamped by large consignments from Germany and Japan. In Germany the old Kartel system of export is again in full blast, and in Japan the Government has created a special department to assist ill tire development of foreign trade—that is, exports to foreign countries. Despite the embargo on money leaving the Commonwealth of Australia enormous consignments have arrived here, sufficient in many cases to satis-' fv all requirements for over a year in particular lines—with a view to preventing Australian manufacturing industries getting any benefit froin the high, strong tariff that 'is universally believed that Australia will adopt during tlie present session of the Commonwealth Parliament.

The question of payment was got over very simply. Australia to-day boasts the privilege of sheltering quite a large number of special representatives of factories in Dai Nippon, Germany, Britain and America. . These gentlemen are armed with powers of attorney, and they collect the payments as they fall due—most of the terms of credit are long—bank them ,and use them in the purchase of supplies of raw material which it may stilt the overseas manufacturers to Import from Australia. Foreign money or Australian money held by foreigners in exchange for goods can be banked on fixed deposits in Australia as well as anywhere, and as exported goods are necessarily surplus goods, the money simply becomes a reserve fund to bo drawn on immediately the embargo on the export of gold is removed. I’ll is is one .of tlie problems that will face our tariff makers, and one, which, if it is not adequately dealt with, will go far to nullify our tariff, and in many cases actually postpone its protective incidence for a year, or ever more. Tlie only visible remedy is to impose a War Debt Reduction Duty on -all imported goods sold after a certain date the word “sold” being defined as retailed. Canada lias a somewhat similar duty on the sales of all goods, but for Protective purposes and to beat the gentlemen who have beaten and nullified our tariff by anticipating it, it -should in Australia be imposed upon foreign made goods only.