The Guardian AND EVENING STAR, With which is incorporated " The West Coast Times.” TUESDAY, JUNE 28th, 1921.

Hokitika Guardian, 28 June 1921, Page 2

The Guardian AND EVENING STAR, With which is incorporated " The West Coast Times.” TUESDAY, JUNE 28th, 1921.

THE COMMERCIAL WAR. Tin: public road a great deal about the renewal of the Anglo-,Japanese Treaty. This treaty was drawn up with the object of formingj a military alliance for the mutual defent' e of both countries against any belligerent foe. Hut there is another war in hand, peaceful in its way, but destructive in its eifei't, if it secures the advantages which tlii' aggressive Power sets out to attain. That war is the commercial conflict which is going on all round the world. 'Trade within the Empire is good for the Empire nationally, and is being encouraged by preference anil in propaganda in every way possible. Hut trade in the main is based on price, and we know that in pre-war days Germany was making tremendous inroads on the commerce of the world, and was amassing great wealth from foreign countries, by reason of the very extensive trade which was being deliberately developed. When the war came, and the blockade cut off the mercantile fleet of Germany, other nations sought to take the place of Germany in the foreign markets where it was known the arch-enemy of the time had obtained a footing. Japan was one of the wide-awake countries to seek to profit l-v the altered circumstances, and was not long in undertaking the task of exploiting the world’s markets. Since peace came, anil the foreign trade of Japan lias shown a. tendency to decline, there has been very naturally a. very strong effort to retain the hold secured in outside markets so that the potential trade of the country will continue to flourish greatly, and Japan enjoy a further reign of industrial prosperity. Naturally with Britain free from the immediate peril of a. military invasion by Germany, lias since peace was initiated been aide to turn more attention to trade concerns, and to seek to hold and

to recover lier former outside trade lost or tampered through the war so as to secure her commercial and industrial supremacy. But all the countries are active in this commercial campaign, and the war will go on, and no-doubt in due time help to foroedown prices lor many commodities in which thero will be the greatest competition. Dealing with this subject art English commercial journal points out that while I In- British Government by means of anti-dumping legislation is proposing to safeguard English !<ov uidnsiiia-. an | to promote the rale of Britt-’h

goods in the home market, Japan as well as Germany, is making great efforts for the expansion of her foreign trade. An idea recently advanced hv the Governor of the Hank of Japan, and which has been approved by malty ’ aiding .Japanese business men is that as a most effective means of remedying the discouraging condition of Japan’s export trade there should he a reduction in the cost of manufacture by adopting the system of greater production and the supply of goods at the low e«t possible price. For this purpose a strong combination of manufacturers, exporters, shipping and insurance concerns is contemplated—a plfth for organizing sut'h a combine having already been prepared and will he'effected before long. In short the present scheme is based on (lie principle of the Gm-mali kartel, and the idea is practically to organize a kartel for export trade. The system of kartel, explains the Journal of the Yokahama Chamber of Commerce, is a systematic invasion of foreign markets which may, ofDmrse cause some prejudice abroild. It pbints out, h'OwCve'r .that since the development of export trade is the fundamental basis of national existence a clear understanding of foreign Governments should he obtained in that respect and could he procured if proper measures were adopted, lie that us it may, there does not, on the whole, seem to he much for the British manufacturer and exporter to fear from this Japanese scheme. The chief characteristic of .Japanese goods is cheapness, in the attainment or which both ijuality and dunihility are frequently negligible t;u--tors, and if the policy of low-priced goods is more than ever to he kept in the forefront there is not much room for an improvement of conditions that, have to a large extent brought about a serious diminution in the demand for the products of Japanese industry from the more prosperous nations of . the world. China and other markets, where the people’s needs are' simple and tlm purchasing power of the community low. may provide scope for Japanese trade expansion, hut it mav he doubted whether the manufacturing interests of the United Kingdom will suffer to any very appreciable extent: