The Guardian AND EVENING STAR, With which is incorporated “The West Coast Times.” SATURDAY, AUGUST 27th, 1921.

Hokitika Guardian, 27 August 1921, Page 2

The Guardian AND EVENING STAR, With which is incorporated “The West Coast Times.” SATURDAY, AUGUST 27th, 1921.

I i 1J E WEEK. I.oiti) Jkli.icok’s address at Wellington Earlier in the week was a stirring one on sea power. He liegan by quoting from a. recent speech by the British Prime Minister, delivered at the opening of the recent conference of Prime 1 Ministers of the Empire. Mr Lloyd George had said, “We cannot forget that the wry life of the United Kingdom, also Australia and New Zealand, lias been built up on sea- power, and Gnu the sea power is the necessary basis of the whole of the Empire’s existence.” Those words were spoken when ,\li T.loyd George was referring more particularly to the defence of our sea communications in war. “My purpose,” said his Excellency, “is to draw more attention to the use of the sea than to sea communications and their , defence, though defence necessarily follows after they are to be used. I want to draw attention to the vital importance tc| the British Empire* of the finish mercantile marine. Those communications within the Empire are carried out by the mercantile marine. In (rder that you may appreciate the importance of our sen transport } will quote a

feiv figures.” His Excellency declared that in pre war days the United Kingli. n 'uas dependent on sea-borne < ommeree for the importation of two-thirds of her food consumption, and the greater portion of her raw material for industries came l-roni overseas. The v. hole of her cotton, of her wool, and nearly half her iron ore came by sea transport. In regard to Australia and New Zealand. Viscount Jcllicoo said that New Zealand was dependent for the whole of her exports and imports on sea transport, and of her imports HO per cent, came from the United Kingdom and 92 of her exports went to that destination. The total value' in 1913 was about £22,000,000 each. Taking the ease of Australia, the Commonwealth also imported 80 per cent, of her trial imports from the United Kingdom and sent there 60 per cent, of her produce. The values were about £79,000.000 each. Tlio other dominions were in much the same position, practically dependent on sea transport, therefore sen transport was essential for the prosperity of the United Kingdom and for that of the remainder of the British Empire. Si:a transport could lie carried out in two ways .continued his Fxcellency, firstly b.v ships living the Umpire flag, secondly by ships (lying a foreign flag. There were great disadvantages in being dependent in peace or in wait on a mercantile marine living a foreign ensoul. lie would mention a few, Fiist of all freights would have to he paid to pei.pie not belonging to the Empire, to foreigners, and goods would have to !■< prod'oed of the value of the freight to pay for it. because in order to balance trade they would have to export up to that value. The second point was that the freight which has been earned hv British ships trading between different portions of the Empire, which would enable goods to lie carried between two foreign countries also, would he lost to the British citizen. The third poi nt was loss of shipping profits to the Empire. The fourth was the effect on th ( > shipbuilding and engineering trades and the consequent reaction on other industries in itho Empire. The fifth was that in war (which they hoped would never come again) British shipping would not he available for the purposes for which it was so much needed in war, transport of troops, maintenance c.f oversea, communication and provision of additional ships for use i n the Navy. To explain this last point his Excellency stated that in September, 1915, over 1300 overseas British ships were engaged in the service of the navy and army. The limil point wn« that without the British mercantile marine the Navy would lose its most valuable reserve of officers and men in wav. To show this he might quote the fact that at the armistice some 3800 officers and some 16.000 other ratings of the mercantile marine were working under the "White Ensign, assisting the Navy. This was additional to the work of the British mercantile marine during tin 1 war. “Think,” said Lord Jellicce. “Everyone who considers those figures will he forced to the conclusion that if Great Britain had not possessed a mercantile marine to the extent of which it wtis composed at the time of the war, the war would have been lost almost, before it began.

ills Excellency then discussed the question of trading in wartime under a neutral flag, and pointed out its disadvantages. The conclusion, said his Hx< elleiicy. was thill we should have a mercantile marine belonging to the British Empire. He quoted General Smuts to tin l effect that the most important lesson of the war was the importance of the sea communications of the British Empire. He quoted Mr I leva George again that they had to <ook to the measures which their security required. They aimed at nothing more and would not be content with anything less. There were some people who rid not realise the importance to the British Empire of sea power. Titov did not know what it meant to the Empire. He coul'il see no other reason to explain the opposition of such people before the war to an adequate navy. Tt had taken wares of war, tirst, in 1877, then in 1885 to make the pimple realise. There was the scare of 188!) which brought about the Naval Defence Act, and in 1909 the scare without which they would not have been in a. position to bold the sea. against Germany in August 1914. ITe recalled to liis hearers the days of the German raiders. People who had opposed the Navy would-be sorry then for having taken that line and considered the Navy adequate. That was not the opinion of those responsible for conducting naval operations. One of the most important things that lay before the Empire in the future was to inculcate in the rising generation a knowledge of tin* facts about tbe dependence el the Empire upon the sea, both 'as. to prosperity and ns to the foundations of their security it must be'maintained as an axiom that the sea was our life., In conclusion, bis Excellency said it was no use having ships and not having tbe right sort of spirit to man those ships. This was the sea sense, the •'•'l'iidation of our Empire. Witho.it ii •■ <o*i --pno'. iKi Fm"i ,, o corH pot continue to endure.

Tkade conditions formed tlie subject of I nn interesting interview witli a leading 1 Wellington merchant during the week, < who stated that trade was had at @the present time. ImjKirters, in fact, did not know and it was extremely difficult'to gauge, i the various markets. Most firms had been working on an overdraft at (the hank, and financial stringency had compelled them to reduce their stocks in order to bring in the cash required. ! IJusiness was in what might be teimed a “go-as-you-please state.” Replacement cost was not being considered, as it was a case of get money quickly. There was, lie said, a genoral tendency for prices to harden and become more stable. Importers still considered that prices were too high, and were anxiously waiting for a drop before placing iulcnts, consequently purchases were of “a hamkto-moutli nature,” and would continue to be so for some time to come. The rate of exchange was so uncertain and freights were so high that merchants were dubious of launching out until the position was less fluctuating. The conversion of Hie American dollar and Indian rupee was continually varying, and to gamble on the situation might lead to disaster. Gambling had taken place, and to a considerable extent more in respect to purchases from America, and heavy |„«ses had been the outcome. Advice ha'l that day been received from India that the price of tea was of an upward irrade. and other lines were following. To some extent this was due to the rise in the value of the rupee, which has advanced from Is 3’(l to Is old. Tn addition to tea. the goods affected, ns f iM os New Zealand is concerned, were jote and dessicated cocoannt. on which on approximate advance of 10 pe r cent, hod taken place. A cable stated that the cheaper grades of tea had advanced 2.1 d per II). From America, the Dominion imports seeded raisins, figs, prunes, evaporated apricots, muscatels, ord canned fruit, prices for which are firming in America, and have an upward tendency. The conversion of the pound sterling into dollars was easier, ond was now approximately 3.00 dollors to the sovereign, hut it was very unreliable. When purchases of American goods were made, quotations were based on a conversion basis of 3.50, hut a merchant was unaware what the goods word costing him until lie received his draft. The last shipment of goods to arrive from America came by tho Maramn, and the best rate of exchange wa.s 3.53; fin a, number of cases it was 3.4!). which meant a considerable loss to the importer who purchased on a, 3.80 basis. Before the war the conversion rate was of a uniform character, and was 4.80. The rate of exchange as far as Canada was concerned was on a better basis than that of the Cnited States, hut still it was not ct ; ,hle. Tin' quoation basis for pur- , base swas 4.02. hut a shipment of salmon that had just come to hand showed that the rate had dropped a point when the goods left. The difference in the percentage was hardly worth considering, yet still iit affected the price of the goods, hut it was the uncertainty of the position that counted mostly. Continuing, the merchant said that some importers were overstocked in some lines, and were sacrificing values in older to reduce them, while other merchants, who were situated less unfortunately, were receiving more than replacement value for similar goods. In the present chaotic state of the\ financial and other markets uniformity could not be hoped for, hut it was gradually arriving. Most of the manufactured foodstuffs imported into the Dominion came from Great Britain, but the manufacturing establishments in Australia and New Zealand were gradually ousting them from the market. This was being brought about through a. number of Britsh firms opening branches in Australia and Now Zealand, .establishing factories and supplying goods at a less cost than they can he imported for. As an instance, Holbrook’s sauce, Nettle’s milk, and Sertibb’s ammonia were now procured from Australia, instead of from England. Since the war, practically nothing has been imported from Germany in the lines that grocers handled. The trade with Germany in this regard was never of partcular importance, and was mainly confined to tartaric acid mid cream of tartar. Some moronants find received circulars from German manufacturers, hut they were of an isolated nature. There had been also very few shipments from France, and the quantites that had come forward lad been exceptionally small. Prior to tbc war, lie continued, large quantities of dried fruits were imported from the Mcditcrariiean, and some small shipments had arrived since its condttsion. Currants were being obtained from Australia, and on account of the American crop of sultanas having been exhausted, merchants have had to turn to the Mediterranean for supplies; muscatels were also being imported from there. The first important shipment of these fruits since the war was expected to arrive before Christmas—at a price that compared favourably wth quotations from America. In regard to muscatels, the Malaga variety was far in* advance of the quality received from America. It had to he recognised that the spending power of the community had lessened, and was contiruing to wane, and as the fruits mentioned were, tc some extent, luxuries, it could not be expected that the demand would he as great as in pre-war days, or even during the war peViod, on account of the increased price and the reduced earning power of the people.

There is no hoy and there are very few Men whose blood will not be stirred by the romantic possibilities of Sir Ernest Shackleton’s coming cruise in the Antarctic, of which we published some entrancing details in Thursday's issue. Sir Ernest’s feat in pushing, more than <«, decade ago, to within 100 miles of the South Pole marked him out as one of our greatest explorers. Tn his new expedition he intends to examine the Southern Seas, with their remote and rarely visited islands. He will search foi* the vanished land of a New Zealand legend, which is said to lie in this waste of 1 stormy waters, and probe the mysteries of a. quarter of the Antarctic, zone, which has, strangely enough, been left so far unexplored. w r the credit of Britain she must lead in adventure and discovery, and

I diis expedition should contribute r rratly to her fame and to the furtherance if science, thanks to two public-S; irited Englishmen, Mr Rowett and Mr Becker. By their assistance it has been possible to organise Sir Ernest’s cruise of discovery to: Dawn lands for youth to reap, Dim lands where Empires sleep, And all that dolpliined deep AY hero the ship swings.