The Guardian (And Evening Star, with winch is incorporated the West Coast Times.) FRIDAY, NOVEMBER 10th, 1923. EMPIRE DEVELOPMENT.

Hokitika Guardian, 16 November 1923, Page 2

The Guardian (And Evening Star, with winch is incorporated the West Coast Times.) FRIDAY, NOVEMBER 10th, 1923. EMPIRE DEVELOPMENT.

Wk should like to know a good deal more about the plan of the Economic Conference for ensuring that money found for Empire development shall be spent on the products of English industiy (says the Auckland “.Star" editorially!. It i> proposed that if the British Government advances money for public walks overseas, whether these are under State or private management, np to three-fourths of tho interest shall he waived for five years, in return for which the borrowers shall undertake to place orders in Britain. This is an extension of the idea in a post-war Act l\v which the British Government. in order to stimulate trade, guaranteed loans lyr State and private enterprise. A large total was so guaranteed, but we have not seen any proof that this measure substantially benefited industry. The new proposal ?r i»r attempt to se?\vre tta* British wpd

ket. for oversea enterprises financed by British immev. This reciprocal process, of course, has been lung established, and it applies to foreign countries as well as the Empire. Britain lends capital for development abroad, and the money so spent stimulates the demand for British goods. The conference s ) Inn is nil attempt to regularise this process and extcn.l Its scope. I’art of the idea is to encourage tho immediate undertaking of works that would otherwise not. lie put in hand tor some years, thus giving a stimulus to British manufacture in its present depression. The plan is a constructive one, and may he very useful, hut it is easy to expect too much of it. Already the dominions give a great deal of preference to the Motherland in tlui* liekl. In the supply of material for Arapuni, for example, not only dees the British manufacturer get the heneiit of our preferential tarill, htiL it has been decided that if for tlie* same woik a loreigu tender is presented that is not much lower than a Biitish. the British shall he accepted. We should benefit under the proposed scheme by being relieved of a portion of interest charges for five veins - a period which with most public works would cover the non-earning pei ied of construction—hut it is a question whether a prosperous dominion should accept much of this sort of help I rum the burdened Motherland. Ihe rebate in inteiest will Ik* paid by the British (invernmeui , that is by the liritish taxpayer. Grom the point of view of Britain it i- a legitimate move. The rebate is an indiec.-t- Mili-idy to industry, and if it lie objected that, subsidies aIV 1 wrong, it may he replied that t the nieseiit time many millions are being spent in another form ul indirect subsidy- unemployment relicl. At il- - anv cost the terrible body of unemployment. should he reduced, and a subsidy stu b as the conference proposes !ia> the merit of ) roviding work and thereby cxetcising a moral as well as a material intluencc*.