The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, MARCH 27th, 1924. TRADING RELATIONS.

Hokitika Guardian, 27 March 1924, Page 2

The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, MARCH 27th, 1924. TRADING RELATIONS.

Assuming that the reparations are now on a fair way to settlement, it must not be concluded that an agreement heinß reached, everything will then go well, and ail the world will be safely at peace. Although it is hoped such a settlement as is in the air will come to pass, and be instrumental in ending the aftermath of the war tension, there will be other aspects of a. disconcerting nature arising. It is not Unlikely for instance, that a peace settlement for Europe so far as the maintenance of military forces is concerned, will necessitate n serious disturbance in trading relations. In point of fact, a state of commercial war might quickly bieak out, and then the countries will bo face to face with fresh economic problems. These however, will be less formidable than the present tension which is sapping the life blood of so many countries. But tho problems will not bo of a light or airy nature and will not bo solved with any simple readiness. Trading problems will arise of

consitloiable magnitude. Germany once unfettered will be a. formidable opponent in the commerce of the world. In pre-war days she was on the high road to great commercial and industrial prosperity, and her captains of industry know the' game well. German goods will be Hooding the world for a considerable time, and as they will he sent far and wide at cut prices, they wili cause ordinary commerce and intercourse much dislocation. Xo doubt if the reparations are adjusted under the scheme now evolved', some of the countries will endeavour to meet the possible trading conditions with tariff barriers or preferential customs* rates, hut Germany will he too intent on exploiting the world’s markets to he seriously baulked by such tactics. Production in Germany has long been known to be well organised, and in any case has to assail high prices. This will make

tier task the easier ami modify the difficulties of customs barriers. That is, her cut prices plus customs duties will still )>e below the reigning high prices prevailing for many commodities, and the German goods will get in. They will come in in quantities for the cheap er rate will cover only quantities, and so they will swamp the markets for some time to come. The workers of Germany have shown what can lie done in mass production, and the business acumen of those directing production has been remarkable for its organisation and management. These factors are well known, so'that , in respect to any possible surprise, Germany is not likely to steal a march. Indeed, the possibilities will be well-known and can

be appreciated. That fact is the best hope of a countering effort being made, if not to anticipate German trade, at ieast to counteract it when it has free play the world over. The markets of tho world are far flung, and there will lie ('yeat scope for action. This facility will be helpful for it will not bo known till the action is taken where the opposition will be keenest. Germany will lay her plans well. In that regard the facility for organisation will play its part and it thus becomes a case for business ability to fight out the trading issue which will overcast the commercial world. No country is likely to escape the attack for all offers a field for exploitation, and as Germany must have trade, her sacrifices will not be with-lield when circumstances demand it. Tile one consoling aspect of the prospect is the fact that German trade means in the end cash for the Allies and the recouping of the drainage period of the war and alter, Jiaile will he lost to the Allies, in many instances. hut it is an economic necessity that this should he so, il in the cmi Germany is to nay what she is called upon to find to satisfy the reparation demands of the Allies.