The Guardian And Evening Star, with which is incorporated the West coast Times. TUESDAY, APRIL 2, 1929. WORLD TRADE COMPETITION.

Hokitika Guardian, 2 April 1929, Page 4

The Guardian And Evening Star, with which is incorporated the West coast Times. TUESDAY, APRIL 2, 1929. WORLD TRADE COMPETITION.

.UK real war, we are told by students ~1 economics, is to be a tr.ide or nuance ,* jir. i Ins oi course is based on tin* nieories propounded by studying the ~i/i id s money lnai'Ket and tlie balance ■>i iraue as at p.csent. .1 lie two lactjrs in relation to unemployment m tidier countries supply the limit as to .at nre possibilities. In particulai, .mei’ica is being warned as to wlieie ,ne present day prosperity ol ! the Unit.l .states is carrying the country. A .orrcsp.nidcnt writing lrom San ifran.sco iast mouth refers to the matter .a a special communication. He says: . lacing a '“danger” sign on the “unprecedented prosperity’ 1 attained by L.ie united States in the past ten years, dir James Arthur Salter, K.C.B, direc-

~>r of tlie economic and finance section of the Long lie of Nations, uttered ,i warning in Philadelphia that in the ..0..L ten years the “greatest” trade ompetition the world has ever known” ~i!! spring up, as Europe seeks to ..u.n America's monopoly on foreign .rade Another world eonlliet is even ilireatened as the result of this spur . ) international commerce, the distinguished Englishman told members of ihe Foreign Policy Association of Phila_ ..olpliui. He indicated that the first up) in commercial self-defence taken • v the lotintries of Europe will lie the adoption oT high tariffs against foreign goods, a step which may result in ‘'internal ri its and revolts” in those ountries, the speaker indicated. Sir James declared that the only hope in warding oil' a war caused by international trade relations lies in evolving an “international code of trade ■tliics.” He asserted that at present deli nation is “going on its own in the matter of trade policy and is formulntig trade principles that are proving highly offensive to other nations.” hough the speaker declared lie would ot comment upon the tariff situation in the l"nited States, he intimated that high tariff defences in Uncle Sam’s doDiiins were targets for the combined animosities of the lands lying oil the other side of the Atlantic. “If Europe •etorts to America with similar high tariffs and restrictive trade ethics I remhie for the future of the world.” Sir .James said. “Such a situation would undoubtedly cause internal inutislrial riots and revolutions in the nations of the world. In the next ten years there will be a period of intense competition between foreign markets. T da not fear if as tilings look' row. Hut if one country after another takes methods that are offensive to another country, what can internal law do for peace?” Sir James pointed out that America’s rapidly growing prosperity has meant to the whole world a greater total measure of prosperity. but lie indicated that the danger lay in the attitude taken by individual nations The speaker strongly pressed the fact that “exchange.” or a balance between the imports and the exports of a nation, is a most desirable condition for world prosperity. He indicated that nations have tried to tamper with this “give and take” of trade by failing to act as referees in the industrial contest and jumping in and “aiming blows at the contestants.” He pointed out that these “blows” are in ilie form of protective tariffs and subsidies. “Friction is growing daily between the nations of the world because the ocnotnic situation caused bv iheir important export situation is having a profound political inlluenco on llicir governmental policy.” lie continued “The most important proposition facing ns is the formation of a world code of trade ethics. At present 11a-

tions that outwardly want peace arc g‘>j n „ iheir own independent way so inr as their commerce rclatoiis arc conerned. F.veiy nation Inis its own po,icV and no fundamental international principle' of trade custom is being observed.” Sir James turned bis attenion to tlie causes of American prosperity. He held up the intcr-State commerce carried on in the country as ,i le of the most powerful reasons for the finan.'ial soundness of the country, tic drew an analogy between the freedom from trade restriction existing between 'the -18 States, a condlTTon which has built up America maternuTy, i.e said, and between a similar condition which should ,e..ist between nations. He indicated that if nations observed this same principle of free interchange of goods, the individual producer might suffer temporarily, but ilie nation as a whole would prosper to an extent infinitely greater than if-tariff bars are maintained.