The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY FEBRUARY 3, 1930. EUROPEAN UNION.

Hokitika Guardian, 3 February 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY FEBRUARY 3, 1930. EUROPEAN UNION.

While the Treaty of Versailles conferred the boon of nationality on such oppressed peoples of Central Europe as the Poles, Czechs, and Slavs, it has become evident that the political advance they have enjoyed has involved some economic disadvantages. The creation of new States possessing sovereign rights has necessarily increased the number of States that are enabled to erect tariff walls. Before the Great -War there were ■seventeen States in Europe that.imposed their own duties of Customs. There are now no fewer than twentyseven.. The existence of small economic units is, however, says the Otago Times, inconsistent with the present trend of industrial activity. The prosperity of the United States is based upon the fact that there is, in terms of the Constitution, internal Freetrade between all the States. This system has encouraged large' scale production and favoured all the economies of mass production and standardisation. The United States is one large economic unit with a home population of over 120 millions. Behind its tariff walls it has furnished, the most signal illustration of a Freetrade

country. But, while there are twentyseven tariff walls in Europe, there is no large home market to be supplied by any one economic unit. Industry in Europe, even including Great Britain, in thus condemned to production | an a much smaller scale and conseqjently \yith a smaller plant worked it a greater relative cost. Out of .he recognition of this fact has sprung the movement, with which responsible statesmen have identified themselves, for the establisfiment, of the United States of Europe, It is a movement that has received stimulus from the heavy pressure of the competition of the steadily increasing export trade of the United States. The leading countries of Europe have been faced with the problem of enabling production, and therefore industry, to be increased by securing the conditions necessary for this development. The difficulty has been to provide a solution that will overcome the handicap of Europe and also be acceptable to the nations concerned. As a first step towards the acceptance of a common scheme of tariffs, Mr William Graham, President of the British Board of Trade, hopes tot arrange with the leading nations of Europe for the observance of a tariff truce for two or three years. Under this truce each of the contracting parties would undertake to refrain from levying Customs duties additional to, or higher than those levyiable on October 1, 1929. The hope is entertained that during this period of truce negotiations may be successfully oonpleted which will practically give the nations of Europe the benefits of a zollverein—that is to say, Freetrade within the countries of Europe associated. It is acknowledged that it will not be easy to bring this about but the methods of co-operation that may be adopted will receive consideration at an Economic Conference which will shortly be held at Geneva—probably next month. An article,, in the latest number of the Round Table discusses fully the whole project a .“The general purpose of the scheme might be that, in view of the natural pendency of industry to develop on a basis of large scale production which cannot be organised except with secure and equal opportunity in markets much larger than those comprised within the political frontiers of many or most States, the contracting States desire to remove the obstacles which at present obstruct such natural development by concerted action; with this object they are forming an association to promote greater and freer economic intercourse, and to secure the substantial, progressive, and, if possible, complete removal of economic barriers betwen themselves.”