The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JULY 29, 1930. EMPIRE AND WORLD TRADE.

Hokitika Guardian, 29 July 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JULY 29, 1930. EMPIRE AND WORLD TRADE.

] n the cable news on .Saturday, it was indicated that Australia was not disposed to favour Empire trade, but would continue to grant preference to British goods. Just at the moment, Australia is using its tariff with a double purpose: (1) where it can, to secure additional revenue and (2) to foster local industries, by shutting out imported commodities from any country. Mr Soullin is seeking to bujld up industries for the benefit of the employment they will create, and so remove one of the greatest difficulties presented to the Government at the moment. But there is at Home an j influential movement towards Empire free trade, and when he journeys to i London shortly for the Imperial Com- | ference, Mr Scull in is sure to have his , principkrt attacked in the hope 1 }■ j may surrender to the larger idea of | Imperial unity in customs tariffs. But ivhether he will succumb is another [uestion. The Prime Minister of Australia is proving a man of determination and having put his hand to a certain policy iu what ho believes to he

the best for the national interests, it will ho extremely difficult to alter liis course. The campaign in JJ riain is on ddinitc lines, and is well supported. It has occasioned niucli apprehension and anxiety in econcm.’c and cummer ial circles abroad. In France the Ministry of Commerce has adopted an attitude of “watchful waiting,” but its e.perts have already intimated that the new policy may “menace the economic security of Europe.” In Germany, a prominent member of the Reichstag has suggested that any change in Britain’s fiscal policy may react injuriously upon the whole Empire. But at this . same time lie hints that the .separate trade agreements made by the'Dominions with Germany may bo imperilled, and be even fears that Imperial Reciprocity may mean the exclusion of Europe and America from valuable sources of raw material which they have hitherto been able to ■ exploit. It may be pointed out says an exchange, that both these criticisms imply, on the one hand, an admission of the immense value of Britain’s markets. The Germans in particular are extremely anxious that Britain should maintain the existing fiscal system, and this in effect means that so-called “free trade” is beneficial to them, irrespective of its effects on Britain. As to the reference to Germany’s trade aigre p monts, this may serve to rtrail the bitter controversy stirred tip bv Ontiada’s original offer of preferential treatment to Britain. When it became evident that Britain was gaining ground in Canada’s markets thirty years ago, as a consequence of the new Preferential Trade system, the German Government tried to coerce Canada into granting similar concessions to German goods, 'and even threatened to bovcott Canadian goods in German markets unless the Canadians acceded promptly to their demands. But Lord Lansdowne and -Vlv Chamberlain then notified Germany that Britain would not tolerate any interference in the internal affairs of her Empire, and that any attempt on Germany’s part to penalise Canada for granting trade concessions to the Mother Country would provoke vigorous retaliation. From that time onward foreign governments have wisely refrained from remonstrances against Preferential Trade, which, from the standpoint of’Britain and the Dominions, is merely a mutual adjustment of their own domestic affairs, No doubt the protectionist countries have been compelled to. feel that any attempt to exclude them from the Empire markets must injure their trade, but it is not easy to see what they can do to defend themselves. They can hardly retaliate effectively, for most of them already exclude from their own markets the "•cods which they can produce for themselves. But Britain, on the other hand, if she were to complete a system of Imperial Reciprocity by putting on protective duties against foreign goods, would at once supply herself with a weapon which would secure for her products better treatment in foreign markets than they now receive.