WELLINGTON NEWS

Hokitika Guardian, 20 November 1931, Page 7

WELLINGTON NEWS

b WITHIN THE EMPIRE, i (Special Correspondent). WELLINGTON, November 16. By hoarding gold and disturbing the (finances and trade of the world and particularly of the British Etnpire, the United States and Prance have done the Empire an ‘inestimable service, for they have succeeded in stimulating the desire of the component parts of the Empire- for British trade within the Empire. The two countries which have been hoarding gold were to some extent, unwilling recipients of the metal, at least that can be said for the United iSlptes, for the war debts and high prohibition taiiff made the flow of gold to-the United States inevitable. France too, because of the enormous amount ■she had to receive from Germany in reparations, was in a strong position to attract gold. The possession of huge stocks of the yellow metal have not helped those countries, for both aie suffering, from economic distress, Both Ifind their export trade diminishing ; both have disclosed heavy Budget ueffdits, and both rare being somewhat seriously troubled with unemployment. The representatives of France ana the United States have conferred, and must know now the . full measure of their responsibility for the -world depression. It will be noted that Germany and France are endeavouring to reach an understanding, and the negotiations are said to be proceeding satisfactorily, The reparations payable by Germany must be greatly reduced if they are pot wiped out altogether, and whatever happens to reparations must also happen to war debts. The first Step towards the new era is the under, standing between Germany and France, for this seems the key to the whole situation. But whatever happens it is not likely to deflect the Empire from endeavouring to reach a plan of inter-Empire trading. The Imperial Conference called by Canada cannot be held before July next year, and a good many things may _happen before then. The Peace Conference of the League of Nations is to be held in February, and as about 35 nations have already subscribed to the [Armaments Truce the prospects for the Peace Conference registering some tangible success are Bright. Once the nations can be induced to co-operate on one important matter, co-operation on others would not be a difficult matter. The tariff problem lends itself to international co-operation, and if this is brought about it may -affect the Imperial Conference, but that is a remote possibility. The National Government in Britain is now engaged on the serious task of balancing the trade, and we are on the eve of witnessing free trade England adopt a measure of protection. Imports are to be restricted, that can be done J only ’by imposing a tariff. Once a tariff is in operation the Dominions could easily arrange for preferential treatment. New Zealand is bound to benefit, but it remains to be seen to what extent any reciprocal arrangement between Now Zealand and the Mother 'Country will affect our secondary in. dustrics, which all the candidates wooing the electors seem anxious to foster. Viewing all the recent world events it is very apparent that 1932 will see a changed world. The current year has been so full of distress and tragedy for all the nations, that they will realise the futility of harbouring suspicion, and will co-operate for the common good, The Empire will for certain have some sort of co-operation that will enhance the importance and the prestige of the Empire and knit the parts more closely. Trade within the Empire w'ill be a guarantee to all the nations within the Empire of a stabilised prosperity,' and the prosperity of the British Emp:re will react on other countries.