OVER-CONFIDENCE WEAKENS

Otago Daily Times, Issue 24227, 20 February 1940, Page 16

OVER-CONFIDENCE WEAKENS

t The facile assumption that the stringency of the blockade on Germany will be as effective now as it was 21 years ago would mislead and ensnaie the incautious, says the London Observer. In the former case Germany and the territory she controlled was surrounded by enemy territory except for Switzerland, Holland, and the Scandinavian countries. To-day. by contrast, except for France. Germany is wholly surrounded by neutral ’ countries ' She can trade and obtain foreign exchange from the Scandinavian countries Holland. Belgium. Switzerland, Italy. Jugoslavia. Hungary. Rumania, Russia, and the Baltic States. The exports seizable by the British Navy are those only which attempt transit on the high seas. There is a sternly practical difference in the modern instance. It is. therefore, a matter of elementary strategy that we should scrupulously estimate both our own and the enemy s potential resources, and act betimes. The fact is that our own resources are not what they were. Our balance of payments in foreign trade is heavily down, our indebtedness swollen, our reserve of purchasing power in American and other securities depleted, the door closed to American credits. The dominions fill part of the breach. Our object, formidable but achievable, is to make such use of our existing resources that the economic weapon shall bs irresistible. To count upon the enemy’* weakness is to be weak oneself.