TRADE AFTER THE WAR.

Taranaki Daily News, 12 January 1916, Page 5

TRADE AFTER THE WAR.

ALLIED ZOLLEVEREIN SUGGESTED. TO CRUSH ECONOMIC GERMANV. By Cable.—Press Association—Copyright Received Jan. 11, 1U.30 p.m. London, Jan. 11. Air. \V. Tlewins, in moving a motion on the lines, cabled on December 1!), said it did not imply censure of l:!ie (government, but mainly aimed at suggesting methods to shorten the war and injure Germany's economic policy as much as pussihie. The key to Germany's diplomacy was not the political hut the economic subjection oi' Hie countries -lie now occupied. The Government -hould fully and frankly net upon the resolutions adopted by the Imperial conference, and there should be a further conference of Empire representatives to consult as to ways and means to cheek German designs. ' We should see that the resources of the Empire over which ri; had a monopoly should no longer be exploited in the" interests of our enemies. Although it was impossible *nd undesirable to attempt to realise an economic Zollverein of the Empire and the Allies, it was possible to make suitable arrangements with those countries. Nothing would so discourage Germany as to make it clear, when the war is over, that the securities which are the basis of her paper currency will never have a chance of recuperation. When Germany understood that we had taken such action it would be a material step towards shortening the war. Mr B. E. Feto, in seconding the motion, said that steps should be taken to arrange with the Allies a policy based entirely on now treaties, and they should also consider the position of neutrals ami the position we should assign our enemies.

Sir. A. Mond said that the war was due to the ambition and imperialistic ideas of Germany, regardless oi. economic and commercial considerations. No ampunt of legislation, tariff jugglery, and treaties would deprive Germans of the advantages of their encouragement of scientific and technical knowledge. England's banking system was the greatest bar to industrial development. The most serious competition after the war would come from- America, not from exhausted Germany, which with a large, proportion of her population gone, and her finance in a deplorable condition, could not flood 'he world with goods, Mr. IT. Chaplin said that in 1!)13, 4S per cent of German exports # >nt to ourselves and the Allies, and therefore we had enormous power if we thought fit to use it.

Other speakers urged the' Government not to treat the discussion academically, but give the Empire and Allies aUead. Mr. Riniciman, in reply, said that notwithstanding the fact that imports had gone up. experts had gone down. The. economic strength of the Empire was so well founded that we had stood the strain better than the Central Powers, l.i was clearly by economic pressure that we would be able to persuade the German

Government of the fruitlrssness of coniimiing the struggle. We must dismiss the idea of free trade within the Empire, but we are not prepared to altogether dUmiss the idea of a Zollvcre'in including the Allies. Tha difficulties, however, were very great. Tf a Zollveveiu between the Empire and the Allies would end the war we should have a Zollverein, as we are prepared for any arrangement to bring the war to a successful issue. The House agreed to Mr. Ilcwins' motion.

[A London cable m December Ift snid: ill - . W. Howins. M.P., chairman of the Unionist Business Committee, said that tlio whole Herman economic fabric was based on the Central European treaty system. Seventy-five per rent, of the German trade was done with local European treaty Powers and the British Empire. German war finance was based upon (he secure possession of this trade. Germany would lie horrified it the British Empire announced (hat she was determined to make the impossible in future. There would be a panic if Germany was convinced that the rrv.iuvf'S of the Empire in future would be asod for the benefit of the British Empire. The fear would naturally r-hri'ten (lie war. The Empire could do this by making it clear that Britain after tiie war intended to use her power for bargaining. This would force Germany to consider her conception of the most favored nation clause. The visit of Mr. Hypltes to London in the new year would give a nucleus for an Imperial Economic Conference for the purpose of taking immediate action. Sir R. Borden could easily attend, and South Africa could be represented. The conference should take the initiative in fixing a tripartite tariff, giving preferential terms for the Empire, a revenue tariff for the Allies, and a penalising tariff for enemies. Mr. Hewins added that he understood the British Government had already communicated w r ith Australia and th'e Dominions concerning some problems which could be discussed at such a conference. Among these were the destruction of German influence, including the control of the Empire's metals by aliens, organisation of Imperial food supplies, and the possibility of framing a British Imperial navigation system.]

PRODUCTION OF METALS.

SUPPORT OF TIIIC DOMINIONS. Received Jan. 11, 11.15 p.m. London, .Tan. 11. Mr. Ranciman, referring to free trade within the Empire, said that the policy of tiie Dominions was not likely to bo modified. They were determined .to raise tlieir revenue in their own way, and must therefore dismiss the idea of free trade within the Empire. Reference had been made to the production of raw material in the Dominions. The control of metals bad years ago passed ito Frankfurt, which dictated°the production of metals even in the Dominions. Australia went to the length of cancelling by legislation every contract in which a metal organisation at Frankfurt was concerned. Regarding metals, nothing could be more wholehearted than the support given by the Dominions. Consequently wo have an abundance of manganese, tungsten, and wolfram, while the production of spelter was increasing. The Dominions had shown ti wonderful spirit, and lie believed that any which would arise during discussions in London would meet with the same warmhearted reception. AVe are mobilising the whole economic strength of the Empire during the war. He did not believe we ought to do everything in our power to injure and ruin German finance, we should cripple, cramp, squeeze, and destroy her trade. The Board of Trade were looking ahead, as peace might come very much sooner than some people expected. The real trouble would be when the war ended and Germany was boaten on sea and land. We might wish to embark on a new economic campaign, and it was necessary, when making peace, to sco that German? did not raise her head,