The Daily News. FRIDAY, DECEMBER 8, 1916. FINANCING TRADE AFTER THE WAR.

Taranaki Daily News, 8 December 1916, Page 4

The Daily News. FRIDAY, DECEMBER 8, 1916. FINANCING TRADE AFTER THE WAR.

It is a settled policy that after the war has ended there shall be no more trading with t,ho enemy, but that Britain and the Dominions will use every enjavor to eajjttire Ids® the trade

within the Empire heretofore in German 'hands, and also extend it to other parts of the world. Manifestly such a new development cannot be 'carried out without organisation of the highest and most effective type, and it is equally clear that the fulcrum must be adequate financial backing. Recognising this, the British Government appointed a Committee, with Lord Farringdon as chairmail, to report 011 this important subject, with the result that one of the most far-reaching schemes has been outlined to the British Board of Trade, the main feature being the creation of a huge institution, to be called the British Trade Bank, with a capital of ten millions, to fill the gap between the Home banks and the colonial and Bri-tish-foreign banking houses, with the object of developing facilities not provided by the present system. Germany's vast trading machinery was built up on a system whereby the banks took an pc-tivc part in fostering all sorts and descriptions of enterprises, good, bad, or indifferent, in which they saw, or thought they saw, clwnces of profit. Another aid to German trade was Government subsidies and special protection of German interests. There is 110 Idea in the British scheme of copying the German method nor of competing with the banking houses in anv wav, liie new institution confining its operaLions to the development of trade -and opening current accounts for parties who are proposing to make ,use of the overseas facilities which it would afford, having a Credit Department for the issue of credits to parties at Home and abroad. It will work in close conjunction with the colonial and Britislitoreign • banks, and its Foreign Exchange Department will be extremely beneficial. One of its most important features is the establishment of a highly-organised Information Department, the need for which is generally admitted. Too much importance cannot be placed 011 this Department, for its possibilities in trade expansion are illimitable. >ot only could advances be made for the extension of manufacturing plant, but for the co-ordination of works so as to reduce the cost of production. This qtiestion of cost of production is one of tile most vital to the success of the trade war, and the granting of reasonable financial facilities for executing orders abroad should enable markets to be captured that are under present circumstancos beyond reach. The bro-id principles of the scheme ;ire well calculated to achieve the object 111 view, and if the whole of the Empire is embraced in the scheme, it >ids l'air to make British trade one of ;iie marvels of the world. The development of the scheme will need proper safeguards, as well an intelligent intiative, avid, of course, it will take time, but there should be 110 doubt 1 bout the result if the project is backed iy the various Governments, and utilised tn the full. Systematizing industries and commerce will well repay the effort.