The Daily News. MONDAY, MAY 20, 1918. CRIPPLING GERMANY'S ECONOMIC LIFE.

Taranaki Daily News, 20 May 1918, Page 4

The Daily News. MONDAY, MAY 20, 1918. CRIPPLING GERMANY'S ECONOMIC LIFE.

The question of bringing economic •pressure to bear on Germany is one that has aroused considerable discussion in which divergent views hare tfeen expressed. The idea of an economic war following on the military struggle is repugnant to many persons, both on principle and because it partakes of a hind of vengeance that perpetuates international .bitterness. This view is mainly sentimental, and does not take into consideration that Germany has made herself an outlaw whose hands are dripping with Wood and whoso crimes aroused the horror and resentment of the civilised world. Apart from this aspect of the question, there has to be considered the imperative necessity for the nations, who have been so foully wronged by the Huns, to recover from the wastage of war and to rehabilitate their intensely strained 1 finances and neglected industries. The >var has compelled the Allied nations to take stock of their industries and provide for themselves the raw materials and manufactures previously supplied by the people of the Central Powers. Bavin" done this, they feel themselves independent of foreign exports, and new industries have been get going with the distinct object of continuing after the war that independence of Austro-German trade which hostilities rendered necessary. There is yet another viewpoint which deserves special consideration, namely, that the power of economic pressure which Britain and her Allies hold is a bargaining factor of enormous value when peace terms come to be arranged with Germany. Admitting that thej blockade of the enemy has been appreciably mitigated for the time being by, the collapse of the ■ wall, there are a considerable nun;' ' commodities which Germany car. ■ >nin in or through Eussia, and tin < ■, absolutely essential to the kind of industrial life which Germany had so thoroughly organised before the war. Take, for instance, the cotton manufacturing industry, which was taught totheQgnwuis

by British operatives and helped to build up a powerful competition against England. The loss of the German Colonies has cut o(T the overseas supply and the entry of America into the war lias still further strangled this industry i : i Germany, which depended on America, Kgypt and India for her jnain supplies—and that dependence remains. It may be urged that the resourceful Teutons will turn their attention to linen instead of cotton manufactures, hut it must be remembered that the 3ame area of land will not grow flax and food at one and the same time, so that Germany could not both clothe and feed the people ofT her own soil. The same argument applies to wool, even supposing Germany has tho run of Russia as at present—a most unlikely post-war position. In like mannner Germany's rubber industry is aflected by the loss of her colonies and made impossible, if the Allies so decree. Another large industry that can be extinguished is that connected with oil seeds, large quantities of which were obtained by the Germans from Nigeria, tho Cameroons and East Africa. The jute industry, for which' the raw material was obtained from India, also loomed large in German industrial operations, and supplies can be effectually cut off in the future. There are many commodities which the Germans produced but had to supplement by purchases from abroad, such as saltpetre, iron ore, tin, wool and silk, and on all these an embargo can be placed which would materially restrict German activities. The question of wheat and mineral oil depends entirely on whether Germany can hold her conquest of Russia and Koumania or not—i n fact whether Germany is defeated or emerges victorious, also upon whether Germany or Britain holds tho command of the seas. On this control of the seas depends also the existence or the strangulation of the German shipping industry, for if all the Allied Powers, including America, refuse to permit German vessels to enter their ports or to obtain coal from their coaling stations, Germany will practically be isolated, nor in view of her infamous tactics during the war, could she justly blame her present enemies for taking up such an attitude. It by no means follows, however, that though the Allies possess this powerful economic weapon that they will use 'in the way Germany would were positions reversed. At the same time they are fully justified in utilising the powerful lever of economic pressure to its full Capacity as a, means of securing such terms of peace as will ensure reparation, restitution and compensation for the ravages so ruthlessly committed for the purposes of aggrandisement—countries laid waste to gratify the lust of military despots. There is no disguising the fact that the commercial party in Germany recognises the danger of the sword that is hanging over their head. Now is the time for the Allies to make Germany clearly understand that the longer she makes war, the worse will be the pressure of the economic screw upon her. The matter is not one of sentiment, but one on which {lie security and freedom of the civilised world depends.