THE ECONOMIC OUTLOOK.

Taranaki Daily News, 20 June 1918, Page 7

THE ECONOMIC OUTLOOK.

PREPARATION FOR THE FUTURH'] Mr H. Cocker read an interesting paper at the annual meeting of the Taranaki Chamber of Commerce on the economic outlook. Mr Cocker commenced by affirming that at the present time three great world conflicts were raging—character, commerce and war. In considering the commercial conflict it was impossible not to take note of the other. The author of a book entitled "Eclipse of Empire" said that 40 years ago Britain was the workshop of the world. To-day she is not. That was largely because of apathy of the British in seizing and making use of new ideas and inventions, which had been more quickly appreciated, appropriated, and applied in foreign lands. The root cause of all that makes for decay, warping, fossilising and shrivelling of industrial fruitfulness, in employer and sanployed, is to be found in the lack of a proper system of national education for all classes. The success ol continental nations in thgir methods of production was due mainly t« the possession of better system of technical education. Germany has neither the deposits of coal which have made England rich, nor the wonderful soil of America, yet In 17 years (1897-1914) she was aMe to increase her industrial production'' sevenfold. In Munich, which is tie model city for the study of the continuation school problem of a trad« character, every boy of fourteen rs compelled to attend one of these trade schools unless he is preparing for the university or the official or learned professions. There are schools for every trade for which there are 20 or more pupils between the ages of 14 and 18. All the schools are free—half the cost being defrayed by the state and half the city. Huxley has said—and it was still true—"This was an age of modern artillery, and we turn out boys to do battle with it, equipped with the sword and shield of an ancient gladiator." "THE ECONOMIC WEAPON.'' In the preamble to a pamphlet recently published by the Overseas Club, London, General von Freytag-Longfloven is quoted as saying: "The power of radical decision of a world war has slipped away from the armies. The strategical situation is conditioned by the world economic situation. Victories, which once would have been absolutely decisive, have not brought us nearer to peace." Similarly General Smuts, ft man who measures his words, said: "The economic situation is the most important matter of aIL" On the hypothesis of a war with Britain, representatives of trade agriculture and industry were called to a conference at the Ministry oir the Interior in Berlin in May, 1914, to discuss the economic question. Mr Cocker suggested that such a conference in New Zealand even now would be o{ immense .economic and commercial value. Employer and employee were inseparably united,' and they had tetter pull together and get things right down to business; discord is failure and disaster. The key of all industries is the production of raw materials. New Zealand, and Taranaki in particular, is in this respect unique, and most highly favoured by nature. The commercial possibilities of the province are boundless. The streams and the moist climate around Mt Egmont are ideal for cotton manufacturing. This industry, coupled with wool and iron, would mean increased population and shipping. It may be that New Plymouth will some day be the Liverpool of New Zealand. Germany's economic life was built up, more than that of any other continental power, on a foundation of raw materials, with comparatively limited natural resources, and she owes her prosperity to the industry and technical ability of her people. We in New Zealand have, and produce, raw materials and compare more than favourbly with Germany in this respect. If, trained and equipped our boys are more than equal to the Germans in the field of battle, then, if sufficiently trained and equipped in manual, technical and commercial education, they will also be more than a match for the Germans. It is the business of Chamlbera of Commerce to move in such matters- This was not on incident, a happening which has a defined beginning, a visible end and a more or less visible area of operations; it it forcing us to the conclusion that we must get out of the ruts and riß© to higher things, or go the way of Rome, Greece, and other once-great nations. KEY TO EFFICIENCY. In referring to what he termed the. key to business efficiency and commercial' prosperity, Mr Cocker said it was admitted that the hope of the Allies for the future rests with America. The King's welcome to the American La<bor delegation indicated the great and important work to be done after the war—a work which only the invincible alliance of Great Britain and America will be able to accomplish. That view was endorsed by (President Wilson's pronouncements. Dr Cannon, a prominent American, who was recently in England, asked pertinently: "Why should we in America have meatless aiid wheatless days in order to send food to England, when you English persist in converting it into alcohol, which Mr Lloyd George said is to ibe feared more than Germany or Austria.?" Every bushel of grain converted into food is a factor in the world's salvation. Would it not toe a better business proposition to adopt the Efficiency Board's recommendation and 1 out the liquor traffic for about £4,r 000, and thereby secure a benefit to . Dominion of approximately £18,000,000? When the world is facing famine it is bad business to destroy grain. COMMERCIAL ASSET OF THE CHILD Referring to the education of the children, Mr Cocker stated that every child was a commnrnini asset. This war has to be paid for, and our children will have to foot the bill, re-create the national wealth, and re-establish commercial security. If military science is necessary to win the war, muph more is commercial science necessary to win peace, security and prosperity. The Government should possess a system of commercial scientific instruction. The Government commandeers T " n ". money and foods, for the purpose of killing and destroying the enemy. Whv commandeer men to re-organir.e and re-model our system of national and commercial education? If the nation is stronger for having trained its soldiers, should it not be stronger for training its scholars t Mr Cocker also stressed the need for a more vigorous policy of agricultural education. TRUSTS AND COMBINER. Referring to crusts and eomluflf ilk Cocker quoted President Wila°«2s pinion, which was to the effect th-iu . #rg&aisftiions arc band upo nothing

except power—they are nottased on efficiency. They cnush individualism 60 that nobody can dispute the price they fix. It is a case of 'buy from them at their price, or oat you pure and siajple. America has lost her liberty through trusts and combines and she is no longer a place where a man may chose his own calling and pursue it as far as his abilities enable him to do bo. The writer of an article published in "System" shows the influence of industrial combinations in Germany and what their effect would be in Britain, and he goes on to appeal for syndication in various trades in order to strengthen their position in the world's markets. Mr Cocker proceeded to show how that during the war many individual concerns had been compelled to place themselves under Government control and stated that in this respect Germany would tome out of the war even better equipped for international competition than when she entered the war. The chief cause of the breakdown of most combinations in the Empire or the Dominion had been the maintaining of prices without eooßOmreing the methods of production. Business combination is far more than a matter of business profits; it is one of the chief directions in which to look for improvement in the social well-being of the people. Economists have ceased to believe in competition as they did in the past. The time has come to judge of an industrial system by its effect on the producers—the whole' working population. Professor Ashley has said that the most demoralising influence in industrial life has been irregularity of employment. The root trouble is the fluctuation of trade justly due to the inability of uncomjbined manufacturers to stabilise production. The vital necessity after the war will be business statesmanship. I<oaj» viewß will have to be taken both as to output and price. The public have rights, and their claim to be economically and efficiently served is a just' one. Mr Cocker concluded by referring to the establishment in 1917 of the Imperial German Commissary for Transition Economy which had two separate branches—external and internal, which dealt with the import of raw materials and foods j provisions of means of exchange; and of settlement of all questions connected with tonnage. Various sub-committees were set up to deal with sectional matters under the various departments.