The Daily News. SATURDAY, JANUARY 4, 1919. CONTROL OF RAW MATERIAL

Taranaki Daily News, 4 January 1919, Page 4

The Daily News. SATURDAY, JANUARY 4, 1919. CONTROL OF RAW MATERIAL

A recent cable message from Melbourne stated that the wool clip up to July 1920 had been sold to the British Government. Some surprise was felt by those who considered that now the war was over there should be no necessity for the Imperial authorities to buy the Australian wool clip, but] to those who realise the importance of the control of raw material the transaction appeared quite intelligible. The question of preventing supplies of raw material being utilised to assist Germany in fostering her industries and competing with the Allies in the world's trade has received much attention, for it was common knowledge that Germany had become great and accumulated a large amount of wealth by her industries, being thereby enabled to

enter on the war which lias just been brought to a close. As Germany is compelled to obtain most of her raw material from overseas, it is obvious that it would be a weak and unsafe policy to play into her hands, for though her vengeance for defeat may be -precluded from taking a military form in the future, she might apply it in the realm of industry, and it is for the Allies to study their best interests by ensuring that raw material shall not fall

into her hands. The editor of the Paris Le Matin, Mr Lauzanne, who was a member of the French Commission that visited the United States, has recently drawn attention to this subject very forcibly, on .the ground that by keeping Germany on short commons in regard to raw material, the Allies

will always hold the whip Hand. Dealing with the question of Germany's wool imports, nearly all of which have in the past been derived from Australia, New Zealand and South America, Mr Lauzanne points out that in Germany there are 16,000 firms and 575,000 looms which constitute the woollen industry, and these need at leant twenty millions worth of foreign wool every year to keep' them going. It seems

incredible that anyone outside Germany could advocate that wool grown, in the British Empire should, after what we have suffered through Teutons, he allowed to find its way into German hands, instead of into the mills of our French and other allies, after Britain's needs are supplied. It

may mean that a million or two of German textile workers will have to find other employment, but that must be taken as part of the punishment of the nation for the crimes committed by its people. Copper is another material largely imported by Germany, for she produces only thirty-four thousand tons out of two hundred and sixty thousand used by her annually, about 88 per cent, of the balance being obtained from America, and 6 per cent from Australia. The value of German exports of electrical apparatus alone in 1912 was four and a half millions sterling, while the value of all exported machinery and mechanical appliances requiring copper amounted to thirty six millions sterling. Another essential

for German industries is fat, which is used in explosives, for fertilisers, cattle feed, varnish and soap. The import of fat in 1913 amounted to 96,000 tons—--46 per cent of Germany's requirements. The elimination of these foreign supplies would certainly make Germany feci very acutely the Allies' power, but whether an indefinite paralysing of German industries would be a sound economic policy is another matter, yet for a limited period there are good reasons why the step should be taken. Germany grew rich and became a world menace at the expense of her intended victims, and

it seems only fair that the Allies should turn the tables' sad profit by their victory. The mt;m point, however, is that Britain is how going to develop her industries on a scale neve? yet attempted. During the war feamense quantities of machinery were required for war work, bi>.'<s ft rs intended to utilise as much of this equipment in peace time for promoting the expansion of industries. The problem of redirecting .the industrial energy of the country into the ways of peace has for more than a year and a half been receiving the attention of the British Demobilisation and Reconstruction .ci'lSki British Min-

Istry, and it is intended to wind up and liberate, as quickly as possible, the controlled firms so as to enable them to start on the new work with a minimum of delay, and it is manifest from a recent address given by Mr Churchill to a meeting of the Boards of Management Representation Committee, that a good start has been made towards formulating a clear and definite policy. The object of the Demobilisation Board is to put firms in a position to get started on new work with the j least possible impediment and delay; every assistance is to be given to manufacturers to obtain the materials they require on a priority basis; and Mr Churchill himself, as Minister, hopes to collect a certain number of important orders from Government departments which can be put out on the general trade during the initial stage. Referring to the transition from war factory work to the arts of peace, Mr Churchill said:

"After all, I regard tliis operation exactly as the consolidating of a victory in tile field. The troops have stormed the entrenchments j they are there. A new danger comes, a counter-attack, a new difficulty You have to make tSa ground absolutely good. Our victory "will l>e worth, nothing n we make a muddle of this subsequent process, What shall it profit a man if he gain the whole world and then comes a cropper over demobilisation! We invite proposals from the boards of management on the future use of the national shell factories. We invito proposals for the futoa use of other factories in their areas- We invite proposals and their very earnest

attention as to the extent to which labor, especially female labor, in their districts can be absorbed if released from munitions work The release) of maciiine-tools for pust-war work has been agreed to. I have arranged for that, and all the departments fcf this Mifetry will, from the moment s.ii effective armistice has been signed, be using all their influence to. facilitate thfe active resumption of industry and enterprise by the release both of materials and of machine tools, and by che affording of tne necessary priorities so far iij they aye necessary, I end as i began with this appeal, and, indeed, if T may «av so, command to stand every man to his post and make good the glorious conclusion to which our war struggle lias ac last, by the soundness of our viationul institutions, the justice of our cause, and the valor of our soldiers, batu finally carried"

It is oDvious that the employment lot' the vast store of manufacturing machinery and the utilisation of the large buildinga which have been devoted to munitions mtii. 1 .- faeture and other war purposes, will necessitate the importation of expensive supplies of wa.v material, und it is only lei? to clfsici that Britain should have the preference over Germany £a this respect. There is not only 'che question of increasing the. industrial output to consider, bnt tne employment 01: the mar vvorfcers and the repatriated soldiers. Hence tn, j control of raw material by t'ne Allies is noi only sound policy, bat a matter of necessity. Loyalty on the part of the Dominions in furthering this industrial effort is equally as important as helping the Motherland to win the war.