A ROMANCE OF WAR.

Taranaki Daily News, 4 December 1920, Page 16 (Supplement)

A ROMANCE OF WAR.

PROFITABLE GOVERNMENT TRADING. MINISTRY Of MUNITIONS MAKES ' .MILLIONS. London, July 8. Most of the While Papers and othi'i' literature touching upon the cost of Governmental intrusion into realms of business during the war do not make pleasant reading for the British taxpayer. Generally speaking-, the "busiliens transaetions'' ot' Departments have shown percentages of charges to turnover, which were calculated to give the business man something of the sensation produced by a spinal doueh of ice-cold Munitions. In its way v this White givings that the business man dipped into the White Paper issued this week wherein is set forth the record of the operations in raw materials for which Lord Inverforth was responsible, first as Surveyor-General of Supply at the War Office, and afterwards .at the Ministry of Munitions. In its way this White Paper contains a real ''romance of war." The sheer magnitude of the dealings described dwarfs the htigest transactions of ordinary commerce; but what is really remarkable k the degree of skill and economy with which they were uniformly carried out. It was not the Department's object Ito make large profits during the war. Its policy was to buy cheaply and sell cheaply, and lo keep administrative expenses down to a minimum. In the last respect its success is so great that, on a turnover of over SOO millions sterling, it kept the expenses below 3s per cent. —in any view" a very conspicuous business feat. It was constantly able to purchase at lower prices than those paid upon the open market, and nearly all its purchases inwed e/ood value. In selling it had to provide against submarine losses, enemy eaptnro.;, and otlunrisks in addition to the normal; and it calculated the necessary margins with great forsight. Its success in preventing the "rigging'' of prices against this country and its allies has been thrown into relief by what has happened since the removal of its various controls, In short, at no cost to the country, invaluable economic l services were rendered on a scale eclipsing all trade precedents. These gains did not come about automatically. They were the fruit of skill and experience, and were obtained by employing practical methods and practical men. Lord Inverforth has been bitterly criticised in some quarters, but this White Paper is his very ample vindications and something more. Down to March 111. WW, the cash benefits which he en rued from the Exchequer totalled 3*l4millions sterling. But that amount ( gigantic though it be, is a mere fraction of the value of the immense sums which he saved to the nation and to our allies by keeping down tlie prices of the raw materials of army supplies. The direct saving thus sccureed cannot be correctly estimated, but it could not have been less than SO million pounds, and some experts estimate it as high as 200 millions. '■SOME SHOPPING." It is impossible to give in detail the tables which show the enormous purchases made of the principal raw materials and values of the principal items of textiles and leather equipment manufactured there from for the fighting and other services of Great Britain and her Allies. But here, ignoring odd hundreds and thousands, are a few selected figures of material bought:—

Million lb. Home wool ... .■ 380 Colonial and foreign wool .. 2;244 Knglii.li sole leather .48 American sole leather 23 American upper leather ... 82 Raw cotton 4'/ 2 And here are some of. the orders placed between August 4, 191*, and March 31, 1919; Boots ■-. 02,000,000 pairs Gloves * 5,500,000 pairs Cotton goods, drill and calico .... 108,000,000 yards Flannelette 04,000,000 yards Jean 02,000,000 yards Tent duck 30,500,000 yards Sergo .« 80,500,000 yards 'Carta n 51,000,000 yards Great coat cloth . 30,000.000 Vards Flannel 270,500,000 yards Miscellaneous .... cloth 154,000,000 yards Blankets ........ (number) 49,500,000 Socks (pairs) .. 154.000,000 Sandbags 1,185,000,000 For 1919-20 the accounts are not yet complete, but provisional figures show mi expenditure of £100,405,000 and receipts, of £179,412,000, bringing up the totals to March 31. last to £377,000,000 for expenditure and £404,000,000 for receipts, a total ''turnover" of £781,000,000. The profits made to this latter (late are not given, hut up to the end end of March, 1919, they amounted to £38,720,525, mainly on wool and flax, which represents about 17 per cent, on the sale. While 17" per cent, is not. a "handsome" return, it is by no means a poor one, and the profit was only it small part of the economic benelits obtained. When private imports were curtailed or prohibited owing to the submarine campaign, the first call upon all supplies of raw materials was for military needs, and supplies for civilian trades were rationed as they could be spared. Submarine losses varied at certain periods from 2 per cent., in the case of one commodity, to 17 per cent, in another, and at times the element of exchange was "a Chinese puz/.le" for all engaged in commerce. Consequently, in the selling prices the risk of loss had to he guarded against, and it speaks volumes; for the ability with which the business was handled th;. no bad debts were incurred: that practically every purchase proved to be good value on the market, and that sea losses, though considerable, left a profit, on the underwriting account. The Department, be it remarked, was if. own insurer. The value of the stocks on hand at March last is not. given, but owing to the rise in prices since the removal, of control the realisation of the surplus should produce highlv satisfactory results. The raw materials directorate can justly, claim to have been remarkably successful in dealing with the purchase and disposal of enormous quantities of goods, and. even if it. has been accused some times of profiteering, the fact remains thai it well fulfilled the object for which it was created, viz.. (be ample supply of raw materials for the military purposes of ourselves and the Allies. Moreover, as a result of the purchases made and control exercised by the De|>arfmcnt issue prices to manufacturers were in almost ecrv case stabilised at levels far below f-ho.-e reached in other countries under competitive conditions. In some commodities Prifish manufacturers obtained their stipidies at. M 0 per cent, to 40 per cent, below those paid in other countries.