The Daily News. WEDNESDAY, DECEMBER 27, 1922. EMPIRE TRADE.

Taranaki Daily News, 27 December 1922, Page 4

The Daily News. WEDNESDAY, DECEMBER 27, 1922. EMPIRE TRADE.

Within the last few years much discussion has taken place on the subject of trade within the Empire. Approached in the first place from a sentimental point of view, that gave the matter an academical rather than a practical basis, and gradually circumstances forced attention to be directed to the necessity of making Empire trade a reality. The main reason for this change of aspect is to be found in the impoverished condition of Europe and the great drop in the exchange rates for the British pound sterling. For some time it was considered that the conditions adverse to trade with foreign nations would pass away and normality be reached once more, but as time went on economic conditions became worse on the Continent, and British Indus trialists were forced to turn attention to the development of trade with the Dominions. In his recent address to the British Empire Union, Mr. L. C. Amery (formerly Secretary of State for the Colonies) aptly recalled the fact that it was the wisdom of our forefathers in building up trade with the American colonies that helped Britain to withstand Napoleon for twenty years. Bearing in mind the maxim that “history repeats itself,” it is not surprising to find that the complete disorganisation of the foreign markets after the recent Great War has caused the statesmen of the Empire to realise that trade within the Empire appears to be the best —possibly the only—means _ '4 sustaining industry, reviving trade, and re-establishing economic and financial stability. The statistics quoted by Mr. Avery speak for themselves. Britain s nett exports to Europe in 1913 totalled thirty-two millions sterling; to the rest of the world ninety-eight millions, and to the British Empire 164 millions. The main difficulty with respect to Empire trade is that the policy of Britain is based generally on free trade, while that of the Dominions is preference. How far these two policies can be adjusted so as to facilitate a large expansion of trade between Britain and the Dominions cannot be estimated, but there should be no difficulty in at least adopting a policy of give aud take. The Dominions are in a position to supply the Motherland with foodstuffs and raw material in quantities that should be increased year by year. In return Britain supplies manufactured articles. Obviously it, would be to the best interests of both parties to build up the strength of the Empire, but; according to one of the speakers at the Colonial Institute recently, the cultivation of overseas trade has always been neglected by Britain. The loss of foreign markets and the presence of considerable unemploymen t h ave acted as a lever in raising British hopes of emerging from the misfortune of bad trade. Necessarily the key to Britain’s trade expansion rests in the hands of the Dominions. It is on their loyalty to the Motherland that trade revival depends, but if prefer dealing with America for goods that Britain can supply, that policy must inevitably assist in continuing unemployment, a state of affairs that reacts on the Dominions by lowering the price of foodstuffs because the people have not the money to spend on the commodities the Dominions send to Britain. With the exception of Canada, whose proximity to the United States is probably a deciding factor in trading with Amei’ioa. it. is decidedly in the

best interests of the Dominions to do all in their power, to foster British trade. Possibly the coming Economic Conference may prove advantageous.in throwing the proper light on this great problem, but in the general way such conferences are not productive of practical results Probably suitable and reliable propaganda would be of greater service. That some practical steps should be taken must be apparent to all who view this subject in the right light.