GERMANY'S COMMERCIAL POLICY.

Waikato Argus, Volume IV, Issue 231, 6 January 1898, Page 4

GERMANY'S COMMERCIAL POLICY.

"An Englishman in Germany," writing to The Times, asks if it is reasonable to Buppose that we can rely ;ole'y upon common sense and cood will for the maintenance of our industrial and commercial position,.' .and . perrjipneutly forego the use of those weapons with which it is being assailed in every direction. It may be useful (he continues), in view of impending negotiations with Germany, to note the principles which govern the pobcy of the greatest of cur commercial rivals. Germany feels more and more the need of foreign markets. She has ceased to be a pre-eminently agricultural country and is becoming every year more aud more an industrial and commercial country. In ISS2 of every 1000 persons 425 were supported by agriculture, and only 355 by industry and 100 by commerce. In 1895 the proportions were already nearly reversed, 391 per 1000 derived their livelihood from industry,! 15 from commerce,and only 357 from Agriculture. Foreign markets must, therefore, be secured abroad for the surplus production of her industry, and on the other hand food and raw materials must be obtained in increasing quantities from abroad. The economic policy of her Government is to make these two requirements subserve each other by the operation of an autonomous maximum tarriff held in terrorem over other nations. Were that tariff universally enforced Germany would undoubtedly suffer those evil consequences which urc inseparable from protection pure nnd simple, but it is not intended to be so enforced, and it is not actually enforced except in two cases. The first is that of a country which holds out no corresponding advantages to German •export trade and which produces something that can be already abundantly supplied by other countries who have a guidpro quo to offer her. The second is that cf a country which absolutely refuses to grant to German manufacturers the desired market, and then only in so far as its products are not iudispensable to the German manufacturer or consumer. (American raw cotton and foodstuffs, for instance, cannot en that account be subjected to the maximum tariff ) We shall donbtfess before leng ourselves have some peisonal experience of the May in which the German system works. We have denounced the treaty of 1£65, and negotiations will soon have to be commenced for a new treaty to take its place Germany will enter upon the new negotiations equally armed for offence and defence, though in our case she need pay but little attention to the necessities oi defence. We arc not in a position to offer Germany anything which we withhold frcm other countries, or to withhold anything from her which we grant to others. Ibbe will, therefore, have only her own convenience to consult. She will continue to take from us whatever she may stand in need of, so long as th~re is no other country producing similar articles that can eay to her: " Buy from us instead of buy:ng from the English, and in return we will buy from you such and such articles which wo have hitherto bought iu England." But however much or little it may serve her purpose to 1,0 on dealing in our markets, as th-y are open to alii-comers, she will have no inducement to refrain from dosing her own markets against us whenever it may seem to her advantage to do io. Which ever cheek she smit'S us en. wc cau Lnt turn the other cheek to the smi er. Is this a condition of things really calculated to promote, I will not say the in'ertsts of our industry, but the cause of economic peace in the shape of inten ational free trade ? Does it not, on the contrary, invite hostile combinations cgainst U 3 by assuring in advance their absolute impunity ? A political league of the Continental Towers egainst Great Britain maybe out of the question, for we are fortunately still in a position to command respect for our political interests r.nd to make terms with one or other of the rival groups into which the Continent is divided. But can wc afford to disregard the danger of ecor.orr.ic combinations, to be formed at our expense and aga : nst which we have voluntarily surrendered every weapon of def nee ?