Evening star., 1932-07-05
CONTROL OF TRADE
BRITISH OBJECTIVE.
Ottawa Parley Aims to Tie
Dominions Into Eco
nomiC Unit.
epecial Dispatch to The Star.
OTTAWA, Canada, July (N.AN.A).

special Dispatch to The Star.
OTTAWA, Canada, July 5 (NANA).
.s-Tdealism versus materialisml
Perhaps the greatest struggle between
these two forces in the history of the
British Empire will occur in this city
when the leading statesmen of Empire
countries gather July 81 at an imperial
economic conference at the call OF
Prime Minister Bennett of Canada, in
an attempt to bind approximately one
fourth of the worlds population into a
single economic unit
The aim of the conference, which will
be epochal whether it achieves its end
or not, is to enlarge nter-Empire trade
through a series of preferential tariff
agreements, and to otherwise Solidify
Empire prosperity through the laying
down of economic principles by which
governments in the British common
wealth of nations may be guided
Sterilization of inter-Empire currency,
the wheat problem, development Of ma
tural resources. the shipping of British
products in British boats, and perhaps
the question of Empire migration, un-
doubtedly will be among other topics
included in its agenda
But as surely as idealism has been re-
sponsible for the calling of the confer
ence, just as surely will practical ma
teriaIsm, to large degree, govern its
deliberations.
Plan Imperial Spirit
1dealiSm, as expressed in thought and
action by the conferees lies in the Gre
alton OF gigantic imperial spirit, which
I It Is hoped will activate the conference.
I They warn that the delegates must not
enter the meeting purely in the spirit
OF horse traders seeking individual ad-
/ vantage. There must be a oneness of
| purpose for the greatest common good
I of the British Empire. Trade sacrifices
! must be made in the name of this ideal
ism, or the conference will lack the
motive power to reach its goal.
Materialism, on the other hand, will
be the dollars and cents psychology
upon which decisions of the conference
must be based. Capital investments,
established industries and natural trade
channels, in the final analysis, may be
more controlling factors in movement
OF this sort than the sounding of ideal
1stic aims and the creation of Utopian
atmosphere
The British dominions win have to
hurdle the psychological effect of the
failure of the 1880 imperial conference.
neid IN London, which ran aground
following a proposal of Prime Minister
Bennett offering Britain preference in
the Canadian market, in exchange for
2 IKE preference in the British market,
based upon a full increase of 10 per
cent in the tariff rates of Empire coun-
tries as against all non- Empire coun-
tries. That is. If Canada had a 10 per
cent rate against given commodity.
unoer the Bennett plan it would have
been increased to 20 per cent.
Britain Sets Stage.
:. Britain had no tariff walls at that
tllne, ana the Bennett proposal was
termed "humbug" by Dominions Secre
ttary Thomas. Today, however. the mic
ture is altered. Britain not onlv d.
yorced her historic free trade policy
ana followed out the Bennett plan of a
~ per cent tariff against all non-Em-
plre countries, but she has embraced a
pohcy which specifies a tariff rate of 90
per cent against all countries outside
the British commonwealth. Conse-
quently, Britain has set the stage for
negotiations along the line of those sup-
gested by Mr.. Bennett in 1880.
Just how Britain itself proposes to
trade more within the Empire in view
OF the large investments she has in for
Slgn countries, and to which trade is as
IIes blood, cannot be foretold TarifT
arrangements with the doninions would
certainly endanger these Investments
ana 1t is hard to see how British in.
oustry both at home and abroad could
Wltnstand such a blow at this time.
CONSPICUOUS instance in this regard is
Argentlna, with which Britain carries
on large trade, and where British in
FesCmentS are actually larger than in
Cansoa, her greatest dominion.
:. Of course, 1t may be that Britain g,
tlie conference. will seek to protect her
investments In other countries and Al
AeCG ltS economic attack solely or
america, which may only stand on the
Sioellnes and observe the proceedings
consequently the United States is Vi
taIiy interested in any part of the CON
ference, since she has a normal annual
tL Lue Win tne British Empire of more
laws Of supply and demand are i,,evor Cr-e
sole, 1t is not difficult to foresea tba+
@ ene more British countries buv from
Sl Ce announcer, the less they can blIv fron,
tne United States, which has denended
Upon Them in the past for nearly haIf
1ts foreign trade. nan
II this action is to be s,,ccessf,,,,,,
Isken, however, it is evident that ths
~ ence mas cut out for itself a task
"a no mean proportions. Certain econo-
Wiz, nave agreed that, like water
trada trad =, Ililos us own level, trends of
siaue III prior years have assumed =
constancy and have followed certair q
.1atuTaI channels which render thero
"en nigh immutable. 'Ai
Trade Trend.
- 1hey argue, as an instance. that to a
taLge extent the North American Con-
,,,-t. mas become a single economic
sa,,tt, WIN trade flowing north and
i1ot1,i, hot,,,, ana tnat, despite tariff barriers
petWeen canada and the United SteteS
at one time or another. the two nations s
nave become one anoCher's best rIrre
TONER'S. For this trade to be divertad
" otler sources, they assert, means that
natural trend must be reversed
4Hey cite percentages of trade be-
tween Canada and the United States
over a period Of 20 years to sustain
their contention.
For instance, in 1911 the United
states supplied 60.8 per cent of Cam
aoas imports. Despite fluctuations
over the intervening years, in the fiscal
year 195l-32 the United States still was
supplying 607 per cent Of Canadian i'm
ports In 1911 Canada sold "A ner
cent Of her exports to the United States
Today Canadas export total To the
United States is 40.8 per cent of her
total sales.
While this has been going on Can
aoas trade with the British Empire has
been steadily decreasing. In 1911 Can
ada sold the Empire 54.3 per cent Of the
Empire imports. In 1882, however.
tnis figure dropped to SO per cent.
Canadas purchases from the Empire in
1911 were 28.7 pc cent of her total
purchases. During 1882 this figure
had dropped even lower, to 25.5 per
cent.
It is in an ATTEMPT 70 correct this