There may be some people who will wonder why attention is being turned to consideration of the problem of how the peace, which must follow this war, will be arranged, and how the necessary adjustments, calculated to prevent war in the future, will be made. Their wonderment is based upon the belief that until it is ascertained who is to emerge victorious from the present struggle, it is idle to formulate plans, for, if the Allies are the conquerors, one type of peace may be possible, while, if Germany wins, something entirely different is to be expected. Should the latter eventuality occur there is plenty of evidence available as to the sort of peace which would be imposed upon Europe. Its form would be decided by the Reich of Herr Hitler and his ideas on reaping the fruits of German victory are already too well-known to permit of the existence of any doubt as to what would happen. That, however, should not deter others from considering the best means of securing a permanent peace amongst the peoples of the world, based upon the more liberal ideas of the democracies, and it is apparent, from the memorandum which Mr. Sumner Welles has handed to the French Government, that this matter has already been engaging the attention of the Government of the United States. The memorandum contained a statement of the foreign economic policy of the United States, and with considerable speed M. Reynaud, French Finance Minister, after consultation with M. Daladier, the Premier, voiced France's complete agreement with the fundamentals outlined in the Note. The Finance Minister also went on to state that the principles of free and fair trade relations as enumerated in the American memorandum were precisely the principles for which the Allies had on several occasions stated they were fighting, and which inspired the Anglo-French economic agreement.of December 4 last, which was considered the first step towards economic and monetary organization based upon freedom.
From the general contentions of the memorandum there cannot be any difference on the part of the Allies, and though expressed in such general terms as to permit of a belief to the contrary, they do not envisage the establishment of a universal free trade system. That is the desirable ultimate, but before that can ever come about there will need to be such a levelling of the standards of living amongst all the peoples of the world, tending to stabilize the cost of labour wherever it can be found, that its attainment would seem almost impossible of realization. Be that as it may, there still remains much that can be done, and great advances possible towards the goal which President Roosevelt undoubtedly has in mind. The end of the last war saw the nations of the world eager to get back into normal trading relations. Economic and financial conditions did not make that quite so easy as it could have been wished, and from a desire to protect the domestic markets of individual nations arose an exaggerated spirit of nationalism, followed by increased tariff barriers, quantitative regulations and exchange restrictions which operated against the best interests of world trade as a whole.
In addition to this there was the policy of autarchy, adopted by those who were to become the aggressor nations of the world, an attempt to create a degree of self-sufficiency which would make them entirely independent of the world they were planning to offend by the material expression of their international policies. Thus added to the artificial obstacles to a freer international trade which had been hastily thrown up by the various nations of the world, was added the partial removal of a number of customers the loss of whose trade in certain commodities proved a by no means light blow to what was already a badly damaged structure. The situation was such that, even if it had not been for the grabbing policies of Herr Hitler, the world trade positión was deteriorating to such an extent that that of itself might have brought about a conflagration, and it is with the intention that it shall not occur in the future, when this struggle has been disposed of, that certain quarters are devoting their attention to the solution of those economic problems which for the moment have been thrust into the background by other weightier preoccupations, The point has been made that total elimination of tariff barriers will not be possible until many factors which permit of unfair or unmeetable competition have also been removed. That involves the levelling up, and not down, of living conditions in the various competitive producing countries. Obviously a nation has to protect its domestic industries by tariffs if it finds another nation, living by entirely different standards, is able to produce similar goods at a price which must drive its own products out of its own markets unless they are given a measure of protection calculated to offset the lower production costs. It is suggested that the memorandum contains a veiled statement of apprehension that the Anglo-French economic agreements might prove discriminatory against free world markets. Viewed from one point of view, and that a purely temporary one, there might be something to be said for that suggestion, but, seen from another angle, there does hot appear to be much substance to it. The Anglo-French agreements, it has been stated, are such that there is nothing in them to prevent other nations becoming parties to them in better and happier times. They lay the foundation for an economic system after the war, if the rest of Europe so wishes, in which trade barriers would be largely done away with, and a freer exchange of goods, and currencies made possible. From such a commencement it is not difficult to see that extensions should be possible as the result of which the whole world would eventually become involved in a general process of removing high tariffs and other obstacles to trade and providing for the free interchange of goods in a manner most likely to eliminate those economic hostilities which are just as productive of wars as any other cause which can be brought to mind. The adoption of a policy all around of live and let live would be the best guarantee of peace in the future, when once certain nations have been fully impressed with the fact that wars settle nothing, but serve to perpetuate old grievances A Good Settlement The settlement of the Anglo-Italian dispute, concerning the shipment of coal from Germany to Italy in contravention of the British blockade, has proved as satisfactory as it was thought it would be. Great Britain will permit the Italian colliers held in the Downs to sail. Vessels at present in Rotterdam and other ports which have not started out with cargoes of coal will return to Italy in ballast, and no more coal will be loaded in Italian ships. This Solomonic decision admirably suits the case. Italy gets the coal she has loaded, despite the expiry of the three months' notice, but Great Britain establishes her point concerning the applicability of blockade measures against an important form of German export cargo. There is, of course, nothing to prevent Germany increasing her supplies of coal to Italy by rail, if that is possible, and, should that be done, Great Britain cannot in any way complain, being in no position to stop it, Thus German hopes, that this particular issue would lead to a worsening of the situation between the two countries involved, have bee: brought to naught and the way opened for a resumption of the Anglo-Italian trade negotiations. The statement made by British statesmen that Britain would supply Italy with whatever coal she may require irrespective of the terms of the general war trade agreement which it is hoped will be reached, should tend to accelerate a successful conclusion of those negotiations, for the old discussion as to when ther the fuel should be forthcoming in exchange for the products of Italy's heavy industries seems now to have gone by the board and the rock upon which it was thought the negotiations might break done away with. It is not to be expected that they will not still be fraught with difficulties, but the removal of one of the major hindrances to complete agreement permits of the hope that the process will continue until a complete and satisfactory understanding is arrived at by both parties. It is to be expected that Herr von Ribbentrop will endeavour to hinder matters during his stay in Rome, and it is a comforting reflection that, if his visit to the Eternal City was designed for the purpose of throwing a monkey wrench into the machinery, the rapidity with which the blockade issue has been adjusted has thwarted him of any such opportunity, ensuring that so far as this aspect of his visit may be concerned, he has achieved another of his outstanding failures.
Text read from the printed page and cleaned; old type leaves the occasional error.