THE WORLD ECONOMIC CONFERENCE [To the Editor of the SrEcrwrox.1
Siu,—Mr. Goodenough, in his annual speech as chairman of Barclays Bank, refers to the League of Nations' proposals for promoting European Free Trade by the reduction or removal of existing tariff barriers, and states : " It would certainly be more to our interest to devote our energies towards the development of the British Empire." I think a great many Englishmen will agree with this view.
For whit were the data on which the World Economic Conference founded their proposed tariff reductions ? Very briefly they were that in Europe since the War many increased trade barriers had grown up, and that the observed effects had been a diminution of international trade accompanied by an increased production.
From these facts the Conference deduced their recom- mendation that trade barriers should be reduced, and the President of the Conference in lits final speech explained the reason by saying : " The Conference, as an. International Conference, has felt bound to assume that International Trade is of itself to be desired."
Quite so. If that be your object, then, indeed, trade barriers should go. But why stop at that ? Put on bounties as well, and so swell international trade to still greater dimensions. And then the International Economic Committee will also swell to much greater authority. But the world does not apparently think this is of importance. Presumably the world does not agree that international trade is " of itself " to be desired. On the contrary, most of us believe that production and not trade is the sole test of prosperity, both of nations and of the world. Production has increased, as the League Economic Committee admit. Is this really a good argument against Protection ? To me it seems to point to the advisability of following Mr. Goodenough's advice and concentrating first on our own Empire and making that an economic whole, before considering Utopian schemes of Free Trade within a distracted and many-tongued area such as Europe.—I am, Sir, &c., ALPHA.
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