Finance

Securities and Security

NOT by any means for the first lime me holders of securities, even those of the most Gilt-]Edged character, must be feeling that the soundest securities are not immune from the destructive influences which can be exerted by any threat of disturbance to international peace. During the past month we have seen a material decline in British Funds and other high-class securities although roost of the influences, such as cheap .money and the low rates of banking deposits responsible for the long-continued rise, remain as much in force as a month ago. In short, the set-back in securities has been entirely due to growing anxiety lest the Abyssinian crisis should result in a war between Italy and Abyssinia, with the possibility either of European complications or of some great blow to the prestige of the League of Nations.

EVIL EFFECTS OF FEAR.

It is not only the nation's investments in securities, however, that can be adversely affected by fears of a disturbance to international peace. This same feeling 'of apprehension and insecurity can prevent that measure of international confidence without which activity in international trade is well nigh impossible. And, indeed, if one cause more than another is to be held responsible for the failure of the nations of the world to recover from the devastating effects of four years of war, it lies, in spite of the formation of the 'League of Nations, in t% feeling of insecurity among the nations, a feeling which in some directions has bred apprehensions which in their turn have ministered to the spirit of extreme nationalism which has set up economic barriers between countries, all tending' to prevent the growth of mutual cooperation and good will. • THE ROOT OF THE MATTER.

' At the present moment all the energieSn of the League of Nations are—necessarily, no doubt—concentrated upon the one object of taking such measures as may prevent the actual outbreak of war between Italy and Abyssinia. I cannot help thinking, however, that the Archbishop of York, in his stirring wireless address last Sunday evening, "came much nearer to the root of the Matter when, after expressing his views upon the immediate pressing crisis in Europe in' the shape of the Abyssinian trouble, he referred to some of the causes of friction between nations, which, he maintained, if not effectively dealt with, would tend to culminate in war. Prominent among these causes is the necessity for nations to have the necessary outlet for surplus popula- tion, or for supplying economic necessities. The Arch- bishop said : " If we now say to those who have need of expansion, ' In the name of Love and Brotherhood—hands off,' we shall be convicted of groSs hypocrisy.

" If we really believe in the community of nations, we must be ready, and obviously ready, to start the work of arranging for the nations which lack outlet the means of satisfying their need.

" It will be far the greatest and most difficult problem ever attempted by human statesmanship."

BREAKING DOWN BARRIERS.

In other words, we seem to need' a strong lead in the direction of breaking down the barriers of extreme nationalism and. setting up in their place forces making for international cooperation. Even before completing the sentence, however, one is conscious of having stated the requirements in their reverse order. . For it will only be by bringing about a recognition of the need for each nation to seek the good of other nations as well as their own that the barriers of extreme economic nationalism can be broken down and give place to something approaching more nearly to a spirit of inter- nationalism. Very little of ultimate permanent value has ever been achieved or will ever be achieved by a policy of negation, and while there is, of course, much to be said in praise of the attempts made by the League of Nations to bring about disarmament, I cannot help thinking that greater success could be achieved along the lines of discovering the mutual advantages to be gained by international cooperation, which in time might bring about disarmament, because a new and a better spirit had been created.

LESSONS FROM RECENT YEARS.

Nations, like individuals, however, have to learn by experience. It may be that when the nations have learned that economic nationalism can only bring .about a certain measure of prosperity, a measure apparently insufficient to give full employment to its population, there will be a clearer perception of what I believe to be the actual truth, namely, that the maximum amount of world prosperity can only be achieved by international good will and cooperation. We may then see statesmen of the leading countries endeavouring to bring into being some organisation having for its object the economic cooperation of their respective peoples in endeavouring to promote those conditions most calculated to bring prosperity not to one but to many countries. The truth of the proverb :

" There is that scatteroth, and yet increaseth ; and there is that withholdeth more than is meet, but it tendeth to poverty."

is as applicable to, the economic situation today as to matters connected more directly with ethics or religion.

A POPULAR DELUSION.

As in individual experience, so with nations, it is • so easy to see the shortcomings in our neighbours and not to observe the beam in our own eyes. The high tariffs imposed by the United States and their refusal to receive payment in goods and services may perhaps be a striking instance of a creditor nation failing to realise and fulfil its obligations, but we must be sure that our own con- science is quite • clear in this matter. For the spirit of economic nationalism is growing and its evil influences are contagious. The idea that a . country can become prosperous by exporting to the maximum and importing to the minimum extent is a delusion by no means peculiar to one nation. But it is a delusion detrimental to the interests of every nation who holds it, and it is also, I believe, an impediment to the bringing about of those 'conditions making for international peace and good will. The Abyssinian crisis, let us hope, may pass without the provoking of a conflict, and we must trust that the realisation of a danger escaped may strengthen the hands of the League of Nations and promote good under- standing between its members. Nevertheless if there is to be that feeling of confidence upon which the actual, security of our investments depends, we shall do well to' look beneath the surface and discover those causes which lead to international friction, seeing to it that, as far as possible they are, if not actually removed, at all events Qontrolled and governed by a consideration for the welfare of the nations as a whole.

ARTHUR W. KIDDY.