"NEVER AGAIN."
It would be nothing less than a crime against civilisation if, after the
War has come to a close, Germany is left with the power again to make
herself a menace to the peace of our modern civilised world.
We need have no sentimental considerations on this point. We want none.
Germany has shown conclusively that she is not to be bound by any
considerations of honour, and that she has deliberately aimed at what
the world will never tolerate--world-dominion in the hands of a single
Power. We and our Allies have determined that she shall not be allowed
to realise her ambitions in this direction; it is our duty to see that
for the future, in the interests of humanity as a whole, she is robbed
of the power of making herself a nuisance and a danger to her
neighbours, who wish only to live in peace.
If peace for the moment were the only object of the Allies, their wishes
could be gratified on very easy terms.
There is no doubt whatever that Germany would be glad to bring the War
to a close before she is more seriously weakened, if not utterly ruined;
it is our business and the business of our Allies to see that no
premature peace is allowed to rob them of the fruits of their great
sacrifices. For, be it remembered, their real object is not so much
victory now, except inasmuch as victory will enable them to gain
security in the future. We do not want a world kept perpetually on
tenterhooks by Germany's exhibitions of the "mailed fist"; and unless I
misread entirely the signs of the times, I do not think we are likely to
have it. Germany will have to be dealt with after the War, and no
feelings of pity or consideration for a defeated enemy can have any
influence on the settlement.
For years past Germany has deliberately elected to make economic war in
times of peace. Of this we have no reason to complain; a country's
fiscal arrangements are a matter for itself. But out of her economic
war Germany grew rich and strong enough to wage military war, and she
will do so again unless we and our Allies take steps to stop her. Now
in this matter old shibboleths have got to go by the board, and there is
every indication that, not as a matter of politics, but as a mere matter
of self-preservation, both Britain and the Allies are preparing to fight
Germany in the future with the weapon which in the past has proved so
successful against themselves.
There are very few things indeed produced by Germany which Britain or
her Allies cannot produce for themselves, and I have no hesitation in
saying that for the future our fiscal watchword ought to be, "The Allies
first and the rest nowhere." I do not want to see this or that party
snatch a party advantage out of our old quarrels on the subject of Free
Trade.
I have every hope that as a result of the War many of our old suicidal
party divisions and petty bickerings will disappear, never to return;
and for this reason I hope--perhaps it is hoping against hope--that when
the War is over we shall consider our future tariff system not as
Liberals or Conservatives, but as Imperialists pure and simple.
It is true, speaking broadly, that the Liberal Party as a whole is so
deeply pledged to Free Trade that any reversal of its policy on this
subject must be a matter of grave difficulty. But the question is no
longer Free Trade or Tariff Reform; the question to-day is, or at least
in the near future will be, the maintenance of Britain's commercial
prosperity against German attacks which are sure to be renewed the
instant peace is declared.
There are those who think--the wish is father to the thought--that
Germans will be so unpopular after the War that there will be no risk of
their doing business in any British territory, and that many of the
neutrals even will refuse to have dealings with them. I think it is
undoubtedly true that in many cases and in many countries Germans will
find that they are not received in the future as they have been in the
past. But the Fownes case shows us very clearly that there are
Englishmen who are not averse to trading with Germany even in time of
War when such trading is expressly forbidden. What reason have we,
then, to think that after peace is declared there will not be found
hundreds of firms quite ready to trade with Germans if by so doing they
can make a profit? And if this is true of England, can we blame the
neutral nations and our Allies if they are no more scrupulous?
Our policy must be to make such trading impossible because
unprofitable--firstly, to encourage our own business men throughout the
Empire and the business men belonging to the nations that are allied
with us, and, secondly, to prevent Germany gaining in the commercial
world a position which will enable her again to grow so rich and so
strong that she will be enabled in her own time again to menace our
security.
There is only one way to secure that end, and that is by a preferential
tariff which shall operate in all the Allied countries in favour of
Allied goods. At whatever cost in the sacrifice of long-held political
convictions, some such measure is imperative if we are not to be faced
with the prospect of another and more terrible war just as soon as
Germany feels herself strong enough to wage it.
Now it is very significant and very important that at least two
Ministers whose Free Trade proclivities cannot be suspected have warned
the country that in the future we shall see great alterations in our
fiscal policy. Mr Runciman and Mr Montagu have given expression to
very similar views, and perhaps I may quote a few words from the speech
which the latter made at Cambridge, when he said there were two topics
of enormous importance that every man, Liberal or Conservative, would
have to keep an open mind upon under the new conditions.
The first (he proceeded) is the fiscal system. It cannot have escaped
notice that in the House of Commons last year Liberal Free Traders and
Conservative Tariff Reformers, leaders of both parties, expressed
their opinions that the old economic condition of the relationship
between the different parts of the globe would be altered after the
War, and without saying to-day what the answer will be to those
problems I will say that it is not a part of Liberalism not to
recognise altered conditions and circumstances, and to revise or
perhaps strengthen ourselves in respect to the new conditions which
may arise. We in the past conducted trade as a peaceful pursuit, and
treated all nations as nearly as we could equally. But look at the
history of this War and see the use Germany made of her trade, and
just ask yourselves whether we can ever afford or dare to let that
happen again.
Now, when he made that speech Mr Montagu was speaking to an assemblage
of Liberals, and it is not without significance that his remarks were
received with loud cheers. There is, indeed, no doubt whatever that
Liberals and Conservatives are rapidly drawing nearer together on this
great question, and the outlook for a solution along truly Imperial
lines is brighter than it has been for many years past. So great are
the changes which have been produced by Germany's mad ambition and
greed!
Even Manchester, the home of Free Trade orthodoxy, has revolted against
the idea that there shall be free trade with Germany after the War.
The Chamber of Commerce of that city has by an overwhelming majority
declared itself opposed to anything of the kind. In London a great
meeting of business men at the Guildhall, presided over by the Lord
Mayor, has called emphatically for a policy which shall smash for ever
the German commercial-military system, shall formulate action for the
defence and improvement of trade after the War, and shall improve our
commercial relations with the Overseas Dominions and the Allies. A
strong subcommittee of the Board of Trade has reported emphatically in
favour of preference for our Allies and in favour of tariff protection
for all industries which are of national necessity. And the committee
adds, very significantly, "In view of the threatened dumping of stocks
which may be accumulated in enemy countries, the Government should take
such steps as would prevent the position of industries likely to be
affected being endangered after the War or during the period required
for a wider consideration of the whole question."
This can be done, in the committee's opinion, by import duties which,
directed against German and enemy products, would go far to shut them
out of the British Empire. The committee even goes so far as to
recommend that certain goods coming from enemy countries shall be
absolutely refused admission.
We have shown ourselves in the past very far behind the Overseas
Dominions in our willingness to advance the cause of British trade for
British traders. We must do so no longer. The enormous contributions
the Dominions have made to the Empire's cause imperatively demand that
in the future their devotion shall be recognised, and one of the
subjects upon which they feel most keenly is that we do not at present
do enough to encourage their young but rapidly growing industries.
If we adopt the policy of "Empire goods for the Empire," we shall draw
still closer the bonds which unite old England to her younger sons. And
surely, putting our own self-interest aside, our gallant Allies have
some reason to look to Britain for help in fighting the German octopus.
They as well as we are vitally interested in making peace secure after
this terrible struggle; and just as the War has been in the main brought
about by Germany's economic expansion being turned to evil purposes, so
peace will be secured only by her being prevented from waging economic
war in the future. And the best way to secure that end is to establish
in the British Empire and all the Allied nations a tariff wall that
shall amount to a virtual boycott of German products of every kind
whatever. There will be no reluctance on the part of our Allies to join
us in such a policy; Russia, indeed, has already announced that her
trade is closed to Germany for all time.
There is another reason why such a boycott should appeal specially to
England. During this War we have made advances amounting to many
hundreds of millions to the Allies who are fighting with us in the cause
of civilisation. That money will sooner or later be repaid, and on
every account it will be best repaid in the way of trade. The more
closely we can, after the War, confine our foreign trade to our Allies,
the more easily and the more quickly will they be able to reduce their
indebtedness to us. A lasting commercial compact between the Allied
Powers will not only be a powerful financial help to all of them, but it
will be perhaps the most powerful instrument that could be devised for
preserving the peace of the world.
We have seen during the past few years what the Germans meant and have
done by the methods of "peaceful penetration." Unless some remedy is
devised those methods will be put into operation again directly after
the War. Antwerp is a standing case in point. Belgians and French
alike denounced the insidious plot to make of Antwerp a purely German
port; but although ninety per cent, of the trade was handled and owned
by Germans, and brought no profit to Belgium, the scandal--for it was
nothing less--was allowed to continue. In England, especially in
London, and in our Dominions we have seen the same evil. The case of
the Merton firm, some of whose associates had secured practically the
monopoly of the world's trade in base metals, gives us an object-lesson
which I trust we shall not forget. London traders can tell strange
stories of "peaceful penetration" of British industries. They know how
countless German clerks came over to work at low wages "just to learn
the language." They found out too late that these clerks all received a
subsidy from the German Government, that they were really German
commercial spies in the pay of rival firms, and that any employer who
admitted these aliens into his establishment was sure soon to note a
falling-off in orders, due to the alien clerks having access to
confidential correspondence and advising their paymasters in Germany
accordingly. And those self-same clerks received from Germany a premium
if they married English girls! Now no tariff will furnish absolute
protection against such methods as this; the British trader will have
himself to thank if he is caught again by the same device. But we have
to remember that the Hun is amazingly ingenious in every description of
underhand work, and that fresh plans will be devised if the old ones
fail. We must take measures accordingly. And one of those measures
must be a stringent revision of the law relating to naturalisation. We
want no more Germans naturalised in this country for many a long year to
come.
We want no more Germans over here acting as spies in either the military
or the commercial field. We will tolerate none. Further, I hope that
after the War is over we shall see an effective passport system
introduced which shall apply to all foreigners, and that before any
German or Austrian is allowed even to reside in the country he will be
compelled to obtain some kind of guarantee of good behaviour from some
responsible English firm. Only by some such means can we make it
difficult or impossible for the worst class of our enemies to swarm over
here directly peace is signed.
Coupled with efficient passport restrictions, I hope to see an effective
check put upon the admission of undesirable aliens of any and every
nation. We do not want a lot of foreign wastrels whose countries are
only too glad to be rid of them swarming into England to flood the
already overcrowded labour market and, willing to live in hopeless
penury, bringing down the price of wages here to the detriment of our
own people. Something has been done of late years to reduce this
scandal; I hope still more will be done in the future.
Then we have the question of German-controlled firms operating under
English names and with English registration. This system must
absolutely stop. Whether it will be possible for German firms openly to
trade here after the War I do not know, but at any rate we must have no
more Teutons posing as British, and Huns acquiring control of British
industries. The name "German" shall be an everlasting stigma. The
powers which the Government now possess to control any firm shown to be
of enemy nationality should be continued, and there ought to be devised
some means of putting an end to the scandals which for years past have
given the Germans unrivalled opportunities for worming their way into
the English commercial world.
I have no doubt whatever that many reputable British firms will in the
future hesitate very considerably before they do any business with
Germany. But we have to recognise that there are others who will be
less scrupulous, and who will reck nothing of the danger to the country
if they see the chance of turning a more or less honest penny. Those
are the people against whom, in the interests of our Empire, we have to
be on our guard.
We have ample evidence that the awakening of the British commercial
community to the dangers which will threaten it immediately after peace
is declared has aroused the utmost consternation and resentment in
Germany. That is at once its best justification and its strongest
recommendation. The Germans have openly boasted, both before and since
war broke out, that British firms could not do business without certain
goods from Germany. The fact that we have done so for the past eighteen
months is sufficient answer, and it is enough to show that we can do so
in the future.
It is true, of course, that we had, weakly enough, allowed ourselves to
become dependent upon Germany for scores of German-made articles. Such
vital necessities as chemicals of various kinds and the aniline dyes are
good instances. Even now we are suffering from the lack of some of
them. But there is no mistaking the fact that we are very rapidly
finding substitutes for what we formerly imported from Germany. The
making of British dyes, for example, is progressing by leaps and bounds;
and there is no doubt that if our traders are given half the
encouragement that is given to German traders by the German Government,
they will very soon show that they have nothing to learn from their
German rivals. Every day we get new evidence that British firms are
more and more completely adapting themselves to the altered conditions,
and laying down extensive plant for the manufacture of just those
articles we used to purchase dearly from our Teutonic competitors. That
policy must be ours for all time.
What Germans have done we can do. The German is great at imitating and
improving, but he has little originality; he is like the Japanese, quick
to see a good thing and adapt it, but not so quick to invent. We have
to see for the future that we are as quick as he is to adapt and a great
deal quicker to invent, and unless we do so we shall in a very few
years' time see arise in a new form many of the troubles which, if we
handle the commercial position aright, ought never again to disturb us.
"Never again" must be our watchword in dealing with the accursed German
competition. Our people must be educated to a permanent boycott of
German goods; if they will not learn, they must be compelled. Our
manufacturers must be protected against the policy of dumping bounty-fed
goods throughout our Empire at rates with which it is impossible for
them to compete because the German Government makes it possible for the
German trader to sell even below cost price with the object of ousting
his British rival. Socially and commercially we must be protected
against the flood of aliens who have already done untold harm to British
labour. All this we have done for eighteen months; we must do it in
perpetuity for the future.
But when all is said and done we cannot make our position in the world
secure unless our trading classes are prepared to revise very
considerably many of the methods they have adopted for years past. The
time when British goods sold merely because they were British, and
therefore the best on the market, has gone for ever. To-day commercial
competition is keen beyond anything of which our forefathers had
knowledge, and our methods unfortunately have not kept pace with the
changing circumstances.
There has been too much of the old happy-go-lucky style about us; we
have been too much inclined to rest upon our reputation, and to think
that because all was well fifty or a hundred years ago, all must be well
to-day.
The sooner that idea disappears from the minds of our business men the
better it will be for them and for the Empire. Never was the King's
message, "Wake up, England," more urgently necessary than it is to-day.
Proper measures taken by our Government will make it easier for us to
beat the Germans in the future in the field of commerce. But no
measures which Governments can take will wholly replace business ability
and energy. Just as, given proper weapons, our soldiers can beat the
Germans in the field of war, so we can beat the Germans in the field of
commerce if our commercial soldiers are given weapons adequate to the
task they have in hand. But neither the weapons of war nor the weapons
of commerce will avail us _unless they are used by men with clear heads,
strong hearts, and unbounded energy and determination_.
------------------------------------------------------------------------
As this volume goes to press the Titanic struggle for Verdun--the battle
which may well decide the War--rages with undiminished fury. What the
outcome may be none can say, but, at least, the omens are good. After
over a fortnight of furious fighting, after the expenditure of many
lives and enormous quantities of ammunition, the Huns have utterly
failed to pierce the French defence. The troops of France are fighting
like heroes: her generals are serene and confident. Germany has staked
her all on this gigantic thrust. Failure would spell national
depression on an unparalleled scale, and add to the German Government's
growing difficulties. And if Verdun falls, will the victory be worth
the price? We know that almost any position can be taken if losses are
disregarded. But whether Verdun will ever be worth to the Germans the
price they will have to pay for its capture is, to say the least of it,
exceedingly doubtful. But the Germans are deeply committed to the
venture, and it may be that they will consider no price too high to
pay--for they hold "cannon-fodder" cheap--in order to save what remains
of their badly shattered national, military, and dynastic prestige.
The End.