REPARATIONS AND BRITISH PROSPERITY.
• [To the Editor of the SPECTATOR.]
Sta,—The suggestion in your issue of August_ 9th under the above title is most valuable, but the BritiSh manufaeturer who wants to produce the goods himself will hardly be satisfied.
(1) Assuming the Government is able to increase the pur- chasing power of the British consumer by the whole of the reparations payment by Germany to us, and that the 'whole of that increase is spent on German imports, this importation of thirty millions or so of German goods will give an immense fillip to German imports 'generally and seriously increase the competition with the British manufacturer.
(2) Germany cannot pay France or other protected countries with goods because of their Tariffs. The goods which Shoidd be taken by these protected countries in payment of remr- ations can only, and must, come to England, the only Free Trade country. In other words, while Great Britain should only receive say thirty millions of goods, or whatever qur proportion of the reparations payment is, it will actually receive over 100 millions or whatever the total • paYment by 'Germany is. While the value of this excess will ultimately be re-exported in other forms to the protected countries to which Germany owes -it, the immediate effect is more com-
petition for British manufacturers. • '
(8) Even if these protected countries would receive the
actual goods, Great Britain does not want credits in these countries, but they, with their low exchanges, do want credits in London, i.e., it suits them admirably to have their repar- ations paid in London, but will be disastrous for us.—I am,
Sir, &c., T. H. MINSRALL. 34 Victoria Street, Westminster, S.W.
Mr. Peveril Turnbull writes :—" Why all this pother about what to do with German reparations if and when we get them ? Is not our present high taxation the very mischief, and the low taxation of Germans a scandal ? Then why not use the money to reduce our own taxation, and let the Germans be put to the necessity of raising theirs ? "
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