protection of their interests by the State who are the most 
vociferous in demanding the complete freedom of private 
enterprise. 
Even so, the State cannot in the shaping of a 
national policy disregard the economic importance of 
the enterprises coming within its purview. One of the 
evils of to-day is the misdirection of capital and credit to 
wasteful purposes or in directions which have little or ne 
economic or social value. It is the duty of the State to ad- 
just these anomalies. Further, while insistent demands are 
made for the Governmient to guarantee credit to Russia and 
other countries to construct and expand their industries, 
the possibilities of a similar policy at home appear to be 
overlooked. 
It is not without some significance that there.is not an 
iron and steel industry in the world that is not accorded 
some form or degree of security in its home market. This, 
however, may be provided in more than one way, and 
undoubtedly the best method of obtaining fair trading 
conditions and security is by international agreements,, 
and these can be combined with due protection for labour 
and safeguards for the consumer. 
Where, however, countries refuse reasonable agreement, 
as an alternative to uneconomic competition, other alter- 
natives to control the situation must be applied. 
If therefore the attitude of British iron and steel manu- 
tacturers is that all that is necessary to remove the diffi- 
culties of the industry is to impose protective tariffs, we 
cannot subscribe to that view. Such a short-cut method 
of solving a complicated problem has the appearance of a 
gambler’s throw and one which would, in our judgment, 
make the industry the by-play of political factions and 
intrigue and provide ‘a shelter for inefficiency and incom- 
petence to the ultimate detriment of the more progressive 
elements. 
That, however, does not prevent through national 
machinery a proper regulation and control of international 
trade, or the formulation of international agreements. 
A well-organised and efficient industry would in itself 
provide a strong and authoritative medium of adjustment 
of competitive conditions and for securing such agreements. 
The present tendency is for these to be formulated without 
public knowledge or due regard for public interest. 
Realising the need for such regulation, we proposed to 
the Government in a letter addressed to the President of 
the Board of Trade in August last the following :— 
“That in connection with a scheme of national 
organisation, the Government shall set up an Imports 
and Exports Board, whose duty it shall be to nego- 
tiate with foreign producers with regard to inter- 
trading relations, and which Board shall be authorised 
to regulate, restrict or prohibit imports if the nature 
of the competition and other circumstances justify 
( 16)