The World in Chains: Some Aspects of War and TradeMavrogordato, John
Philosophy
The World in Chains: Some Aspects of War and Trade
Mavrogordato, John
Profiteering; War -- Economic aspects
[Footnote 42: Cf. the many stories of beef and other rations being
supplied to troops in such quantities that the units responsible for
their consumption were obliged to bury them. These stories come mostly
from Flanders. At home the same superabundance may have been the undoing
of many a Quartermaster-Sergeant, who, not knowing what to do with such
a plethora of beef, and having a proper superstition against throwing
away good food, was tempted to sell it for about a penny a pound to the
local butcher.]
[Footnote 43: And the fact that they are doing so at the public expense
is, of course, only an additional advantage to the traders who supply
their needs; as they do not risk losing any of their money through bad
debts.]
Sec. 4
War stands to benefit Neutral as well as Belligerent Nations but not to
the same extent
In Western Europe at least all markets are practically open markets. No
tariff however scientifically graduated will really divert the natural
flow of trade to any considerable extent.[44] Consequently it might
appear that all nations stand to benefit in the same way, but in varying
degrees, from the intense local demand set up in the nation at war. Thus
British Trade was exhorted in a sincerely rapacious article by Captain
Dixon-Johnson[45] to snatch the opportunity presented by the Balkan War;
and the unparalleled boom in American trade during the present war is
another obvious example. This suggests at once that the benefit
occasioned by war is not a national benefit, diffused vertically through
every class of the belligerent nation; but a class benefit diffused as
it were horizontally through the commercial strata of all nations within
supplying distance of the centre of disturbance. On the other hand, of
course, the immediate local demand is stronger than the demand
communicated to remoter markets and more easily supplied; in other words
the commercial class of the belligerent nation are more immediately and
more intensely benefited by the state of war than the same classes of
neighbouring nations, although in war as in peace the commercial classes
of every nation are one.[46] Also the outbreak of war, even if it does
not entirely sever a country from foreign sources of supply, is bound to
cause a certain dislocation; if communications are not altogether
interrupted they are more difficult and uncertain than in normal times;
so that the trade of the belligerent country is always given a greater
impetus than that of its neutral neighbours, and in such cases a
particular industry which has been threatened by the competition of
foreign imports may be actually rescued from extinction. Even the
temporary dislocation of trade is a benefit to trade in the nation at
war; for it enables existing stocks to be sold at exaggerated
prices.[47]
FOOTNOTES:
Public-domain text, read in full here on John Shaqi.
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