"Yes, if they are run at a loss," Owasi replied, "and besides, some one must pay for that loss, and a loss to one nation instantly acts upon others. Freedom of interchange of trade is reciprocal, both nations gain or they wouldn't trade—and there is amity. When trade is restrained competition commences. Competition soon becomes jealous of the restricted territory and war begins. Commercial wars often begin with a tariff and end with a shell. It is at first a commercial war, but as its intensity develops the bullet and the shell come in. Artificial barriers are obsolete in these days of flying. The airship should be the peace-bringer of the world."
So Eastern and Central Asia developed into great producing nations with the consequent desire for trade expansion—particularly with Australia and with the markets of Western Europe.
The great Asiatic federation opened up close trade relations with Australia. This movement, strange to say, had been predicted in Sydney as far back as April, 1915, when at a public reception to some Japanese journalists, it was pointed out that a most serious moment in the history of Australia would occur when the Australian came back from the big job in Europe, that when he had put his gun in the corner and had taken off his coat for business, he would see the rapidly developing nations of Eastern Asia about to dominate the Pacific trade, and that he would then be wise if he decided at the outset to formulate a policy of peaceful progress and preserve the closest and most friendly trade relations with Japan and Eastern Asia.
Australia, therefore, joined in a trade treaty with Eastern Asia, but Western Europe refused.
It considered that the flooding of its markets with cheap-made Asiatic goods would mean serious opposition to home factories, which were being run under high wages.
Belgium alone stood for freedom of trade exchange with Asia. This single nation in Western Europe that had stood against Socialism was now a nation of great manufacturing capacity, a country of wealthy people, a haven for the thoughtful and the ambitious who were forced out of Humanist nations. Belgium was the centre of European invention.
It could foresee trouble in restricting Asiatic desires for trade exchange, and pleaded with the nations of Western Europe to open their ports. It was pointed out, that out of 300 of the wars in the history of the world, 272 were due to trade causes and only 28 were due to religious or other causes.
It was pointed out that freedom of trade between German States had made Germany so strong, that in 1914 it could fight a fifteen months war with the greatest nations of the world.
But the Humanist nations, being non-militant, turned a deaf ear.
Then a threat of war came from Asia!