COMMERCIAL.

Press, Volume LXI, Issue 18415, 23 June 1925, Page 10

COMMERCIAL.

CUSTOMS TARIFF.

BRITISH PREFERENCE.

QUESTION OF RATIO. As to what the ultimat-e terms.'of-'the British preferential traiff will be' on goods .entering New Zealand' is still in abeyance. This question of tariff preference has been before the" Government for some months.

•Last September it was-announced in the New Zealand and Commonwealth Parliaments.. that both Governments had decided to>,adopt the figure of 75 per cent, of Briti&U material and / or labour as the basis of the British preferential tariff instead of the existing 25 per cent/.basis. Later, Canada asked that the basis should be 50 per cent., which waa what the New Zealand Government, had originally proposed. Australia, however, advocated that 1 to qualify for entry as British goods, 75" per cent, of the labour or material should be British. Since then representations have been made that this ratio is too high be-ause British industry is to~a. large extent dependent upon foreign raw, or partly-manufac-tured materials. Presumably, .-. Australia's request' for a 75 pel cent, basis was actuated because of a desire to protect locat industries,. but' Canada's objection was' raised oh account of the fact that American capital has been expended in establishing industries there, so that advantage could be taken of preferential tariffs, and a high qualification would prejudice the-volume of her export trade. .-,..• >•'■'.. Although the 25 per cent.,-basis may. be considered to be too low, apparently 75 per cent, is held to be too high, and" the Governments concerned are not yet agreed as. to what the qualification should be. In the middle of February last it was announced. that in view of the importance of the. matter, and the fact that. discussion with the Australian Government was still proceeding, it had been decided to postpone until October. Ist. 1925. the date upon whi-h the amended condition to 'be . decided upon should take effect. On Thursday -it. was notir fied in the '-'Gazette" that a further postponement has' been made until January Ist, .1.926.. This means that the-25 per cent, basis will remain in force tuitil December 31st next.

, Until April. Ist, 19'26. Bar. bolt,-rod. angle, tee, channel, girder, hoop, plate. or ! sheet iron, or steel and wire, and other goods, ninde-Vholly in Great Britain or other British possessions, from any of the 'following kinds of iron or staisel of foreign origin—viz., pigs, ingots, billets, and blooms—will be regarded ns wholly manufactured in such British- countries for the purposes of clause 5 of tie regulations; Regarding paper made wholly in Great Britain, or in any.other British possessions, from pulp of foreign origin,, this will l)e considered, until April Ist, 1926, to be wholly manufactured in such British countries for the' purnoses of clause 5 of the regulations. This means that any -of the articles mentioned will, Jf the other conditions are complied with, be entitled until March 315t;1926, to be entered for duty on importation into New Zealand tinder the British preferential tariff,, irrespective of the factory or works c6st which is represented "by expenditure in British-m»terial arid/or labour." rfjWellingtpn ''Evening Post."

AUSTRALIAN FINANCE.

"STRANGLE-HOLD OF

MONETARY TIGHTNESS."

''376: could, do with a Mussolini in 'Australia for a few months, for many

reasons, one of them to check the inso-

. lenoe of bffiqo. If .we, had a Federal ' with a little firmness in his this strangle-hold of juohe'tary tightness which is gripping the, throat; of Australian enterprise, .would r be considerably relaxed." With V Xjhqeejppinted sentences (reports the Sydney .'"Sun"), Mr G. Crowley, managing director of the City Mutual Life As&urafice fjociety, Ltd., ended a vigorous -and critical address from the chair at :-the ■, aiinual meeting of- policyliolders.'Alluding to the present tightness 1 , of money, Mr Crowley said the ; high' 5 rate/of interest now current ''roust;, come back within a measurable

distance of time, to"* approximately nornia£ figures. The last time 1 said ithat," he-added, '•some scoffing unbeliever, through the Press, asked wiry the Orty Mutual didn't set a good example', am ;lend: money at 6 per cent, or thereabouts;. If wo put a shilling ad- . vertisoment in the paper, intimating thatv,wo had;£1,000,000 available for investment* at 5 or 5J .per cent.—and that was. a good• rate : of interest a few-years ago—Jthere would be a riot in-the street, and the-£1,000,000 would be-absorbed m tern minutes.

•. "Then,'' /continued the : chairman, J - ;of disappointed applicants \ would tear: the. place. down and com- ! plain that-they;had. been fooled.". Mr tJrowley .reminded . the meeting. that Australia is. confronted,this year with -the - : necessity- to find' something like £58,000,000 to redeem war debts. "You only too-well,'' he sajd, "that can't-.gay ip tt or any material poriipu. of; it; sq we'Bnall have to, ask the > poopie'Qf Australia tbi renew the P.N. a Well,.,let?s gqi..'about it like.normal buidness}, men, ';'}. and - not resort to methods adopted by'- the country, circus proprietor. .Surely it is unnecessary to im^. •spruikers' of our leading banks; to/turn their; premises into advertising hoardings and proclaim our poverty to the "wond /Surely we don't want to appeal, cap in hand; to the farm labourer and the housemaid, to # abjure their !■ picture show and their jazzing, and help i to. Save Australia: by contributing their' f lew'shillings a week." We have plenty • cf bigger'.work for our banks "to. do, and as for the farm hand and the maid of all/work.,,let them have their picture Hbow and their* jazzing if they want it. And then if they have anything to spare-they, will'probably put it- away in one of-the "savings banks, where already they and, their kind have de-posited-over £400,000,000. - •; ■ «'in. some way we are like lions led " by asses who weary us with oftrrepeated wise 8aw 8 - and-modern instances. Let ' :the Treasurer ask bondholders of the sixty-eight milUons each to: renew his ■ mortgage. Their loans represent mortAustralia—the greatest and inchest country on earth. /The bulk of them,. 95-per cent, or more, are Australians interested in Australian prosperity. I think that at the lowest esti- > mate £58,000,000 will be renewed. I can't add f that they will renew at the former raje of interest—4s per cent.; but I am sure the vast majority of / them will renew at the rate of interest now current. ;; . . , .'JThat. leaves £10,000,000 to be found. I am reasonably>.Bure that ..the estimate is high j it won't be so much, but Jet it go/aV that. The Federal- Treasurer should gently, but firmly, ask the banks to contribute pro rata the balance required. To do so the banks need not fhrnrone single:sovereign of the Bullions they, nave recently imported jiit*i Australia; : The cheques of the are-paid., to people requiring their, money. ; '&BaMs» of' their -own banking, institu- - tiotej'and although the credit thereby ■> xreat<Bd-niay possibly be used to develop channels- of . industry, it.- cpmes ■back toexactly the same thing in the . •sd. It all goes back to lie banks." v. ■:.:.'■•■■''■ •" t" ■ • . '