The Dominion THURSDAY, DECEMBER 9, 1926. TARIFF WALLS AND TRADE

Dominion, Volume 20, Issue 64, 9 December 1926, Page 8

The Dominion THURSDAY, DECEMBER 9, 1926. TARIFF WALLS AND TRADE

The effort of the local industrial association to take advantage of the visit of the Duke of York to secure an advertisement for New Zealand-made goods is a healthy sign of the new spirit ot enterprise which has developed in recent times amongst out manufacturing interests. It is quite legitimate publicity, lor even if it may not be possible to carry through the proposal in its .entnety it serves to bring under notice what we arc capable ot doing should opportunity permit. There is, however, a tendency in some quarters to disiegai d the economic side in proclaiming the virtues of encouraging local industries. It was obvious, for instance, that even in the task of outfitting our coming Royal visitor the advocates of the scheme were embarrased by the fact that certain articles were not common y manufactured in this Dominion, and would have to be specially made and presumably at a greater cost than they could be procured elsewhere. It is a small matter, but it serves to illustrate a wrong perspective. We should concentrate our efforts on what we can best produce in competition with the outer world. Recently the appointment of a Commission to revise our Customs tariff was announced. The fact is of importance, because the woik of the Commission will have an influence on practically all sections of the community. It may be taken for granted that efforts will be made to secure greater protection for some of our local industi les. This in some cases may be justified; but it must be plain to all who have given the subject any thought that the whole subject of the encouragement of our secondary industries requites close and expeit examination before the country is saddled with any additional burden of Customs taxation of a protective nature. What are the manufacturing industries in this country that are rcallv worth encouraging on economic grounds? A comprehensive review of this question is a matter of great concern to. the whole country, and no revision of the Customs tariff can be cat lied thiough on sound lines without a thorough investigation by those qualified to advise as to the lines which our industrial development can follow to the best advantage. . ■ In October last a manifesto of great significance was issued by leading bankers and industrialists of fifteen nations, including representatives of Britain, America, France, and Germany, on the subject of tariff barriers, which created a great impression.. In the plainest possible terms these leaders ip the world of finance and industry declared that a free exchange of trade was the only means of restoring world prosperity and the general betterment of the people of the different nations. . Certain extracts from the manifesto are well worth quoting:— It is difficult to view without dismay (the document, ran) the extent to which tariff barriers, special licenses, aud prohibitions since the war have been allowed to interfere with international trade, and to prevent it flowing in its natural channels. . . . Prices have risen, artificial dearness has been created, production as a whole has diminished, credit has contracted, and currencies depreciated. There can be no recovery in Europe until politicians realise that trade is not war, but a process of exchange, and. that in time of peace our neighbours are our customers, and that their prosperity is a condition of our own well-being. . . . Restricted imports involve restricted exports, and no nation can afford to lose its export trade. The manifesto was directed chiefly at conditions in Europe, but in certain respects it has wider application. In New Zealand our tariff is used as a means of raising revenue as well as for the protection of local industries, and this consideration cannot be ignored. It is highly desirable, however, that in the Customs tariff revision now under consideration there should be a clear-cut policy discouraging any attempt to increase our tariff burdens.