WORLD TRADE

Evening Star, Issue 21743, 11 June 1934, Page 9

WORLD TRADE

DANGERS OF ECONOMIC NATIONALISM LOWER TARIFF BARRIERS DESIRED Press Association —By Telegraph—Copyright NEW YORK, June 8. Addressing the British Luncheon Club, Mr S. M. Bruce said that good seasons, the rise in price of wool, and other improvements in economic conditions had encouraged Australia to launch out in a programme of more intensive production. Gradually, doubtless, the world would come round to the wisdom of lowering tariff barriers and encouraging an exchange of commodities that would not restrict their production. There was, however, a very conscious economic nationalism still prevailing, and realism demanded that this should be closely studied. America was the only country in the world so constituted as to be able to continue on a self-sufficient basis for any length of time. Other countries must awaken to the dangers of the position. Highly industrialised nations used to complain about the efforts of primary producing countries to encourage their secondary industries, but the encouragement of primary production to-day by industrial nations went much further with embargoes and quotas.

AUSTRALIAN LOANS IN AMERICA QUESTION OF CONVERSION. 1 NEW YORK, June 8. Having instanced during his address the part played in Australia’s efforts to recoup her position during the' depression, by the conversion of London and Australian obligations to a lower rate of interest, the Australian Press Association asked Mr Bruce what he had found to be the sentiments of the New York market with regard to similar conversions there. Ho said the position was very much different in that the relatively fewer issues floated in America were likely to bo called up before they were due. The fact that due dates were still a long way off made the question of conversion a wholly academic one for some time to come. He said he had had little or no opportunity of discussing trade questions in Washington. It was true that the Tariff Bill, giving the President reciprocal tariff powers, had been passed, but the whole thing was still in the melting pot. It was impossible to determine whether these reciprocal arrangements would be with individual nations, with groups, or with the whole world.

Mr Bruce stressed the fact that where America’s balance with Australia was in the former’s favour it could be expected that Australia would be in a surer position in the matter of negotiations.

Mr Bruce will sail for London tonight. ■