IMPORT CONTROL

Gisborne Herald, Volume LXVI, Issue 20095, 15 November 1939, Page 12

IMPORT CONTROL

PROTEST BY FIRM WIDESPREAD EFFECTS i LOSS OF EMPLOYMENT LETTER SENT TO MR. NASH A cartoon by Minhinnick and a list of imported. goods which have been banned or heavily restricted as a result of the Government's policy of import “selection" have been com- , bined by an Auckland firm in a cirI cular being distributed to 3000 of its storekeeper customers. The circular indicates the effect of import control on the business of F. E. Jackson and i Company. Limited. Auckland, hardi ware, crockery and fancy goods merchants, and a copy has been sent to | the Minister of Customs, the Hon. W. Nash. • -

“The enclosed circular which we are ; distributing to 3000 of our storekeeper I customers indicates what your import control restrictions have done to us, | a typical importing hardware house,” j says an accompanying letter to Mr. Nash, signed by the managing-director of the company, Mr. Gairior Jackson. Reduction of Staff., | “We suggest that you and other members of the Government examine | this carefully as being an example of how your import control regulations | are wrecking import businesses like j ours, which have been established for 50 years, and whose proud record durj ing that period has been that it has [ been able to maintain its staff in its

j entirety during the many trade de- ! pressions that have occurred during | the last 50 years. | “Our third period import licenses (from January to June next will amount only to 15 per cept of the minimum requirements necessary for us to maintain our staff. Have you and your Government realised the serious effect that these restrictions must inevitably'have on the question of unemployment? “In the ship-breaking and scrapmetal section of our business, we had an average of 82 men employed for two years, but with the embargo on the export of scrap iron, we were reluctantly compelled to dispense with all of these employees. Now our importing and merchandising business is to be similarly affected. Out of an average staff of 33, we anticipate that by February-March we will be able to maintain five only, of which three will be the directors and only two employees. Failure of Control “Do you realise that the last to be unemployed are the employers—that the unfortunate people that are being hit first are the employees?” the letter asks. “We are very concerned indeed for those members of our staff who have served us loyally over many years, whose services we will have nc option but to dispense with because we will have no goods with which to trade.

“In our opinion there is one course only for the Government to pursue. The Government policy of control of imports and exports and credits accruing from exports has failed lamentably. After 10 months of Government stranglehold over trade, the position has steadily deteriorated. I' the Government has the interests o' the country at heart, it will realise that the whole system of control has been a failure; wash it out, and start de novo, freeing trade from the fetters of Government control and allowing banking and finance to be conducted by those who understand it, the trading banks, who would ration sterling exchange during the shortage. Widespread Discontent “The whole commercial community is seething with discontent over the mess into which the country has been landed as a result of Government control. If the Government cannot make a better job of governing the country than it has done, there is only one course open to it, to resign, permitting a new Government to be elected. The Government had been tried in the balance and found wanting. At present the country is headed for bankruptcy with the stark fear of widespread unemployment facing that section of the people engaged in trade and commerce. “P.S.—I think Minhinnick’s cartoon is excellent, don’t you? You will note that in the picture featuring 1940, our centennial year, there is no baby. Apparently they cannot afford that luxury. The tide, too, has gone out, and apparently there are no longer any pipis on the beach. We are certainly in a period of very slack water." The cartoon, reproduced at the head of the circular, is one entitled “A century of progress.” It is divided into two sections, one showing Maoris on the beach in 1840, watching a sail-ing-ship and waiting to trade for blankets and axes. The other section shows two tattered individuals in 1940, watching a modern steamer arrive, and hoping to obtain a few clothes or some hardware.