TRADE CONDITIONS

Gisborne Times, Volume LXI, Issue 9844, 24 October 1924, Page 3

TRADE CONDITIONS

PLEA FOR- EMPIRE PREFERENCE

BRITISH TRADE COMMISSIONER’S STRIKING ADDRESS.

“General Trade Conditions’’ was the subject of the interesting arffi illuminating address given by Mr. Neel Elmislio, His Majesty's Trade _ Coffir missioner io New Zealand, before a large gathering in the City Hall last evening. The lecture was tghven under the auspices of the Gisborne Chamber of Commerce.

In introducing the visitor, Mr. C. G. Bloorc, president of the Chamber of Commerce, said that he was pleased to welcome the Commissioner to Gisborne. Mi*. Elmslie’s visit, lie said was to foster British trade with New Zoalaii'd/and trading within the Empire. One would have hardly thought that it would he necessary to endeavor to foster inter-Empire trade after the experience of the last ten years. Before the war the money spent by tjie colonies in German goods 1 , went to’ build up a great nation l that was to make.war. on the Empire later on, and .although goods were obtained cheaply, the Empire paid a heavy price in lives for assisting to build -Germany. Britain was entering on the greatest crisis, as she had the greatest burden of taxation' in the world. At present she was the only country keeping up her payments and the only way the Dominion could help to reduce this burden was to buy British goods. j Mr. Elmslic said that lie proposed to speak on the Department of Overseas Trade in New Zealand, and of the social and economic conditions affecting traffic. His views would naturally be restricted, being a civil ser-vant,-in that he could not touch on political questions land there were.certain' phases of economic policy that were closely associated with politics on which lie could not express any opinion. ! The Department he served, said the lecturer, the Department of Overseas Traffic, was part of the British Government service, the cost of which was borne by the taxpayer at Home, and was acting in the interests of British trade. The Department arose out of a commercial intelligence department in London a.s a. result of the Imperial Conference in 1907. and its extension to the Dominion' was advocated by Sir Joseph Ward. The Department attempted to give direct assistance to all traders. "There were Commissioners in every country, and the functions of the Department were extremely wide. The instructions' to these officers wore to do everything possible to further British trade throughout the world. A.s regards trade within the Empire, and particularly between the-Dominion and Britain’, it was quite clear that no propaganda work was needed in New Zealand as the people were prepared to purchase as much as, possible fromBritain. He also had to give information to the representatives of British firms .and also had to advise merchants arffi traders in New Zealand concerning the sources of supply at Home. The British manufacturers also wanted to know .what New Zealand was producing and why they were not getting a share of the trade. This information he, as Commissioner, had to supply. The Department of Overseas Trade exercised no control of trade, and on this point New Zealand merchants seemed to he un- . tier a misapprehension. The Department did mot believe in control of trade and did not attempt to do so. , At the Imperial Conference •in 1917, the British .Government made the offer to all traders to make use of the Department. The service was made available to tlve Dominions equally with other countries in the world. ; With the Dominion’s growing ox- 1 port trade, information concerning foreign countries with which New Zealand might i>c in negotiation could he obtained through the Department. ; The difficulties with which New Zealand had to contend all arose out of the war arid the main factor was the disturbance of confidence. In Britain ! this had led to unemployment, and although it might be thought that unemployment affected - only Great Britain that was ryot so; it had been equally severe lie all manufacturing countries in flic world. At one tun? at Home, unemployment was very j serious hub the. position was gradually : improving. The cost of maintenance . of dependents ’of unemployed in 1 BritairJ had been over £100,€00,000, and consequently this was reflected on the price of all the manufactured goods. -If maintenance could he reduced, the price'of the manufactured goods would be lowered accordingly. | The principle of the dole was not j nearly .so vicious as had been made cut. ... I

The cause of unemployment was due directly to the decline of the trade. In Britain, with its great export trade, one man in three was working for export. In countries where most of the manufactures .were absorbed within-their borders unemployment did not affect them to the same extent as Britain. With the decline of world trade to the extent of 25 per cent, it would take a long time before Britain recovered her former position. Britain’s export trade had declined about 25 per cent, in proportion, but despite that fact the Old Country was now doing as much trade proportionally as ever it did. and when trade recovered Britain would regainher former position.

As a result or the war, earth conn- ; try liad! become nationalised to a ' large extent and other countries risked, "Why should ivc purchase goods j from abroad ?” The intention was 1 admirable and worthy of support, but this affected the export trade of other ; countries with consequent. high tar- ! iff. The effects of high tariffs did not. prevent importation of manufactured goods, but it meant.the higher cost of , goods. It was net the levy that af- j footed British trade but the method J of imposition and the different?) t" on- • between British and foreign goods. j - Speakh.'g of the export of capital ■ from Britain, the .Commissioner said ! -that Britain had been able to finance undertakings in foreign countries, and comment had been made on the fact that mere finance had been -devoted to foreign countries than in the development of the Empire. That criticism, however, was not justified, as was shown by the figures for the last four years, ' which he quoted, and which showed that two-thirds of British capital liad gone to the Empire. The only Government regulation dealing, with British capital favored investment of the- Empire. Anything that assisted the increase of British | trade and the decrease of ur.ismployment would he welcomed at Home and the people of Britain were doing their best to attaint this end. Great Britain was by far Now Zealand’s best customer for produce, taking over 80 per cent, of the exports. In certain lines- Britain was the greatest buyer and the' Dominion’s prosperity was therefore dependant on the Home country’s condition. Not only did Britain buy the largest proportion) of New Zealand’s produce, but she gave the best price for the goods. In 1923 the'Hlolted Kingdom took 371 millions sterling of New Zealand’s exports, and in return the Dominion had bought 22 ; f million sterling of goods front the Old Country, which left a big ba'ar.ca in the Dominion’s favor. New Zealand, like other countries, was 'offering from the exchange, ami that was due, to the unequal distribution of the Doir,iir.'>ion’s trade, which was one of the factors why.the exchange was so adx verso to this country; . It was in C • < -mV' bauds to. remedy that defeat. Tf New Zealand' could reduce her nurrimsos from foreign countries it would help Britain in- three ways—b\- obtaining better -prices, buying fre> ;> .Britain and rc-

during unemployment, thus getting their goods more cheaply, and gradually improving the exchange. The Commissioner appealed to the New Zealand people to make inquiries I if goods could be obtained in Britain j before placing orders in oilier coun- ! tries. He realised what sacrifices New Zealand had made iiv the past, arJd the preference which had been given to British goods, but lie thought that if a little extra trouble were taken Britain would get an even greater,share of the- Dominion’s trade. He also desired to ask Now Zealand people to assist the Old Country, by advising liis’ Department of any difficulties that would affect British trade and ho would be pleased to supply any information that would tend to develop trade within the Empire. (Applause.) At the conclusion of the Commissioner's address a number of questions were asked. Mr. Toneycliffe asked if the British Manufacturer would coniform to orders from the Dominion and would he remain conservative and turn out his goods as in the past. In reply, iMr. Elmslic said that the British manufacturer was conservative. His conservation, however, was carried too far, but he had been fully employed. But n'ow the great majority of manufacturers were prepared to work to orders from, the colonies. As an-indication of manufacturers* desire for markets, he stated that more principals’ of British firms had visited New Zealand in the last twelve months than in the past five years. As regards mass production, this tended towards standardisation of pattern, and any firm that invested capital to produce standardised articles must necessarily become conservative and would not change its patterns for small orders. At any rate Ifc had been assured by the principals. of British firms that a large proportion -of the manufacturers at Home were prepared to make goods to Colonial orders provided the cost v-as not too b igh. ’ j Mr. Bloorc asked wliat would be the result of the dumping' of German goods on British markets. Mr. Elmslic: You arc asking me to be a prophet. It is impossible to say. It was evident that there bad been' attempts to capture British industries in certain lines. According to free trade theories of the manufacturers, the export trade was so overwhelmingly important that the British trad- , or had to hold his own on level terms ’ without protection. They could not stay in a business that had been in operation! for sixty years, and a.s a result of fierce competition the manufacturer had been compelled to reduce the prices and increase efficiency and were prepared to hold their own. In many lines, such as engineering, Britain' could undersell Germany. One heard a lot about French textiles going to Britain, but be wished to point out that there were less French woollens going into Britain now than in 1914 and France was having more extensively from the Old Country, Germany was now returning to her former position of being Britain’s third best customer.

Mr. G. Smith said that in pre-war days a lot of machinery was made in Germany and assembled in Britain and sent out as British goods. What steps were being taken to prevent a recurrence of that? Mr. Elmslic said that lie mas doubtful if any machinery was made in Germany and taken to England for e.ssemblir. ! g, but be admitted that certain parts and small lines night have been obtained from Germany and Belgium. He did not think that any machinery had been manufactured in Germany, assembled in England, and sent out to the colonies as British goods. Il’o did not think that any protection could be- given, as there were r.o regulations preventing these goods coming in. but all goods bad to have a certificate of origin'. It bad been announced by the Prime Minister that he intended increasing the volume of British goods from 25 per cent, to 75 per cent., which would solve the difficulty to a large extent.

In proposing a hearty vote of thanks to Mr. Elmslic, Mr. L. T. Barnard said that they were indebted to the Commissioner for visiting Gisborne. They had been privileged that evening to hear an ambassador from the heart of the Empire give a comprehensive survey on trade conditions and undoubtedly one arffi all bad benefit ted to a great extent. He noted with pleasure that Mr. Elmslic had taken stock of the country in Poverty Bay and on his return to the Old Country would bo able to enlighten the manufacturers and people at Home on 1 the potentialities of this district. The motion was carried by acclamation. In returning thanks, Mr. Elmslic said that lie would be pleased to .relate the beauty and productivity of Poverty Bay, in l fact the whole of New Zealand, to the people at Home. (Applause.)