WELLINGTON NEWS

Hokitika Guardian, 7 May 1927, Page 1

WELLINGTON NEWS

tariff troubles

(Special to 11 Guardian.”)

WELLINGTON, .May a

The Tariff Committee is sitting in Wellington, and like the investigations made in other centres, evidence is being taken in private. Whether such procedure is in the public interest is open to question. However, a secret inquisition is being held and the report of the investigating committee is not likely to please all sections. It is somewhat remarkable that in all civilised countries tariff policy is the subject of keen dismission. Since the close of the war every nation lias erected tariff barriers, thus hindering the freeflow of trade and creating depression and unemployment. One of the principal reasons for erecting these barriers is the aversion to the. reduction of wages. It is believed that high larilfs help to maintain high wages, and so hold up the standard of living. A business man of keen perception and sound judgment points out that too often the “ standard of living ” aiul the ‘'cost of living” are too frequently confused. A reduction in wages would certainly reduce the cost of living by lowering the cost of commodities and services, but that does not mean that the standard of living will he affected. If with the reduction in wages there is a compensating fall in the price of commodities then the existing standard of living will he secured at less cost, but the standard itself will not be affected.

Any attempt to reduce wages will he resented by the workers, and the well paid agitators will have plenty of ammunition of their own manufacture to lire at the politicians and employers. A high tariff appears to he the simple way out of the difficulty. If one or two countries only had high tariffs the world could probably get along with some comfort, but unfortunately, practically every country is now fenced in with protective tariffs, and the position is becoming unbearable. At the forthcoming Economic Conference at Genova the tariff policies of the nations is to lie discussed, and this should give us all a hotter insight into the evils of trade restriction. The greatest offender in respect to tariffs is the United States, and the American attitude is so menacing that it was seriously suggested recently by M. Loucheur, exFrench Minister of Commerce, that the whole of Europe, including even Britain, must pull down their tariff harriers against one another and erect a defensive harrier against the United States.

11l England public opinion appears to be veering round to tbo erection of a tariff that will give the British Government a bargaining weapon. In a foreword to their annual review of the meat trade Messrs Wcddol ami Co say. -- After seven years’ experience of over a million unemployed workers living on the dole, ami the comparative hanking depo-.it figures of England and the United State- staring our politicians in the face, showing that, the deposits of the Federal Deserve hanks in the United States had, between 192” and increased by £B9l millions—from £28(50 millions io £3751 millions whereas in England the deposits of tinten London Clearing House Banks during the same four years had decreased by £122 millions—from £1.783 millions to L'lGtil millions, one would think that our political parties would get together in jin attempt to jtlter flus state of affairs, but wo see no reason to think that they have any idea of doing so. hut the reverse.”

It is contended that a vast, improvement in the unemployment in Britain would he obtained il the £900,000,000 jkt annum of foreign manufactured goods imported wore used with ordinary intelligence ns a lover for reciprocity and fair trade, as every other manufacturing country uses its imports to negotiate with foreign nations. The slogan now with :t great many British manufacturers is “Fair trade—reciprocity ”, This seems fair enough from, the British point of view hut it- will take a considerable time to convince the British public that there is anything to he gained by a protective tariff. hut it is obvious that Britain cannot continue her present tree trade policy without material loss to herself. The conference at Geneva nun give a new turn to Larifl policies, hut at tinmoment everyone is trying to restrict and hinder trade. Ihe only thing that appears to have international encouragement is sport.