WELLINGTON NEW?

Hokitika Guardian, 8 June 1929, Page 3

WELLINGTON NEW?

THE STRUGGLE FOR MARKETS.

(Special Correspondent.)

WELLINGTON, June 4

There are indications that the various industrial nations will presently engage in a fierce struggle for the world markets. It is being recognised in the United States that mass production is in excess of demand, and this is the position in respect to many industries. The magnates in the motor trade in the United States foresee a slackening in the demand for automobiles and are endeavouring to entrench themselves in other countries. In matters of foreign trade Uncle Sam is somewhat selfish. He is ready to sell goods to foreign countries hut he is averse to buying goods from foreign countries, and builds up a high tariff Wall.

A new tariff has now been considered and it is probable that New Zealand butter and frozen meat will he so heavily taxed that it will ho impossible to export to America. It is to he hoped that the Government will treat Uncle Sam to a. dose of his own medicine. The Government should have power at any time to increase tho duty mi certain goods from foreign countries by Way of reprisals. Our prosperity depends on the sale of our primary products such as dairy product and meat. These are to he shut out of the United States. By way of reprisal the duty on motor-car. l *, the principal item imported from America, should he in creased to the same prohibitive point as the duties on butter and wheat.

The Hoover Administration is pledged to protect the farmers through the Customs, hut it will be ill the December session of Congress that anything can happen. Germany is forced by circumstances to make a hold hid for a large export trade, it is stated that it has become a matter of convictioi among German business men and those in responsible positions in the Govern meiit, that there can he no economic recovery in the country except through a vast expansion of export. The home market can only revive after unemployment has disappeared, but the capital necessary for productive relief Avorks cannot he borrowed so long n.s the reparations remain as they are and interest rates are so high. The only other way to provide work for all is by vastly increasing. The mere necessity of paying the reparations tribute implies that the present deficit of £90,000,000 in the German trade balance must be converted into a surplus of at least £100,000,000. It appears that the Leipzig Fair is tTie solution of this national problem. In 1918 Germany’s total export was 10,097.000.000 marks of which “ finished manufactures ” amounted to 0,746,million marks. In 1927 Germany’s total export only amounted to the equivalent of 7,026 million marks, of which •finished manufactures were valued at 5,540 million marks. That is one cause of unemployment in Germany and it is said that there are over two million unemployed in that country. To meet the position it is proposed to engage in intensive' commercial publicity and to spend between thirty and forty million marks annually. At present oiilv 500,000 marks. To prevent waste through bureaucratic methods German industry demands that a large share of the mone” shall pass through the hands of the organisers of the Leipzig Fair. 'Hus body has already created opt of purely private initiative, the embryo of this new world organisation. In ten yeais its network of publicity centres has covered the whole earth. Outside oi Germany there are eleven chief centres in various capital cities and IDO active agencies in other great cities; Its propaganda is printed in every European and some Asiatic languages. Building on the successful beginning made by "the Fair,' it is proposed to established a “Business Man’s News Service” and to he attached to diplomatic and consular services. It ho-provided with 'funds for remitting telegraphic information from all parts of the world, to he entrusted to busi ness men who have spent many yeai s in the respective countries. Markets offering a special attraction to Germany are said to be South America. China, India, Australia, and New Zealand. These plans show that the Leipzig Fair has acquired a new significance and is likely to become a powerful factor in foreign countries and one that exports elsewhere will have to reckon on.