AUSTRALIA’S NEED

Hokitika Guardian, 14 April 1930, Page 2

AUSTRALIA’S NEED

TRADE COMM ISSIONER'S VIEWS.

SYDNEY, April 3

In view' of the official and unofficial action to discourage imports into Australia—a policy which must have a serious effect on Great Britain —it was interesting to receive the other'clay the opinion of His Majesty’s Senioi Trade Commissioner (Mr R. W. Dal ton) on the financial depression' in Australia. Mr Dalton was for inapj years in New Zealuand, and he has lx>itti long enough associated with the trade of the Commonwealth and the Dominion to make his view's of tluntmost value to each country. In Australia’s travail there may .be lessons lor New Zealand, and it is even possible that Now Zealand w'ili benefit more from those lessons than Australia will herself. “Before the balance of Australian trade can be struck and maintained.’ said Mr Dalton, “i’t will be neeossan to find a far bigger volume of exportable produce than has been thought of Ibefore, or values of staple lines must again rise to levels much higher than ever those ruling before the present break. In other words exports, must be increased to a point at least about £40,000,000 per annum value in excess of imports which is about the equivalent of one complete additional wool clip.”

M Dalton said that Australia’s chief trouble was the necessity for deflation following on a period of buoyancy. That was the main cause of existing conditions, but it had been aggravated by a coincident bad season and a decline in prices. All these acting together had produced financial stringency not only in Australia, but also abroad, and chiefly in London, wherq settlements of international dealings! were ultimately made. It was obvious that if money for Australian account did not exist in London purchasing could not take place, nor. could facility be given for remission there for funds that might have accrued here for goods already sold. The greater

Iho depletion of London funds, the greater the need for the conservation of those funds for Government needs, and the less was the possibility of the utilisation of the funds for trade purposes.

It was clear therefore that flu? import trade had to- decline, and If was useless for lho British manufacturer to cavil at the situation. However serious the results might ho for British trade, a true understanding; ol the position must force British interests to a realisation that tin; cause of the curtailment was economic conditions which were unavoidable, could not be rapidly changed, and must- therefore be accepted. He could see no prospect of a recovery in the import trade for a long time. A ro-esta, liisliment of the economic position would be for the good of Great Britain as well as for Australia. They had to remember that, there were some things more important. than pound, shillings and pence, and they should endeavour to understand each other’s troubles, and work hand in hand for the common good.