The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JUNE 24, 1930. PROTECTION RAMPANT

Hokitika Guardian, 24 June 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JUNE 24, 1930. PROTECTION RAMPANT

Ihkre are many signs that protection is becoming rampant throughout many countries. Mr David Jones, the New Zealand Member of Parliament, has passed stringent criticism on the new tariff in the United States which he describes as an embargo on imports rather than a means to raise revenue. He -predicts retaliation. Mr Fenton, the Minister of Customs for Australia, who has just returned from the Naval Conference,’ stated that he is more convinced than ever that protection is the right policy for the Commonwealth, and lie hopes as a result of the building of a high tariff wall, manufacturers will oome to Australia to produce their goods, instead of sending in the manufactured articles, i nose examples, it would appear, are likely to he, in fact arc, being imitated by other countries. The issue may be considered part of the economic scheme to right the internal difficulties of those countries which have fallen to leeway as a result of the aftermath of the war. Protecton as such was j regarded mainly for the protective in- ! terests of local products, but in its later day application it- is going to j be of far wider affect, and it is not j unlikely will set a now standard in world finance. To a great extent that will be dislocating, and will i create new features with fresh difficulties for each country to work out for its own salvation. The prospects j are such that the subject deserves the 1 most serious concern, for the national effect may, and probably will, be farreaching So far as the American situation is concerned, and in regard to ,

which there was considerable doubt if President Hoover would sign the Tariff Bill and permit it to become law, an American economist has indicated that under the measure the United States has a tariff situation that is the liigh- ( e.-’t /that even that high protective country has ever known, and retalia- • tory action is very certain. Australia likewise has put on a high tariff, and l Mr heiilon lias returned satisfied that the policy is the right one. But the outlook; may change when other countries go and do likewise, as appears to be the first si,ep for self-preserva-tion. Some of the new countries created in Europe by the Treaty of Versailles are starting out to encourage home industries, and this means a tariff wall. These walls are going up and the tendency, as we have seen in the cases, of Australia and. America, is to keep on raising the protective ciuties. IT the movement .becomes more general as appears not improbable, th e ,re will be a multiplication of the facilities of home production, and consequently there will be a narrowing market for exports. This presages a restrictive force upon profitable world-trade and that means a recurrence of financial troubles from fresh causes later. As- regards New Zealand, it has been doing its best ill a moderate way to assist secondary industries and estaifclih them on a firm busisi, both for development purposes and also to absorb labour, More protection to that end would assist the industries no doubt, but mny in.reuse ! the cost of production. The' Domin- | ion, however, is not likely to rely on its secondary industries for its material sustenance tor a very long time. Our remoteness adds to the cost of transport and makes for a fresh difficulty. New Zealand must have a i wider market lor its pastoral produce, and to that extent must be prepared to bargain for favoured treatment with those countries which will consume the colonial produce. It does not appear that this country can afford to follow an intensive protectionist policy— at all events till the position is more clarified. Bather must New Zealand seek out reciprocal alliances for the benefit of trade and marketing. Mr Fenton has no hope of an all-Empire policy for Australia, though this country differently placed, could look for a great deal of help from that source. The problem as a -whole will not be solved readily, and in the meantime the world situation must he watched closely.