WELLINGTON NEWS

Hokitika Guardian, 4 July 1930, Page 3

WELLINGTON NEWS

ECONOMIC UNITY.. '(Special Correspondents WELLINGTON, July 2. ■ The report issued by the General Council of the Trade Union Conference is illuminating and brings nearer the goal of economic union of the Empire. Free Trade is no doubt’ tinideal, for it is imbued in man to buy in the cheapest market and sell in the dearest, but the ideal is marred by practically every country endeavouring to he self contained. Climatic conditions make this theory an impossibility, still we have to accept conditions as they are, and we must nnkriow ledge that free trade is almost impossible ’now. Theoretically Britain is a

free trade country, hut how can one country pursue a policy of free trade when surrounded by protectionist- countries. To how the knee to a fetish is foolish and in the case of Britain it is forcing-her out of her export markets.

The traditional free trade policy of Britain cannot longer be maintained and the Council favours the economic unity of the Empire and points out ’that there are factors favouring this, the factors being the undoubted ties of sentiment, and settlement still counts in the economic sphere; that supplies of raw material and manufactured goods can he balanced, but above all tliCre exists already to some extent a tariff bond within the Commonwealth in tin? form of commercial discrimin-

ations or preference. Britain mu either join the United States of Europ<

as proposed by M. Ihdand, or consolidate the British Empire a.s an economic unit. Many sound hiisuiesses in Britain have urgued notwithstanding that they are declared free traders because they recognise that a policy of free trade nui'isiied by any one country must result in that country being mo e or less isolated iii so far as export trade is concerned. The Government of this Dominion has a splendid opportunity Mist now to further the cause of Empire economic unity. The Brimc Minister announced long ago that' it would ho necessary hi provide for an an I io'pnted dolicieucv of approximately C1.,00.1,000 and this must involve increases in Customs datin';, ft would he suicidal to in -

err-nse the taxes, that would raise tin cost of living, and therefore luxurie

bee oiiic> tlie target Cor increased duties. One of the modern day luxuries is the motor car, and this country lias been thoroughly exploited by motor manufacturers of the United States.

The United States has just increased its tariff, and the new duties make it impossible, or very nearly so, to sell wool , dairy produce or frozen meat to that country. It is our bounden duty to hit hack, and as motor cars are a luxury, by raising the duty on foreignmade cars we should be hitting back mi the United States and at the same time helping British manufacturers The same course could lie pursued in w -jie..i 0 f th(> 1 "Talkies”, also the sil--01 | ui, lures. \ftor all we must hear in mind that Britain h at nil timer.

ready to take our wool, dairy produc' and other commodities, and the mort

we help her the more help will she extend to us. Hostile tariffs have contributed not a little to the world-wide unemployment, and the dullness ot trade is a consequence.

This trade dullness is very obstinate and it seems that it will not yield even to cheap money. Indeed, cheap money Is a result of falling commodity prices and dull trade which generates lack of confidence. The demand for credit has declined and the supply at the moment' is in excess of the demand.

When one sets out to examine the causes of the present abnormal economic conditions, with its unemployment, falling commodity prices, shortage ol monel ary gold, hostile tariffs rationalisation, cartels, .pools and general Irgi slative interference in commercial and business affajrs bewilderment is the

result, for it seems uhpSssflile to say what is the cause and wliat lk the effect. The chief utility of the report of the Traders’ Union Congress is that it brings the problem of Empire economic unity within the rangeof practical

polities. " ‘ v • Now the subject is bound to be discussed in-views from, all angles; and as many powerful business men and states men are ardent supportens of trade within the Empire, we arc getting nearer to the termination of our eediiomic troubles. If Britain abandons free trade and becomes a protectionist country, hub*not. so protectionist as the ri.fitoil States, a position of stalemate would follow, and then by negotiationand agreement t li-v tariff harriers weidd he lowered and trade and commerce allowed to pursue their normal course. ' * prrv W