WELLINGTON NEWS

Hokitika Guardian, 11 July 1930, Page 2

WELLINGTON NEWS

EMPIRE TRADE AND SAFE-

GUARDING

(Special Correspondent.)

WELLINGTON, July 10.

Tho McKenna duties and safeguarding put into operation by the Conservative Government under Mr Stanley Baldwin in Britain was . the first apparent breakaway from the traditional policy of free trade, since then safeguarding which is another name for protection has grown and is now a cardinal. plank in the policy of the Conservatives. (Safeguarding and trade within the Empire go together and they now have powerful advocates, so powerful that they must in the long run succeed. The present Socialist • Government came into' power because it promised to eradicate unemployment and incidentally to abolish safeguarding. The Government has failed entirely to abolish unemployment or even modify it, but safeguarding has been allowed to lapse in certain cases. The insecure position of the British Government is shown by correspondence, that has passed, between the Sheffield Chamber of Commerce and tlie Chancellor of the Exchequer.

. The Chamber of Commerce passed a resolution urging the necessity of immediately extending safeguarding duties to the iron and steel indusr tries. In the course of his reply the Chancellor (Mr Snowden) stated: “The Chancellor of the Exchequer must express his surprise that you. have put before the Government such a. request when you must be perfectly aware that the Labour Party was returned at the last election pledged to oppose the extension of safeguarding duties. and to repeal the existing duties at the first practical opportunity.”

A reply was sent by the Chamber in which it was stated that there were a number of , reasons which prompted the Council to submit to the ‘Chancellor of the Exchequer the resolution in question. “In the first place the ! Labour Party consider themselves committed to promises made twelve months ago, and it may fairly be claimed that since that time !t,he ■Govei•umeut’s alternative proposals to safeguarding as a remedy for unemployment have failed to achieve their object, as instanced by the large increase which has taken place in the unemployment figures. .The latest addition ta the army of advocates of Imperial trade are British bankers, and it is obvious that they realise that something must be done to revive British industry. It is an important gesture on the part of bankers and brings Imperial trade well within the zone of practical politics. “The support accorded by .bankers is the most interesting for they as a general rule are free traders. It is probable that many people who advocate trade within the Empire and safeguarding are really free traders, but they realise the futility of one; country pursuing the policy of free trade while all around her arc protectionists.: The world is engaged in'ta trade war increase incite tariff is a hit at Britain','T and' hnder the circumstances it is right and reasonably for Britain to seek allies and she is endeavouring to make close trade allies of the Dominions. It is for the Dominions'.to - .respond, . and the war ions' Gqvefiimeihts. will.. have an opportunity at the Imperial Conference to further the scheme. The International Chamber of Commerce recently.; issueda publication entitled “Business Conditions ,at the Present Time” in which it is stated that the tariff policies of other countries render it increasingly, difficult for Britain to continue to offer a relatively free and open- market to its competitors. • (V

The urgent necessity for restoring the basic industries of th e country to » condition -of soundness "and prosperity ' and ; for ; the mobilisation of new capita] : in to achieve the economies of real Reorganisation has recently'." drawn , considerable , attention to -/the question of the relations between banking ; ,afid industry. , The banking • community has made' it quite clear '■ that •it fully realises the important ■ part which must pay in the reorganisation of industry. It is declared that “the present situation -may be summarised hy the statement that the present depression cannot be regarded as representing the!; descending curve of normal economic life, but as having deeper'./hud: less normal causes, At the same'.•time recovery depends on the same factors as recovery from a norma! depression, namely, reduction of costs and availihiL'ty 'of credit, oncfct costs are reduced. It is' the. reduatiipji; of costs that is essential, and r-jtliat applies to New Zealand as to Britain.