The guardian And Evening star, with which is incorporated the West, Coast Times. MONDAY, OCTOBER 13, 1930. ENGLAND’S FISCAL POLICY.

Hokitika Guardian, 13 October 1930, Page 4

T he guardian And Evening star, with which is incorporated the West, Coast Times. MONDAY, OCTOBER 13, 1930. ENGLAND’S FISCAL POLICY.

Although at the moment the British Government as at present composed is not favourable to a preferential tariff for trade within the Empire, being fearful of the effect of taking food more particularly in respect to the trading relations with foreign countries, there is much evidence forthcoming of the desired for a change in England’s fiscal policy. There is a definite movement towards Empire trading on defensive lines, and the Conservative party is likely to make that a definite plank at the next general election at Home, when there will be a real trial of strength on an issue of* Empire importance. Sir Lemon Raws of South Australia, who has just passed through Auckland on his return from England, was greatly Impressed with the trend of affairs at Home. He recognised the world-wide upsetting, of the economic conditions, and there was a definite trend in public opinion towards protection. The movement was taking very solid support. He remarked: “The most striking happening in England is the movement towards protection. It is disguised as Empire free trade, but protection of the Home market is the real objective, Eneland seems to have abandoned hope of regaining her position in foreign trade, but ns she is still of necessity a large importer of foodstuffs and raw materials it is difficult to see bow she will be able to balance her trade if she imposes on her export industries the handicap of higher costs through protection. The advocates in England of Empire free trade have overlooked the- natural desire of the Dominions to establish secondary industries of their own.” This estimate does not coincide with the Government attitude, which, however, it does not follow is in step with national opinion. The Government as a matter of fact, is looking for a middle course, and has suggested bulk buying of Dominion products. It is certain that the Empire delegates at the Imperial Conference now will urge the matter of preference to such a degree that its importance as a first class political issue will be well established. For that reason Sir Lemon Raws, as a recent student on the spot, presents interesting views on the general situation. “Economic conditions abroad,” he said, “are disturbed, and are unsettling political and social conditions. On the authority of Air Arthur Henderson. British Foreign Secretary, the conflict between economic conditions and political aspirations in the East is the most difficult problem of British foreign policy. Revolutions in South America and political unrest in Europe are ascribed largely to economic conditions, which are also challenging the competence of the parliamentary form of representative government in more advanced countries. Tn England the increasing number of youths who graduate from school into the dole and tlie lnrf'e number of men who. through lack of opportunity, are losing the will to work, are serious features of social life. The general decline in commodity prices is raising doubts about the efficacy of gold standard. Tt is estimated that at June 30 last 66 nor cent of tlm world’s gofil was held hv the United States and France. Tn certain quarters this concentration is held responsible for the fall in prices. Ac France is still hungry for gold a further decline is forecasted. America is still suffering from the effeetc. of the collapse of the Stock Exchange boom

twelve months ago. The mania for speculation permeated every section of the community. Another cause of depression is tlie slewing down of instalment buying. The rapid extension of consumer credit was a form of inflation which led to over-production. It has now spent itself, and production Jia.s to he adjusted. The United States is looking to foreign markets and is specially interested in Australia and New Zealand. Speaking generally the world problem seems to be that of the surplus. Almost every country has increased its .output iu industry and for agriculture at a greater rate than its consumption has increased, partly by improvements in technique and partly by artificial standards'. The policy of trying to maintain higher internal prices through tariffs and other means, and of dumping the surplus abroad is leading to retaliation, and endless other computations. “Although there may not he much cause for optimism about the present state of trade.” lie concluded, “the future can, he viewed with greater confidence ill Australia and New Zealand than in Europe. Australia has handicapped herself by past extravagance, but the way to prosperity is clearlv defined. In New Zealand the position should he much easier. because of the lesson of 1922.” Still with any degree of optimism, it ha?; to he admitted these are difficult times abroad. Primary produce is falling and falling, and that means reduced wealth for national credit. There will he a season of tightening conditions, and to escape serious catastrophe there must he most, careful handling of the general situation, Tn other words, this is a time for the fullest economv to he enforced in all forms of Production ®n ns to reduce costs and endeavour to brine nan duct Icm down to, the level of realisation Prices for the commodities as the markets.