The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNEDAY, DECEMBER 16, 1931. BRITAIN’S POSITION.

Hokitika Guardian, 16 December 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNEDAY, DECEMBER 16, 1931. BRITAIN’S POSITION.

The fiscal policy of Great Britain whereby free trade has been abandoned (at least ’temporarily) for protect tion, lias not only surprised the foreigners-, but ha« aroused a certain amount 'or resentment abroad. The truth, of course, is that Britain has so effectually “spoiled” her foreign competitors by giving them the free run of her market that they have come to look upon the privilege as an absolute right, and they are accordingly indignant at its withdrawal. This is very unreasonable, and no doubt when the various parties to the controversy have cooled down they will he prepared to compromise on some rational basis, Mr Runciman,

who, as President of the Board of Trade, finds himself in the anomalous position of an ardent Cobdenite administering a Protectionist policy, explains a northern writer, charges France with trying to revenge herself for the loss of her British market by discriminating unfairly against

British" goods. But the French Minister of Commerce retorts that France's new duties apply to all countries with depreciated currencies, and that tne 15 per cent, surtax is imposed definitely upon countries that are now “off the gold standard.” There are the makings of a very pretty quarrel here. But all tariff difficulties are susceptible of adjustment, and experience Mas shown that the only way to settle them is by mutual concession and compromise. As the leading London newspapers have pointed out, the chief Protectionist countries which, twelve months ago, could not bo induced to consider Britain’s proposals for a reduction of tariffs, or even, a tariff truce, are now anxious ■to negotiate with her; and this certainly is an encouraging sign, of the times. But the Protectionists, carried away by their success, may try to go too fast and too far. For instance, the demand for an immediate duty on iron and steel imports may cause serious trouble abroad, and may split the National Government as well. Since Britain gave up the Gold Standard the pound sterling has naturally become depreciated to the currencies of those countries' like America and France which are still tliwretlcally or practically on a gold basis. But the fall in sterling which was thus inevitable has been greatly ’intensified during the past two or three weeks, first by the great rush of imports poured into Britain to evade the threatened duties, and then by speculative dealing on the Continent. The upshot of it all is that the pound sterling is now valued at a little over fourteen shillings measured in gold, and it has been fluctuating violently from day to day. Of course, the collapse of the British pound has supplied a highly sensational flavour to the financial crisis through which the world 'is passing, and a great many people not only in America a,ncl on the Continent, but in Britain as well, seem to be quite needlessly alarmed about it. Mr Neville Chamberlain, the new Chancellor of the Exchequer, has ascribed the decline in sterling chiefly to factors operating abroad which Britain cannot control, and Mr Baldwin has assured the general public that it gives no real ground for apprehension or disquietude. Those who are inclined to discount the assurances of the politicians, who in such a case are certainly interested parties, may derive some consolation from the comments of the “Times,” which attributes this remarkable collapse of sterling to “temporary and artificial” circumstances, and confirms the view expressed by the statesmen that there is no real cause for alarm. In any case, the Government does not expect to see the pound stabilised till the trade accounts are balanced and Reparations are settled, and that, may be a long time yet. During last weefc two distinct and separate international Committees, sitting at Berlin _ and Basle respectively, have been dscues- j ing the question of reparation payments ■in all its various aspects, and their conclusions are likely to have ■ a momentous effect upon the financial prospects of Europe in general and Germany in particular. It is impossible to anticipate the decisions of these conferences, hut it is a significant, fact that the Paris correspondent of the | “Times” a few weeks ago committed j him«elf to /the assertion that “the British Government favours the complete abolition of the Young Plan annuities.” But, of course, even Brit- j ain would regard such a step .-s j practicable only if all war debts were wiped out at the same time, and Americans gave the rest of the world a clean slate to start figuring on. This, unfortunately, is not a very probable contingency just now, in view of j President. Hoovei’s declaration, and ' the Nazis, in Germany have not im- j proved the situation by cheesing this . juncture to proclaim that if a National Socialist Government is put in power it will make short work of “the monstrous extortion passing under the name of reparations.”

There should bo a full appreciation of the difficulties of the Government niitlr regard to unemployment, and the appeal to the public to assist at thus juncture should not be in vain. The local bodies and the Soldiers’ Association are helping in a very practical way, and the co-operation of the public is not too much to expect just now. This is the season of the year when there is a natural disposition on the part of the people to he helpful, and with that spirit, abroad much might be done of a helpful character. It is true this measure of assistance cannot be lasting, but it will at least tide over a season of the year when it will be possible to bring some cheer to those who would otherwise go short, and it is not pleasant to contemplate that, shortage. On the larger question of permanent relief, the country is still far from a solution of the problem. There is not much comfort in knowing that New Zealand may not be as badly off as some countries, or that everything possible is being done here. The overcoming of the besetting trouble is what is desired, and it is hard to shape a policy to that end, when at the moment development work is practically at a standstill. The Government is seeking to place more people on the land, but the process is slow in relation to the many without occupations; and it is difficult to hasten this matter, for settlements can be set up only after long drawn out preparation, So far as Westland { is concerned it would he pleasing to see goldmitving and sawnulling take a favourable turn, for both offer avenues for employment on a considerable scale. The former is a matter of careful and systematic prospecting, for which time and money are required. ■As regards the latter, the Federal 1 poll in Australia next Saturday may assist to revive the oversea market for our timber trade, and in that | event, by the adjustment of the exchange rate on a. fair basis to assist i the industry, a revival is possible. , This is an wlm-li the Unemployment Board could take up, and the results would be promising in the way of creating more useful employmentleading up to greater production. It is along those lines where the best results are offering.