The Guardian And Evening Star, with which is in' corporated the West Coast Times. TUESDAY, November. 23, 1933 RECIPROCITY

Hokitika Guardian, 28 November 1933, Page 4

The Guardian And Evening Star, with which is in' corporated the West Coast Times. TUESDAY, November. 23, 1933 RECIPROCITY

An English paper reviewing lately the uaianoa of t-i'aae, as affecting the Home country, refers to the pauses of reciprocity under which Britain can be aeiped by those abroad which find the Home market serviceable. Healing particularly with trade benefits, it is pointed out that tlie vital consideration lor Britain is to export its manuiacturos in order to maintain its capacity to import the necessary food and raw materials, and to keep its population employed, so that it can alford to allow foreign countries to send competitive manufactured goods to the exclusion of local manufactures, and to use the credit thus created to purchase new materials from some foreign country. Admittedly the transaction may have enabled the latter country to meet liabilities in Great Britain, but even so it would have been more profitable for Great Britain to have purchased those raw imperials and 'tnu's jhave provided her debtor with the same means to meet liabilities in London, while their manufacture here into the required finished articles' would have provided employment. Under present conditions the provision of work is far more important than any slight immediate advantage represented by the difference in price between British and ■foreign competitive manufactures. Another instance is afforded by a country which exports raw materials and food to Great Britain, and instead of using the credit thus created to meet its indebtedness here or to purchase British manufactures utilises it to purchase manufactures from another country, ft is desirable’ that the credits created by the sale of raw materials and food here should be used to pay for British manufactures, and to r.leet liabilities here and not be transferred to industrial competitors who, as a rule, do not buy the finished products of Great Britain. These comments show the niceties of trading, and the interlocking effect to produce the credit or funds to carry on. This applies alike to the Empire and internationally. Much the same thing applies to loans, when raised at Home for overseas. Enhanced credit is created at the buying point which helps trade, and produces the reciprocal effect. If the position is brought home to our own case, it has to be recognised that Britain is our main market for prothe back-bone of the country’s production. The arrangement, however, is largely one-sided because New Zeaand does not buy and import adequately from Britain in return. The fact that the trading balance is so largely in favour of New Zealand is the basic cause of the cry at Home for a quota restriction. This country along with other primary producing countries, Hoods the market with commodities which affect the local production, and for the protection of the farmers at Home it has become necessary to restrict produce imports. But if New Zealand were a better customer to Britain and took more manufactured goods from that quarter instead of from foreign countries which restrict through tariffs already the entry of New Zealand produce, the increased trade would give more work at Home and enable the workers to be better customers for the retail businesses. Local trade stimulated thereby would help the general situation, and following such a policy New Zealand would benefit both directly and indirectly from the greater patronage. There are reasons apart from trading why New Zealand should patronise to the fullest extent, the country which affords so much protection for our seaborne traffic, and for the domestic ties which should ensure j the greatest loyalty to the British market. |