The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, DECEMBER 11, 1933 THE TRADE WAR.

Hokitika Guardian, 11 December 1933, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, DECEMBER 11, 1933 THE TRADE WAR.

The conflict in trading rivalries is being manifested in most countries. Japan’s excursions to Europe, South Africa and South America, following the onslaught on India, is the most notable, and for Britain the most serious. The Japanese are alert as to trading methods, and have developed the manufacturing branch to a very high state. There is abundance of cheap labour at call, and Japan can produce or buy its raw material evidently to the best advantage. Japan’s trading is not all to the debit, for the country is a useful credit buyer of wool, and is one of Australia’s best customers, while Japanese requirements also help the New Zealand wool growers. But in the manufacture and production of cheap fancy goods, cottons, and houseware, Japan has proved a most formidable rival. Her trade is of such dimensions now that from an economic point of view it would ba a very ill-advised step to indulge in belligrent acts. Yet Japan is considered one of the danger points of the world, due in the main no doubt to her warlike preparations, Japan must have had a costly experience in China and Manchuria of late in sanguinary and difficult fighting, and the national finances are heavily strained. Little wonder therefore that the country js turning more to trade as the soundest way toward rehabilitation. Russia is busy also endeavouring to make friends for trading purposes, and an important deal lias just lmen brought off with the United States, which is verv ripe at present for trade outlets, and is doAvn to bargaining on the "xchange prin—lthe la teat being ia accept whisky supplies in return for exports of .bacon! The trade rivalries in Euron" are also v"ry notable, and th, e . general situation is made move difficult—if r n+ - •■’’esoorate—by the instability of currencies. Germany is. an uncertain ouaotjty with a depreciated moncta-7 system, and tlm nation Piay yet become the buyer and seller r<rto«H of the individual. The Home market is in a difficult position

for Dominion trade, the .slump in ror dairy produce being a bad setback for this country which depends so much on the pri<_e level of farm produce. The lendings departments of the New Zealand Government do not report cheerfully about the. outlook, one Board says: “So far from the postion showing any improvement, the adverse conditions have been accentuated, especially in the case of the dairy-farmer ow.jng to the further marked decline in the prices received for butter and cheese on the English market. Most dairy farmers based their expenditure on an estimated return of at least one shilling per pound for butterfet, whereas the return was between nine pence and ten pence. “It is unfortunate that now the return is below the nine pence, and at present a restricted market is likely to be established in ißritdin. This loss and vaPtailment of trade is bad for the dairy-farmer and the Dominion at large, for the dependence on the Home market is very marked. Britain has the right to consider first her own farmers, and there is a definite urge in the country, as also in the Commons, to adopt that policy. New Zealand cannot indulge in a trade war, and must accept the conditions* of trading which the buying country enforces. At the moment the outlook is difficult, but the overtures being made may help to lift the veil and reveal

exactly what is behind the scene in respect to the depreciation of dairy produce prices from, the on the Home market.