RETURN TO NORMAL TRADE MUST BE GRADUAL PROCESS.

Rotorua Morning Post, Volume 2, Issue 331, 19 September 1932, Page 7

RETURN TO NORMAL TRADE MUST BE GRADUAL PROCESS.

THE CORNER TURNED. The opinion that there was a strong feeling of confidence all over the Dominion as a result of the Ottawa Conj ference, but that the return to a nor- ' mai condition of trade must he a mati ter of gradual process, was expressed I by Mr. Will Appleton, of Wellington, [ to a Christchurch Press rep'orter. Mr. ! Appleton declared ihat certain New Zealand, made goods were inferior to the English article, and said that one way to assist trade was to rationalise industry? with particular application to manufacturers of wqollen goods. "In my opinion there is every indication that' we have turned the corner," said Mr. Appleton. "There is a stronger feeling of confidence from Auckland to Dunedin, and it is reflected in the prices of all stocks and shares. Industrials particularly have advanced during the last two months. The primary reason is the wonderful success of the British cr iversion loan, which, in some degree, has raised the price of primary produce. While the Ottawa Conferenee has been eminently successful, the return to prosperity must be gradual. I feel that it is having, and will have, a stimulating effect on primary production, and the time is over-ripe for an adjustment of tariffs. In far too many cases Customs duties have been levied not so much for protection, but for revenue purposes, and all this has added to the cost of living. Preference to British Goods. "It was inevitable that greater preference should he given to British goods, but it should be a real preference, not an artificial one. A preference of 10 to 15 per cent. on British goods is of little use if the tariff against British goods is too high," said Mr. Appleton. "I expect a storm of protest from local manufacturers, but any unbiased man must admit that many of our local industries are uneconomic. In many cases a lowering of the tariff against British goods can be effeeted without injuring local industries. "I noticed a discussion in the newspapers on comments hy Dr\ C. E. Beeby, and I agree with him to a very large extent. Recently, for instance, my own wife, who, like most other women, is a firm believer in buying New Zealand products whenever possible, 'endeavoured to purchase a singlet for my small son. She tried several shops, and finally located a garnient which was very much inferior to the English article, which, although there was a heavy tariff against it, could be purchased at half the price. Unless local manufacturers are prepared to give quality and • fit which is in accordance with the dictates of fashion they cannot hope to make progress.

Need for Specialisation. "While some woollen firms specialiso in trying to make goods equal to the world's hest, they will find it impossible to progress unless the woollen industry as a whole is rationalised. The tendency is for the woollen companies to make far too many lines. They should specialise more and limit the range, making the best possible use of the machinery at their command, for the reason that the population is limited. Although I believe that the corner has been turned in regard to New Zealand business conditions, there is a grave danger of being too optimistic. Just as it has been necessary to apply the pruning knife to commercial and industrial concerns and cut out the dead wood, so is it necessary to prune more keenly in regard to Government and local body expenditure. Local Body Expenditure. "In regard to local bodies there is far too much overlapping and needle'ss overhead 'expense. To illustrate my point, I may mention that the Wellington City Council has cut down its controllable expenditure by £96,000 in the last two years. I am glad to observe that Christchurch is trying to do something along similar lines. I ! am satisfied,that the cost of living in New Zealand could be reduced by another 5 per cent. if we got the taxaj tion — national and local — under proper | control. In the final analysis it is the i working man who has to- pay the I piper, and if the average man realised that he could save 4s or 5s a week by cutting out unnecessary luxuries he would then realise the necessity for

economies. "The incidence of the wage tax has brought this question of taxation home to thousands. But unfortunately the average individual does not realise how much of his weekly wage goes to the Government a,nd local bodies in various guises. Take gas — the coal miner has to make allowance for taxation and the charges for cartage, freight, etc., and the gas company must take it all into account. If taxation was reduced all along the line gas could be sold iat 10 to 15 per cent. cheaper. The same thing, of course, applies to practncally al industries," Mr. Appleton added.