Boom or Chaos ?

Sun (Auckland), Volume IV, Issue 940, 5 April 1930, Page 9

Boom or Chaos ?

AUSTRALIA’S TARIFF POLICY Local Makers Pleased REPRISALS THREATENED IN ENGLAND CHAOS on the one hand and a prosperity boom on the other are foretold by opposing interests as a result ot' the new tariff policy of the Australian Federal Government. Local manufacturers are pleased, but shipping interests predict a gloomy future, while an English journal threatens trade reprisals at Home.

United P.A.—By Telegraph—Copyright Reed. 10.30 a.m. SYDNEY, Today. With the announcement of the tariff proposals, local manufacturers claim that Australia is on the threshold of J an era of prosperity similar to the boom that followed when a like action was adopted in the United States about 60 years ago.. Opponents of the tariff point out many anomalies, and predict greater unemployment and trade depression. Some of the large local manufacturers are of the opinion that the new’ tariff will result in lower prices for all the goods protected. One firm of implement makers has already announced a 5 per cent, reduction in the price of farming and agricultural machinery. Many importers, however, who placed their orders overseas months ago, for winter delivery, have been placed in a most embarrassing position. The Commonwealth Government yesterday issued a proclamation totally prohibiting the import of furs, skins, certain articles of wearing apparel, also various kinds of agricultural machinery, radio sets, petrol pumps, and dried fruits. The rationed articles include ale, porter, wines, and cigarettes. CO-OPERATION ESSENTIAL Commenting on the tariff changes, the Sydney “Morning Herald” says: “Mr. Scullin’s grave and commprehensive explanation of the Government’s action has brought the House together as nothing has been done since the outbreak of the war in 1914. The sincere’hope of all who have been watching the' situation with anxiety must be that development will spur the whole country to realise at last the necessity for united effort. “Australia is thrown definitely upon her own resources to maintain solvency, and provide employment through industrial and not Government enterprise, and to temper the severity of this blow upon her working people every worker must produce more. “But until Labour’s own leaders tell their followers this in unambiguous terms, we are convinced they will not accept the exhortation. Only in this way can increased taxation be met, and much suffering averted. “Every employer in the land will throw in his lot with the employees in making the necessary sacrifices to secure greater exports. If he can get whole-hearted cooperation in return with that closer understanding, Australia will emerge from this stronger, fitter and richer than she has ever been.” SHIPPING ALARMED Shipping men regard the new tariff ! tv'tli dismay, as there is bound to be : r. rious diminution in cargo from United Kingdom, and ballast will 1 e to be carried. It is definitely

stated that the Orient and Peninsular j companies will maintain the existing j fortnightly services, owing to their ; being bound by mail contracts. It is highly probable that a number | of tramp steamers will no longer i come to Australia, owing to lack of I cargo. The Stock Exchange, which is j usually a sensitive barometer to any | change in the commercial or financial outlook, gave no appreciable reaction j today to the new restrictive tariff i schedule. The view is held that the Government will have to resort to direct tax- I ation to compensate for the loss of ; revenue as the result of the curtailment of imports. THREAT FROM ENGLAND BLOW TO EMPIRE TRADE BUSINESS CIRCLES ALARMED LONDON, Friday. The “Daily Chronicle” says the new Australian tariff must inflict a heavy blow on British trade, just when it needs help. While Australia’s new policy is maintained it will be a waste of breath to talk to the Commonwealth about Empire free trade. The “Daily News” says: ‘lt takes two to make a bargain. If Australia will not buy, we ma*y, with the best will in the world, find ourselves in a position in which we simply will be unable to buy.” The “Daily Telegraph” describes the new tariff as probably the most dramatic and most sudden stroke in modern economic history. Obviously the result must for a time gravely restrict Empire trade by reducing Australia’s imports. The situation need not have arisen in its present aggravated form if there had been in the past close economic consultation and co-operation between Britain and the Commonwealth, and Britain would not have been faced, as she is now, with the temporary loss of a great slice of her Australian trade. “The “Telegraph” adds that the moral in the unpleasant news from Canberra is that there should be a getting together, so as to turn this misfortune to the best possible use. MORE GOLD FOR HOME Reed 10.30 a.m. SYDNEY, Today. The Commonwealth Bank has arranged for further shipments of £8,000,000 in gold overseas. This makes a total of £20,000,000 exported from Australia since July 1929. The general object was to relieve the exchange, but most of it is being used for interest obligations.