HER HOUSE IN ORDER

Sun (Auckland), Volume IV, Issue 941, 7 April 1930, Page 9

HER HOUSE IN ORDER

AUSTRALIA’S TARIFF RESENTED ABROAD FRENCH REPRISALS Lnitcd r.J..—By Telegraph—Copyright SYDNEY, Sunday. The Acting Minister of Trade and Customs, Mr. F. M. Forde, lias issued a statement' declaring that the new tariff measure has beeu introduced merely to meet national emergency, hot as part of the Government's protective policy. Primarily it is intended to restrict imports. "Australia is a debtor nation." says Mr. Forde. "Her house must be put in order. One thing upon which the Government is determined is that the Commonwealth shall honour her obligations. We took this action only after serious consideration and after advice sought from banks and others in a position to say which was the best way to rectify Australia's adverse trade balance. This amounts to £ 90,000,000 for the past six years.” When the Commonwealth’s conversion loan closes tomorrow it is expected that the Government will have provided for almost two-thirds of the £ 60,000,000 outstanding when the campaign was launched. The response lias been so liberal that the task of the Federal Treasurer has been considerably lightened and the conversion of the balance should not be unduly arduous.

Next year’s Commonwealth and State conversions should he comparatively light and should not have to be arranged until near the end of 1931. FRANCE MAY RETALIATE: LONDON, Sunday. Owing to the increase in the tariff duties of Australia it is authoritatively stated that France contemplates taking retaliatory action against. Australian goods. Officials at Australia House have not yet been officially informed of this, but they have been privately advised. The new Australian tariff will come as a blow to the potteries. The director of one of the largest Arms in North Staffordshire, which sends travellers to Australia, and has built up a substantial business there, says: “It will cause a severe loss.” The head of a firm of makers of sanitary ware says: “A large proportion of our trade is with the Commonwealth.” The “Times” commends the Scullin Government for its courage in tackling the crisis, and adds: “British trade will be adversely affected, but the setback must be accepted philosophically.” The “Financial News” asks: “Will not the rise in internal prices aggravate Australia’s present difficulties? The new laws should be given a definite time limit.”

AMERICA DIVIDED WASHINGTON, Saturday. The variety of official and unofficial comment on the Australian tariff schedule indicates the differences of opinion existing as to the seriousness of its effect upon American trade. In all directions there is much interest in what some observers declare to be the highest tariff harrier in the world. The Associated Press reports that officials of the Department of Commerce predict that America’s exports to Australia will decline about 50 per cent., both as a result of the new tariff and of the business depression existing in the Commonwealth. The value of exports to Australia last year, £30,000,000, represented 3 per cent, of America’s export trade. The prohibitive duty on maiiufactured tobacco is expected to react favourably on America’s export of leaf tobacco to the Commonwealth, which in 1929 totalled £1,413,000. Officials are confident, however, that j as soon as the stocks of American | goods on hand are reduced and Ausi tralia’s business conditions improve i the emergency tariff will he lifted. | Mr. W. C. Hawley, Republican memI ber of the House of Representatives i for Oregon, who played an important ! part in the revision of the American ; tariff now before a conference of ConI gress, stated today that the United I States is not in a position to make a j protest against the new Australian [ tariff unless it can show that there is j direct discrimination against American ! trade.