TRADE QUESTION.

Wairarapa Age, 1 April 1920, Page 5

TRADE QUESTION.

New Federal Tariff.

EFFECT ON BRITISH SHIPMENTS,

Oy Electric Telegraph.—Copyright.) (Außtraluin-N.Z. Cable Association.) LONDON, March 29. Australian mercantile circles are anxiously awaiting full details of tho tariff proposals. There is a general feeling of approval at the removal of embargoes and the granting oi preference to. Britain and the Dominions, with limitations where economic conditions arc lower than in Australia. Some merchants consider that the new tariff must cause a reduction of British exports to Australia. Mr. Tredwcn, chairman of tho Australian Merchants' Association, says: "While the tariff gives us a welcome preference over foreigners, Australia evidently does not want to encourage imports. This may raise a difficult position regarding shipping. "At present steamers are going to Australia with only a quarter cargo. Tho increased tariff will mean that still less cargo will be shipped, and fewer steamers will load for Australia. It is, therefore, likely that there will be insufficient tonnage to lift all Australia desires to export, and possibly freights on, produce to Europe will be increased.''

Soft goods traders, in response to inquiries on behalf of tho Australian pross, stato that they do not think the proposed increased tariff on woollens will adversely affect trade, patricularly while the present conditions in the world prevail. The full effect of the tariff will not, be realised until prewar conditions are restored; but it is likely that Australian competition with England for many years to come will be confined to lower and medium cloths. Even then it is doubtful whether Australia will be able to produce sufficient for her own needs. The tariff, together with tho high cost of production and other charges, will be sufficient to exclude English cloths of this quality, except to the extent b>* which Australian production falls short of the demand. Regarding better "fine counts" and solid worsted goods, tho effect of the extra tariff will be inappreciable, except that it will increase the cost to the Australian pur chaser. Machinery, plant, and skilled labour are all wanting in Australia to enable her to compete seriously in the production of highly finished cloths.