BRITAIN’S IMPORTS

Wairarapa Times-Age, 16 July 1938, Page 7

BRITAIN’S IMPORTS

SUPPLIES FROM NEW ZEALAND HOME FARMERS’ RESENTMENT. DOMINION IN LIMELIGHT. New Zealand is getting its share of the limelight in Great Britain, even if it is not of the same refulgence as that which shines upon Test players and record-breaking air pilots. But she has stood up well under the searching scrutiny of the day-to-day criticism, which has been her lot lately. The public verdict on the whole is favourable to the Dominion. Firstly, there has been the criticism of the marketing of New Zealand primary products. This comes in the main from the National Farmers’ Union which, notwithstanding the efforts that were concurrently being made at Sydney to effect an Empire rapprochement between Home and Dominion producers, could not refrain from further digs at New Zealand on the score of the dairy and meat exports. With drought threatening the sufficiency of the supply of milk for liquid consumption, it is difficult to follow the reasoning of the National Farmers’ Union, which seizes upon the high prices of butter on the Continent, including self-contained Nazi Germany, as evidence of the fact that the dumping of subsidised Empire imports are depressing the price of manufactured milk products—and, inferentially through them, of liquid milk itself — at home. The National Farmers’ Union shows a glorious disregard of current economic tendencies, such as the upward trend of butter prices; next week if New Zealand butter touches Is 6d retail it will proceed to map out a convincing case (to its own members) to show that the New Zealand farmer with his purely manufacturing outlet is much better off than his English confrere who has a monopoly of the liquid milk market. LAMB AND MUTTON PRICES. So we come' to lamb, and mutton prices which have shaken the home farmer very badly. One is bound to sympathise with him, for when after a season of luxury prices which led many. farmers to stock far more lambs than they normally carry and prices fell to an extent that leaves the finished product of less value than the store, there would appear to be ground for resentment at an apparent increase in iihported supplies. But it is almost entirely sheer lack of organisation, co-operation and marketing “nous” which has placed the Home farmer in his present predicament. It should have been self-evident that the prices paid for English lamb and mutton last year were the prices open to a strictly limited luxury trade. Once that luxury market was oversupplied it was bound to crash.

The National Farmers’ Union and other farmer organisations blamed New Zealand for an eight per cent rise in imports. Facts, as revealed by the Minister of Agriculture (answering a Parliamentary question), were that there had been a fall, not a rise, in lamb, and the only increase had been in ewe mutton which, because of the big price gulf, does not compete with the Home product in any way, and merely caters for a special market. Moreover, there is little doubt that the Home producers, as well as rapidly building up livestock, marketed in somewhat of a panic when the drought came. Now they must think up another to convince the Minister of Agriculture, but it’s a safe bet that the Minister for Co-ordination of Supplies would have something to say about any proposal for a drastic re-, duction in quota.

ROSSENDALE AGAIN. Another big arclight shone on the devoted head of the High Commissioner over the Rossendale boycott affair. Rossendale (in Lancashire) boot, shoe and slipper manufacturers, threatened a boycott of New Zealand products over the new shoe tariff, and sought the co-operation of the local shoe operatives’ union, which forthwith undertook to take a ballot of its members. But the hand of the parent National Union descended heavily upon the posterior of the recalcitrant branch, which was soundly spanked for threatening a boycott of the goods of a “country which has the best labour conditions in the world.” And, finally, when the High Commissioner answered a rather angry letter from Rossendale by promptly offering to go North to talk the whole matter out with the Union as an alternative to proceeding with the somewhat theatrical procedure proposed by the manufacturers, the Union .expressed its great pleasure and gratification.

RUMOURED TARIFF INCREASES. All things considered, the critics of New Zealand have rendered the Dominion a service in recent weeks. There was a trade correspondent of the “Manchester Guardian" who burst into print with a categorical story of New Zealand’s intention to increase tariffs on Lancashire textiles. The “Manchester Guardian” is a great influence throughout the North, and such a report, if unchallenged, was bound to have serious repercussions. Hence, the prompt denial by the Prime Ministex- cabled from New Zealand, and widely published on this side, was extremely timely. The unfairness of the publication of unauthenticated reports of the intentions of New Zealand so moved to indignation that sturdy Conservative and staunch friend of New Zealand, Sir John Haslam, M.P. for Bolton, that he declared how distressing it was that New Zealand, “perhaps the most loyal of our Dominions,” had been subjected to unfair criticism and suspicion.

After quoting from Mr Savage’s denial and the facts relating to British preference in the New Zealand, tariff from the Board of Trade Journal, he concluded:—“May I suggest that, in the interests of the preservation of good Imperial relations no less than in fairness to New Zealand, the British public should not allow itself to be influenced by unauthorised statements affecting New Zealand’s reciprocal trading relations with the United Kingdom.” , A “WHISPERING CAMPAIGN.” And, finally, we come to the financial “whispering campaign” recently denounced by the Prime Minister. Its origin is “wrapt in mystery” except for the fact that its first printed manifestation occurred, curiously enough, in that stalwart pillar of Empire—and of Empire Free Trade—the “Evening Standard,” one of the Beaverbrook group, where the city editor wrote in lugubrious terms, with a soupcon of pained surprise, of the small but steady fall in New Zealand gilt-edg-ed and followed it up with renewed doses from the same prescription. Next the “Daily Mail” city page had a go at the subject and, “curioser and curioser,” we found various provincial papers of varying political complexions rowing in the same boat —a truly incongruous crew.

The persistence of the onslaught on New Zealand’s financial position, notwithstanding the strength of her budgets and her improved trading position, suggests that in certain quarters the wish is father to the thought. The “Daily Mail” reluctantly admitted that New Zealand’s present trade position was favourable, but declared that this result “was built up under much more favourable conditions than exist now.” To support this statement, the price of wool (which shows a fall on last year’s exceptionally high prices) was quoted.

WOOL RETURNS DECREASE. The “Daily Mail,” however, overlooked the fact that wool is but one of the Dominion’s export commodities. The decrease in the wool cheque is more than compensated by increased prices for other exports. New Zealand dairy produce and meat are bringing better prices than at the corresponding period last year, and there is no reason to believe that this happy state of affairs is likely to end suddenly. Far from New Zealand’s export revenue declining, the opposite is the case, as is shown by current Board of Trade returns. For the four months ended April 30, the Dominion’s exports of dairy produce, meat, wool, fruit, hides, tallow, etc., to the United Kingdom totalled £18,115,000, compared with £17,649,000 for the corresponding period last year and £16,283,000 the year previously.

It might also be pointed out with advantage that the falling off in New Zealand trade so eagerly predicted in some quarters does not seem to be anticipated by the British shipping companies, which have recently or-, dered from British shipyards a total of some 100,000 tons of shipping for service in the trade to the Southern Dominions. This includes the largest vessel ever built for this trade.

CHAMPIONS OF NEW ZEALAND. Perhaps a still more remarkable attack on New Zealand was made at the annual general meeting of the Royal Sovereign Pencil Co., Ltd., by Mr Percy Charnaud, the managing director, who has just returned from a trip to Australia and New Zealand. Mr Charnaud declared that there was a feeling of insecurity and discontent

in New Zealand which was not evident in Australia. New Zealand is not, however, without its champions. The “Daily Herald” on May 23 made a vigorous protest against the attempts being made to undermine the Dominion’s prestige in London. After pointing out that the Royal Sovereign Pencil Co. and other British pencil manufacturers were enjoying considerable business privileges with New Zealand, the “Herald” made out an unanswerable case for New Zealand’s stability. It was pointed out that New Zealand had “balanced its budgets and even after enormously increasing its social services has not only been able to pay the service on her debt but also last year to reduce the capital sum owing by £4,382,000.” After quoting other New Zealand trade figures the “Daily Herald” city editor concludes: “Might I suggest that Mr Charnaud, who apparently has no reason to complain of the treatment given to his business interests in New Zealand, should present facts to support his adverse criticisms of conditions in New Zealand.” ECONOMIC POSITION. Another champion of New Zealand was Mr R. R. Stokes, M.P. for Ipswich, who wrote to the leading papers of this country pointing out that both as a member of Parliament and as a managing director of two firms which export to New Zealand, he was surprised to find that New Zealand’s sound economic position was not being hailed in this country with that satisfaction which is usual on such occasions. After drawing attention to the Dominion’s Budget surplus, the increased purchasing power- of the people and the satisfactory stabilisation of the earnings of the dairying industry, Mr Stokes drew attention to the anomaly that New Zealand stocks had fallen in value. “Perhaps our ‘bulls’ and ‘bears’,” said Mr Stokes, “might take notice of the New Zealand Prime Minister’s recent emphatic repudiation of the mischievous rumour that the Dominion is contemplating a tariff policy inimical to manufacturers in this country, and by their operations show appreciation of the traditional loyalty of New Zealand to the Old Country and a due sense of confidence in her great future.” New Zealand has certainly weathered well such storms of criticism as have come her way here, for there has been in the past week a greater sense of proportion in the comments of the financial Press. The powerful Conservative newspaper, the “Daily Telegraph,” even goes so far as to scoff, at rumours of New Zealand’s financial instability. The opinion of investors in the City of London is apparently not influenced by attacks on New Zealand’s credit, for the end of May saw a favourable rise in New Zealand stocks.