IMPORT RESTRICTIONS

Wairarapa Times-Age, 31 January 1939, Page 6

IMPORT RESTRICTIONS

VIEWS OF FARMERS’ UNION MEMBERS

“MADNESS TO SIGN PETITION" THE DANGERS OF INFLATION. ‘lt would be madness for us to sign any such petition,” remarked the president, Mr A. H. Morrison, when referring at yesterday’s meeting of the Wairarapa Provincial Executive of the Farmers’ Union, to a request from the Auckland Bureau of Importers, that the union support a petition of protest to the Governor-General against the Import Control Regulations. Mr Morrison added that he did not think the petition worth discussing.

Mr L. T. Daniell: “It is not for us to barge in at this critical stage.” It-was decided to take no action with regard to the petition of protest. Referring to a lengthy circular letter from the Dominion President of the Farmers’ Union on the question of import licence restrictions, Mr Morrison said the whole trouble was that we were selling in a low market and buying in a high one. Mr J. C. Cooper said that as the result of the restrictions the British manufacturers would be up against us right away. The sheep farmers, particularly the mortgaged ones, would be placed in a very serious position. The restrictions would probably mean disaster for a large section of New Zealand sheep farmers.

Mr W. J. Thomas said the introduction of the restrictions backed up his argument of last winter with regard to exchange and compensatory prices. If the exchange had been allowed to find its own normal level it would have averted a lot*of their difficulties. The worst was yet to come. Mr R. W. Kebbell said that it must have been a tremendous shock financially to the country to bring in the regulations so suddenly. The Ministers had said, however, that in time New Zealand would import far more than ever before from Great Britain. If that were so he did not think that the regulations would do much harm. He could not see British manufacturers “black-balling” New Zealand because she temporarily cut down hei’ imports.

Mr Morrison said there was a distinct danger of inflation. The Government intended to borrow £l4 millions for Public Works this year. The danger was that if the Government raised that money and spent it, the internal borrowing market would have dried up next year, and the only way to maintain the standard of living would be by inflation. Low prices and high internal costs was the trouble. The discussion then lapsed.