GOODS FOR GOODS

Wairarapa Times-Age, 19 May 1939, Page 6

GOODS FOR GOODS

MANUFACTURING *IN NEW ZEALAND DOMINION PRODUCED RAW MATERIALS. EXPORTS NEEDED TO BALANCE LONDON FUNDS. “The most interesting point in the manufacturing industry of New Zealand,” states Mr Hugh Morrison, Wairarapa Provincial P»esident of the Farmers’ Union, in passing some comment on the position, “is that the only raw materials produced in the Dominion for local manufactures are wool, pork, fruit, dairy produce, grain for flour and brewing, fats for soaps, etc., hides for boots and shoes, tobacco and flax and in the various industries allied to the manufacture of these articles about 25,000 persons are employed, out of a total of 96,000 engaged in general manufacturing processes. The primary producer is responsible for the appearance of 25 per cent of the total raw material manufactured in New Zealand and such manufactures represent the only 100 per cent New Zealand made goods. The Prime Minister states that the only borrowing he will favour is for the purchase of raw material for use in New Zealand factories This means that 75 per cent of raw material for New Zealand manufacturers must come from overseas.

“There would be no need to borrow for this purpose,” states Mr Morrison, ■if the primary producers, who are the exporters, could be assured of an economic export price and thereby keep the London funds intact. The importation therefore of the raw material not locally produced depends entirely upon the volume and price of the exports of the primary producer. This proves that the adoption of secondary industries on a large scale cannot be accomplished without the necessary volume of exports to produce the balance of London funds, to enable the necessary purchases to be made, as borrowing for this purpose could only be for a limited period. In other words, we must barter goods for goods.” Other matters relating to farming industry will be dealt with by Mr Morrison in the course of his address at the annual meeting of the Wairarapa Provincial Executive of the Farmers’ Union to be held on Monday.