CURRENT PROBLEMS

Wairarapa Times-Age, 8 November 1939, Page 5

CURRENT PROBLEMS

EFFECT OF RESTRICTIONS ON IMPORTS MEANS TO INCREASE FARM PRODUCTION. MR J. H. CUNNINGHAM'S VIEWS Some observations of u’eiieral interest on problems of 1 lie day were imide i his morning' by Air .1. 11. ( 'iiiining'ham. general manager of the W.KC..\. Ltd., in an interview.

"As far as the import restrictions are concerned," said Mr Cunningham, "it is only really now that the effects are beginning to be felt. When the import restrictions were first brought down in December of last year 1 anticipated that it would not be before September of this year that the effects would be felt, because most of the firms had been carrying big stocks. There is no doubt that the country generally has been over-importing, to a large extent because our export income has been pretty high. The shortage in sterling funds has not been occasioned entirely by over-importing; there are many other factors that affect the position as well and have a greater bearing than imports in the decline of the sterling position. It seems extraordinary, during the past four years, that with an export income showing an excess of seventy millions over that of the previous four years, we should find ourselves in the position of being short of sterling funds. Actually, we should have gone into the war in a first-class financial position, but unfortunately the reverse is the case. The licences for the third licensing period are pretty drastic and this, coupled with the fact that many overseas houses, owing to the outbreak of war. find their own organisation such that they cannot handle many orders on account of shortage of stall’, is going to make the position much more acute. Even the goods which we have been able to import under the licences which have been granted are bound to cost a good deal more because of the present conditions overseas: the depletion of staffs, etc., and also owing to the fact that increased freights and insurances will also have to be added to the cost. Apart from freight and insurance, there is : definite rise in the cost of commodities overseas, because of the conditions mentioned and this must make goods much more dearer when landed in New Zealand.

"Trade generally is quite buoyant,’’ said Mr Cunningham, "and is keeping up wonderfully well. We have noted with interest the negotiations which are taking place in London at the present time and the statement of the Hon. P. Fraser that if the Imperial Government wanted production to be increased in New Zealand steps would be taken whereby some'of our men on Public Works and machinery would be utilised in connection with farm production. In any case, it seems to me that we could, if the matter were handled properly, utilise a tremendous amount of labour in helping farm production. In this way. compared with England, where even women are forming what are called land forces, apparently little or nothing is being clone m New Zealand. There must be a tremendous number of mon who are now enjoying a forty-hour week who could be ashed to give up a few spare hours on Saturday mornings to help production and J am sure that many women also would be pleased to do so. It is stated that the totalisators arc an indication of the prosperity of the people and it is true that these returns are showing wonderful figures. But, after all, does it not indicate to some extent that we are living right up to our income, without placing a little away for a rainy day? From the heavy Post Office withdrawals and the fact that for some time past withdrawals have exceeded deposits it would appear that the people are not saving very much. Our credit overseas is in a deplorable condition and it is now impossible to send even a few shillings to Australia without a catechism as to why remittances are required. I am convinced that the action of the Government in this regard has caused a tremendous number of investors who have dividends falling due in Australia to retain the money there instead of bringing it to New Zealand as they would under normal conditions. “Some of the Government’s legislation.” said Mr Cunningham in conclusion, “is quite all right but instead of welcoming constructive criticism they seem to object to any criticism that is offered unless it is not exactly in accordance with their own ideas. Anyone should be prepared to consider the other man’s point of view and to profit. by it. All said and done, there is always another point of view. They should not be too thin-skinned to accept. so long as it is fair and reasonable. any criticism that is offered.”