CHAOS IN PROSPECT

Wairarapa Times-Age, 22 November 1939, Page 5

CHAOS IN PROSPECT

ON ACCOUNT OF TRADE RESTRICTIONS

IMPORTERS’ FEDERATION RESOLUTION. URGENT APPEAL TO GOVERNMENT. (By Telegraph—Press Association.) WELLINGTON. This Day. The following motion was carried al the annual meeting of the New Zealand Importers’ Federation yesterday: “The federation is gravely concerned regarding the state of financial and commercial chaos into which the Dominion has drifted and is still further drifting at an accelerated pace. It urges on the Government the imperative necessity of taking the leaders of political. financial and commercial life into its confidence and accepting their full co-operation in devising means of meeting the present financial and commercial crises, to reinstate the credit of the Dominion overseas, and to place the country in the best possible position to assist in the prosecution of the war. The federation finds, after two periods of drastic control of imports under the licensing system, that restrictions are having a devastating effect on the commerce of the Dominion. Unemployment among staffs of distributors is rapidly increasing and the community is fast becoming intolerant of the shortage of commodities for 'domestic requirements. The federation considers that the present favourable overseas market for our produce presents a unique opportunity of improving the unsatisfactory position of London funds, which should be availed of to the utmost by providing every means of increasing production. “That in the opinion of this meeting, the trading banks, with their established overseas connections and experienced executives, are able to provide facilities for handling sterling exchange which are not available under the control of the Reserve Bank and that consideration be given to restoring this medium of control at the earliest opportunity.” In his presidential address, Mr G. W. Guthrie. Wellington, said it would have been more equitable if imports had been regulated by means of the tariff and all importers, including Government Departments, had been included. Any reduction in imports necessary tc remedy the shortage of London funds should have been applied to all concerned. He said New Zealand was rapidly drifting towards financial chaos and only a substantial overseas loan would prevent a financial crisis.from which it would take at least a decade to recover. He urged moderates in the Government Party to accept the cooperation offered by the Opposition Leader, so that the country could regain the confidence of the British Government and the investing public.