OVERSEAS TRADE.

Waikato Times, Volume 119, Issue 19878, 6 May 1936, Page 9

OVERSEAS TRADE.

_ ' ( i (To the Editor.) Slr,———Your correspondent Mr R. : Bune evidently thinks that it is un- 1 necessary for the Government to make é reciprocal marketing arrangements ( before it guaranteed the price of but- ( ter and cheese, but I would remind ‘ him of the economic law that without ( a demand there is no use for a supply. I it. is. the object of the guaranteed price to give all dairy farmers a decent 1' standard or living, and if it fails or i succeeds the production of milk pro- v] ducts must increase, owing to the .\ fact of more money being available u for lop-dressing, new machinery, 6 etc. it is evident that markets will c have to be found before the products 1‘ are manufactured, to avoid costly n storage, and it must he realised that C we will not be allowed by the British U farmer to take more of his market 1. with a subsidised product. We may a have to face drastic restriction in e some shape. _ a \\'ith regard to the only difficulty t he sees in the scheme, that our overseas trade will have to be drastically acijuSted, I can assure him that it is long overdue. For instance, our trade with Great Britain since 1914’ to 1934 has been: Exports $721,937,013, imports £301.801,278—a yearly favour—able balance of approximately £lB.000,000, or half the exports—and the Labour Party's contention is that the balance goes back in interest, exchange. shipping and insurance n charges. \\'hilst disagreeing with ilthis, as interest and loans repaid since in tilt-i are about £125,000J10. or not L halt" the trade balance, 1 will leave it " for the time being, and give more 5 trade statistics. From 1014 to 10331 t \\'e exported to the United states of America £oo,~istl,ssb‘ and imported i“ $132,008,536. the adverse trade but— u ance being about $572,500,000, \\'ithit last year‘s tlgures to he added. Uur v exports to Australia in the same period n were 246,380,382 and imports £BO,, A 670,282. (Janmiian ilgurcs: l-prortslv 122,663,400,imp0rts- £45,2Ti,i20; and u a similar trend in trade \\ith the Dutch l East indies. t Your correspondent further states (t that a probable result or guaranteed prides will increase trade with the 5 mm Country, but he forgets that, this _\ tiovermm‘nt is pledged to help scuomi— \v ury industries, and thus cut down rfurther our imports from “Hull. p Britain. which will nmkc more unrm— u ployml‘nt Over there amt lesson the lit“ 1 muml for the products we now supplin (' The only rl'mmly i see is tirst of r nil to make rrriprm'nl trmln :1:rr«‘~ l—' monts with most other l'nunlrirs, Iw 1 must‘ it' our imports from iiit‘iillui‘t‘, to lilt‘ltl. \\'(ll‘iil keeping illrn lhr)‘ u slimiltl 1w lll't'lltti‘l‘ti to lake {'o prr ,\ rrnt, or Jlllli'l' irilt'b, unit not just .3“ ii por rent. or ii'ssl it‘ they \\uuld not 1tit) this. then lrl us .Ltrt all their ox— 1. ports in its i'rmn i‘:ll:«"i-ll|ti. \Viiil'it l u think \\uuld not then refuse to tnltcih the t‘Xil'it goods \\c .‘t‘litl to other i nations in rrlurn for the larger slmrc .. of our mnrltrt.»ul .nn, win, I, 11. 11. (I. ll.\.\ll"i‘tt\. " llurclnt. May 5. ll 'l