THREAT TO BUSINESS

Waikato Times, Volume 125, Issue 20950, 1 November 1939, Page 9

THREAT TO BUSINESS

WELFARE IMPAIRED

GOVERNMENT CONDEMNED HAMILTON RETAILERS MEET LEGISLATION RUINING TRADE Strong condemnation of the import restrictions and other allegedly socialistic legislation of the present Government in New Zealand, which it was claimed was ruining business, was made at the annual meeting of the Hamilton Retailers’ Association last night. Speakers from various classes of businesses expressed concern at the trend of events in recent months and the opinion was made that some action should be taken immediately in an effort to allay the drift. No resolution was before the meeting but each speaker was applauded following his address. Government Shutting the Door “The things uppermost in our minds are the difficult and unprecedented conditions that we are at present passing through,” commented a representative of the Auckland Drapers, Clothiers and Boot Retailers’ Association. “Most of us have had experience of war conditions in business and we know how to handle them, but none of us has had experience of a Labour Government performing as the present Government is. It is shutting every avenue for the individual. When the Government says it is not going to shut the door any further we know that it is merely a farce.” In deploring State control, the speaker said it was obvious that anything brought under State control had risen in price, yet the private commercial concern had been told by the Government that it was not to increase prices. He said he gave the Government credit for endeavouring to keep prices down, but its failure to do so was due to the lamentable lack of business training of the men who were in control of the State. Restricted Market for Years He impressed upon the retailers the necessity for fighting to see that the percentage increase in wholesale prices was reflected in the new retail prices. He claimed that the retailer had a right to raise the price of stocks in hand when the price of incoming stocks had risen, because he had to guard against the day when prices fell and stocks on hand, which had been bought at high prices, had to be marked down when retailed to the public. “If the import restrictions were lifted tomorrow,” continued the Auckland representative, “it seems obvious that, we should be no better off for, as traders, we are controlled . by the amount of sterling available, j It is obvious that we do not possess j the sterling credits to purchase the i goods we would wish to and, therefore, we would have to operate on a restricted market in any case for seme years to come. How are : going to meet this position? If we lean on the local manufacturer we will find that he cannot import the material he requires to produce the goods. “Unemployment must follow in the train of all this,” he added, in stating that the usual class of unemployed were unskilled workers whom the Government provided for, whereas it was apparent now that a new class of unemployed would arise the skilled worker. How that would affect the political situation he was not prepared to say. Traders overseas were not going to continue sending goods to New Zealand indefinitely unless they could see that they would be paid for them. He said the Auckland association would be happy to assist the Hamilton one in any way possible during the present difficult period. Government Interference One of the Hamilton retailers said during the Great War business was restricted in the purchase of goods from overseas due to war measures. Restrictions now, however, were not only due to war measures but more so to Government interference. How the traders would surmount the difficulties he did not know. He considered the sterling funds would be larger at the end of 12 months owing to the prospect of increased exports of dairy produce. “I do not think the Government will let us buy the goods even then, however,” he added. “It has set itself to a socialistic policy that it will carry through to the bitter end. The Government has its foot on our necks and it will keep us down all the time if we let it. We will not be allowed to use our initiative and we will be herded together like a flock of sheep and told how to run our businesses. I am of the opinion that if our side can be 100 per cent solid, the same as Labour supporters are, we have a chance. If not, our existence will be cut from under our feet and it will be only a matter of time before the State will own everything in this country.” Is It Justice? Stating that a total import restriction had been placed on all photographic lines, Mr F. G. Watson said some businessmen had been striving for 20 years to build up a business and overnight they found they had nothing. “The Government says finish, and we have to finish. Is that justice? The Government says that is what you can have and if you cannot carry on business, go out. It seems that it will be only a matter of passing Christmas and all goods on our shelves will have disappeared. Then we will have to dispense with our employees and then we will have a depression all over again.” One of the members said that the times that the business community was passing through at the present time would affect the smaller retailer more than it would the larger firms. Many of the departments in the bigger stores, however, could not get a pennyworth of goods for the shelves because of import restrictions and other Government measures. The position that had to be faced up to now was unemployment, as staffs would have to be reduced. It was the speaker’s opinion that the employees would have to do something to safeguard their own position. The Government was more likely to take

notice of a wage-earner than of the businessman.

Worth Fighting For

“I think the majority of the employees realise the seriousness of their position today,” said a speaker, “There has been a tremendous change over the last 12 months or so. Then the employees very largely voted for the Labour Party, a great many doing so because they thought there was a force behind them forcing their hand. “Within the next year the position will become serious. Then there will be practically no stock to sell and even those who have it may not be able to sell as there will be widespread unemployment. If we do not act soon it will be too late,” he said.

“The Government in New Zealand would welcome the destruction of trade because they are trying to socialise everything. We are not in a European country. This is a British country, so why sit down and take it as we are? If it is worth fighting for it is worth fighting for now T .”

“It would seem a pity to adopt a policy of agitation which we have opposed for years, but I am fully in accord with other speakers that we should act in this direction,” said Mr A. J. Yendell. “I think that the community as a body should make a strong protest. The time has come to organise the retailers’ associations, the chambers of commerce, the farmers’ unions, and builders and other business organisations and have a mass meeting of trade and commerce.” Revolutionary Feeling A representative of the Auckland Importers’ Association said that body had done a great deal of work in making representations to the Government to have some of the import difficulties smoothed out, but the time had come now when the businessmen would have to have more satisfaction than that. “There is a feeling throughout New Zealand which is especially strong in Auckland, that is almost a revolutionary feeling,” he said. “We all realise that the present condition is very serious. We should go to the Government and make it plain that the country is not going to stand for the results of its socialistic legislation. If we leave it too long the war will be blamed for a great deal of the existing trouble. It is j necessary to make our stand now.” Importing Difficulties Mr Hugh Thomson, president of the Auckland Importers’ Association and vice-president of the Auckland Drapers and Mercers and Boot Retailers’ Association, said that -when the Hon. W. Nash announced that during his recent visit to the old country, he had arranged a loan of £4,000,000, which was to be earmarked for the financing of imports, the hopes of traders were raised. This had not worked out as represented. “There is no evidence of the actual funds being available,” said Mr Thomson. “All that is provided is a scheme arranged with the Exports Credit Department in London. “On a shipment being ready the importer lodges with a trading bank here funds to the full amount of the invoice, the Export Credit' Department in London will then issue to the shipper a guarantee of payment |up to 75 per cent, of the invoice I value; armed with this, the Minister states, the exporter can discount his j draft and thus obtain immediate pay- ! ment of a substantial portion of the amount owing. “Here is the ‘fly in the ointment.’ None of the trading banks operating in the Dominion will discount the draft simply because they have not the New Zealand funds available. (Australia has taken good care that we do not use her funds). Smaller Traders Affected “The shipper is, therefore, forced to operate through a British bank or loan organisation. Those who have agents in London, with established accounts with British Banks are probably able to make suitable arrangements, but there are many not so fortunately circumstanced, and they have to seek other means, either by arranging long term credits, or waiting until their credit authorisations from the reserve bank value at this end and then remit the funds.” Mr Thomson stated that this especially affected the smaller traders who probably were not so well circumstanced in regard to London arrangements as the larger concerns. Here For a Long Time Speaking in respect of the likely improvement in London funds, as the result of higher prices for our produce caused by war demands, Mr Thomson said the Dominion was so far behind scratch with her payments that it will probably be a long while before the present system of import control is abolished. Ruined the Country “If the import restrictions are not lifted, the small businessman will be ruined,” stated another representative from Auckland. When a delegation confronted Mr Savage with that position the Prime Minister had merely replied that that would be nothing new as they had already been ruined in the last depression. When the position of the staffs was put to Mr Savage he had replied that he would not allow them to be penalised. “Soon our shelves will be empty and no one will be able to blame us if we do not keep cur full staffs,” added the speaker. “It will be too late to take any action after Christmas, for then the damage will have j been done. We should have had co-operation of businessmen throughout New Zealand when the import restrictions were first placed on us.

“The indent agent is now finished, the wholesaler is almost ruined, and the retailer is going to have a very difficult time. We know that the Government has ruined this country and that it is still doing so, but we are not silly enough to sit down and let them tell us how to run our businesses and have them ruined too. We ought to tell the Government now that we are going to run our own businesses as we <hin|t they should be run.”