The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo. TUESDAY, MARCH 11, 1930. A COLLAPSED CRUSADE.

Auckland Star, Volume LXI, Issue 59, 11 March 1930, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo.

TUESDAY, MARCH 11, 1930. A COLLAPSED CRUSADE.

For the cause that lacks assistance, For the wrong that needs resistance, For the future in the distance, And the good that we can do.

When Lord Beaverbrook and Lord Rothermere first joined hands to preach the gospel of Empire Free Trade, doubts were freely expressed not only whether the United Empire Party would attain its object, but whether it would remain united long. So far as Lord Beaverbrook's principal purpose is concerned, we . have never been able to imagine how he could expect to persuade the Dominions' that their Protectionist tariffs ought to be abolished, and the eagerness with which he caught at Mr. Baldwin's carefully conditioned support of his programme suggests that the "crusaders" are only too glad to transfer their self-imposed responsibilities to the broader shoulders of the Conservatives. * If Lord Beaverbrook and his friends are really enthusiastic about their "crusade," or sincerely hopeful of success, they have done themselves some injustice by throwing themselves so promptly upon Mr. Baldwin's fostering care.

But there are indications that Lord Beaverbrook's anxiety to confer upon Mr. Baldwin the questionable distinction of promoting the new fiscal policy has not been due simply to lack of faith or to fear of failure. It is now clear that there have been all along serious differences of opinion in the United Empire camp. For Lord Rothermere, who assumes that the Conservatives have adopted the whole of the Beaverbrook fiscal programme, has now stated that the United Empire Party, quite apart from its determination to set up " a high tariff against imported manufactures," also insists that there shall be "no more surrenders to India," and demands "the severance of diplomatic relations with Russia." Lord Beaverbrook has not unnaturally demurred on the ground that his "crusade" was directed toward economic, and not political objects; and this fundamental difference of opinion about the purpose of the movement was certain to manifest itself sooner or later.

The fact is that the views of Lord Rothermere and Lord Beaverbrook, even on fiscal questions, are very widely divergent. Lord Beaverbrook's scheme of Empire Free Trade was to be supplemented by taxes on foreign wheat and meat, but' Lord Rothermere has declared that he is "unalterably opposed to any duties whatever upon foodstuffs." On the other hand, Lord Rothermere holds that British agriculture should be assisted by subsidies to the farmers, while. Lord Beaverbrook is "opposed to all bounties or subsidies" on wheat or anything else. The Beaverbrook newspapers threaten to oppose every candidate for Parliament who objects to food taxes, and the Rothermere Press will denounce all food taxers, and Mr. Baldwin as well if he supports them. But though Lord Rothermere and Lord Beaverbrook are both capable organisers and successful newspaper proprietors, neither of them has ever given proof of accurate knowledge or profound insight in dealing with fiscal questions, and with leaders so superficial in their outlook, so irresponsible and unreliable, any movement that they concerted together was predestined to failure. THE EXPLORERS' RETURN. It is not only the lapse of time that makes the return of Shackleton and of Scott's companions from the Antarctic seem like items in the history of another world. Between those days and the return of Rear-Admiral Byrd has flowed a wide and tragic river of history. Besides, invention has in the interval enormously helped the explorer. Shackleton staggering back ill; Scott pulling sledges weighted with scientific specimens, and dying within a few miles of safety—these stories belong to the pre-aeroplane age. Though Rear-Admiral Byrd took risks when he flew to the South Pole he reached it in a tiny fraction of the time taken by Amundsen and Scott. He and his companions, however, are in the tradition; it is only machinery that has changed. The warm welcome given at Dunedin to this gallant American expressed the feelings of all New Zealanders. The expedition was organised in the interests of science, and the flight to the Pole was only part of its work. Man will not be satisfied until he has wrested from Nature all the secrets that lie in that most bitterly inhospitable area, and our American friends have made a successful raid. A HIGH EXCHANGE RATE. The Australian banks have once more raised the exchange rate, which now stands at 4J per cent. This, of course, means that it costs £4 2/6 to remit £100 by cable to London; and as the banks operating in New Zealand are compelled partly by circumstances, partly by traditional practice, to follow Australia's lead in this matter, the Dominion will experience similar inconvenience and loss as the Commonwealth in most of its financial dealings'with Britain. The object of the Australian banks in raising the rate of exchange is, of course, to restrict the financial outflow from Australia by discouraging imports and making all forms of remittance expensive. This is a legitimate policy, but it raises the question whether New Zealand's interests would not be better served by local banks unaffected by the conditions prevailing in Australia. Apart from this, however, it is obvious that if gold were allowed to flow freely from the Dominion to London, the "telegraphic transfer" rate would be speedily reduced. As Dr. Neale pointed out in our last Thursday's issue, New Zealand has more than enough gold to cover the whole of its current note issue, and if the war restrictions, were lifted, and a portion of this gold cotild flow out, the pressure on the exchange would be speedily and 'almost automatically relieved. This is certainly • a matter which demands careful consideration from our highest financial authorities.