SELLER AND BUYER.

Auckland Star, Volume LVI, Issue 103, 4 May 1925, Page 4

SELLER AND BUYER.

HOW PROTECTION WORKS. The speech which Sir George Taish delivered at Cincinatti is worth considering by Australia, a? well as by the United States (says the "Sydney Morning Herald"). The official position of each country, in relation to commerce, is similar. ' The United States does everything possible to prevent buying abroad, and yet has the most ardent desire to sell abroad. Australia has followed the example of the I'nitcd States, and puts every obstacle in the way of the admission of merchandise purchased abroad, while, at -the same time, making the most strenuous efforts to find new markets for her products. Yet it is undoubted tbat if we sell produce abroad we must buy merchandise abroad in return. There is a limit to being paid with gold for our produce sold abroad. It might be said that we could utilise the credits representing sales abroad to make investments abroad. Presumably we should require tbe interest on those investments, and that interest would come to Australia, in the form of imports or not at all. Australia is sti IL" largely undeveloped. She has not the surplus of funds which would ■permit the permanent holding of abnormal credits abroad. If they were so held it would be found that 'the greater part of Australian banking assets were abroad, and the greater part of banking liabilities were in Australia. Restriction of industry would follow. Another point in Sir George Paish's speech is worth remembering. It is America's attitude which is forcing Europe to restore Russia as a source of foodstuffs which that nation was prior to the war. We are helping America in that forcing process. Because we say that we do not want to buy from other countries, those countries will seek some country ■which will buy, as well as sell; some country which will take their merchandise as payment for foodstuffs supplied. Cables recently stated that tho small trader is again being allowed in Russia. It is only the beginning. Once the large trader is allowed to introduce. capital, Russia will again become an important supplier of foodstuffs. By bindering trade development with our customers we hasten the return of Russia as a world food supplier.