FISCAL FALLACIES.

Auckland Star, Volume LVI, Issue 244, 15 October 1925, Page 16

FISCAL FALLACIES.

(To the Editor.. Sir, —Mr. John A. Beale is apparently | unable to support the chairman of the j Employers' Association in the latter's ' statement that the Dominion is overimporting, and it would be a waste of i time to follow him when he wants to discriminate between different classes of imports. The people of New Zealand have a right to buy what they please without dictation from anyone. As for , automobiles, these goods are very much | more desirable than some other thing 3: which are brought in and also manufactured locally. Motor vehicles are used exclusively for business purposes, and private cars are very largely used in the same way. Even when used for ' pleasure they are health giving, and are doing good work. This by the way. j The fact that I wished to emphasise I was that the people who for years past have been warning us against overimporting do not understand what they j are talking about. They imagine that '■ New Zealand international trade is covered by exports, imports, and I interest on the public debt. They ignore ' fresh foreign borrowings (which affect the balance of trade), and they are; necessarily ignorant of many factors which are not recorded in year books, j All transactions, however, go through : the banks, hence the exchange rates are ! a better guide to the balance of trade! than are the miscalculations of amateur economists. Any ' attempt to cut, down imports (except by the banks, and j for the purpose of adjusting foreign I balances) is futile. If successful it I would only make matters more difficult i for the exporter, assist the "drift to the towns," and place heavier and! unnecessary burdens on the community, i That is the Protectionist way, but tha economics of international trade will be too strong for those gentlemen, who, are more concerned with keeping out.; competing imports than they are with the welfare of industry as a whole.— I I am, etc., " C.H.N.