THE OTTAWA AGREEMENTS.

Auckland Star, Volume LXIII, Issue 262, 4 November 1932, Page 6

THE OTTAWA AGREEMENTS.

NEW ZEALAND'S GOOD BARGAIN. (To the Editor.) Your correspondent Mr. Ckas. J. "Ward ia his letter in your columns of the 31st ult. ig under a misapprehension as to England's action at Ottawa. The fact is England never dictated a course for her colonies. She merelybargained with them on a quid pro quo basis. She offered in fact to take our surplus products on a preferential basis if we would lower our tariffs sufficiently to allow her to export goods in payment. This was a very good bargain for New Zealand, and the alternative was a practical paralysis of trade, as if England cannot give goods in exchange she cannot purchase at- all, as her gold is required for debt payments. Imagine New Zealand's plight if England was unable to take her meat and butter, yet when England offers a possible method of exchange of good* by barter, practically she is accused of dictating our financial policy. Once Mr. C. J. Ward grasps the free trade idea that all trade consists in exchange of goods and money is only a medium of exchange he will realise the value of England's statesmanlike action. In the meantime, he will notice that England under free trade is proba'bly better off than Germany or America under protection. He will also realise that U.S.A. is -mainly indebted for her wealth to her immense territories, giving her the greatest free trade market in the world; and that her .present depression is undoubtedly due to her obstinate refusal to exchange goods with other countries, thus causing a paralysis of lier own export trade. -LIBERAL.