"PANIC NATURE."

Auckland Star, Volume LXIV, Issue 16, 20 January 1933, Page 8

"PANIC NATURE."

IMPORTERS* VIEWS. MORE UNEMPLOYMENT? RESTRICTED BUYING CERTAIN. Big importers of English goods in Auckland, as though speaking with one voice, decry the new rate of exchange, and most of them point out that as far as they are concerned the Government's measure will lead to restricted buying of imported goods, likely to be followed by further unemployment. "I regard the action of the Government as fundamentally unsound," said Mr. J. Marsden Caughey. "The country may receive for a short time a slight stimulus to trade generally, but in the long run the opposite will be seen unless something very extraordinary takes place in the way of increased prices for our primary products in the world's markets."

Mr. C'aughey said he viewed the new legislation as being of a panic nature. It would have been far preferable to pay our producers a subsidy bonus. That would have been far less expensive and disturbing to the masses. The new rate would affect those who did J.. '; have cash in London to pay for their goods. Eventually it would affec„ all, - for the higher landing cost of imported goods would have to be passed on to the purchasing public.

The following table prepared by Mr. Caughey shows graphically the landing cost of poods in. 1930 compared with 1933. It includes exchanges, duties, and other charges:— Nov.-December, January, 1930. 1933. Eng. Foreign. Eng. Foreign, p.c. p.c. p.c. p.c. Cotton piece goods 15 35 40 67J Silk piece goods 15 35 40 671 Wool piece goods 40 75 05 ' 105 Apparel 521 812J 67J 11UJ "The tendency will be for further restricted buying," concluded Mr. Caughey, "and this is likely to lead to further unemploymerit."