OUR MARKETS.

Auckland Star, Volume LXIV, Issue 85, 11 April 1933, Page 14

OUR MARKETS.

Has it every occurred to Mr. Bealc that if Amalgamated Dairies "have spent tens of thousands of pounds in the East without any success"—as Mr Beale freely discloses —they Bliould ceasc . wastefully to dissipate money and closc down? Until this happens allo\v me tc disbelieve Mr. Beale's statement that they are doing nothing in the East Also his pessimism derived from the "experience" of one, only one, distribut ing agency overseas, certainly is nc proof at all that there is no market Even some British and American companies may be quoted as doing little, poorly or nothing in the East. It does not follow that the British and/oi American trade with the Far East is consequently an absolute impossibility It just means that tliis splendid field foi our surpluses requires something mort than Mr. Beale's disdain, shown to the biggest market in the world, where China alone pays to the world hundreds ol millions of pounds yearly for imported goods, and where tariffs are practically unknown. Since. I mentioned froni 7000 to 10,000 tons of butter "prohibited to enter Hqme market," Mr. Dynes Fulton officially explained to Mr. Bcalt and everybody concerned, that as New Zealand would be committed to ship not more than 112,800 tons to Britain, there would be a surplus left in New Zealand of nearly 20,000 tons, "which must be disposed on either by forced sale ot destruction." I quite beliove that every effort will be made by Mr. Goodfellow, Mr. Beale and others to "light out" restrictions, but to what purpose 3 To imitate Soviets in dumping commodities, while there is still two milking seasons (only) ahead to be marketed duty free at Home? Britain shall, and will, live forthwith on quotas, having embraced protectionism, and Britain must curtail imports. "A year ago," says Sir Harry Goschen in London, "] emphasised that tlie firmest foundation f<jr a country's financial position is, and must be, its power to sell its goods (including shipping and other services) abroad, and to meet the needs of its own population, so far as possible, out of its own resources." This is done now hi Britain, and the importance of maintaining Britain's trade balance demands, he says, the necessity for active measures to protect it against handicaps, while British farmers must be assisted and British farming developed, Mr. Beale forgets that now sterling is divorced from gold for over eighteen months, having lost at least 35 per cent of its value, thus accounting for more sterlings derived from less sales overseas (as compared with 1930-1931), and that the decline in Britain's exports is arrested, besides, by bargains, quotas ar.d arrangements with foreign customers. Professor G. Wood and Mr. A. Whitlaw show figures of butter imports into Britain. Taking 1920 as 100 (import and price index) they prove that the import index of 1932 has reached 145 while the price dropped to 58. For the last seven years imports into Britain were always increasing (by 45 per cent) and prices were always declining (by 42 per cent), until to-day they reached the absurd level, • bringing us national disaster. It is clear, they say, that, irrespective of the world's depression and the decline in the purchasing power of British people, the chief cause of the fall in pricel is the increase in supply. Sir Mark Sheldon, here,' in Auckland, just said that were it not for quotas in Britain generally there would be no bottom to prices, owing to unrestricted competition, In face of facts, figures Bnd recent catastrophes, Mr. Beale's opinion to increase and stimulate 100 per cent trade with Britain "as the surest and best method of guaranteeing a better price for our produce" sounds alarmingly helpless, out-of-date and obstinate. J ALEX. S. TETZNEIt