TARIFFS—WHO PAYS?

Auckland Star, Volume LXV, Issue 126, 30 May 1934, Page 11

TARIFFS—WHO PAYS?

Under the above heading "U.M.P." makes out a strong case for New Zealand being as self-contained as possible. This is quite sound from a purely human and economic point of view. It is, of course, quite unsound in the eyes of thoso who think only in money figures, and in terms of trade, Imperialism, internationalism, and so on. I offer seven main reasons why we should be as self-contained as possible: (1) Overseas trade makes us dependent on territories and persons entirely outside our legislative control. (2) War may at any time suddenly cut us off from those territories. (3) Opportunities for trade manipulation are much greater in the case of external trade than in the case of internal trade. (4) Exchanges are a source of perpetual juggle and worry. (5) Our geographical position causes freight to become a matter of more concern to us than it is to most other countries. (C) Only by being more selfcontained can we hope to find a solution of our unemployment problem. (7) Generally speaking, the world is warscared. Other countries, remembering the blockade lessons of the last war, are striving to develop their primary industries and to become as self-supporting as possible. This necessarily limits, and must ultimately close, most of our external markets. Bernard Shaw made this quite clear in his farewell broadcast. There are several arguments for fostering, if not boosting, external trade. But it must bo remembered that trade for trade's sake is a deplorably artificial and uneconomic creed. Big trade returns, and all that goes with them, may look very imposing to those who make their livings by causing goods to bo shifted about from country to country in this stupid world. They are of little value, however, to the unemployed or to the bulk of the people who are taxed in order to provide the unemployed with even the wretched existence that is theirs. I tliink that interest is the cause of most of our troubles. Before anyone seeks to hurl these words back in my teeth, I would ask him seriously to picture the result of the total abolition of interst. It will keep him occupied for a long time to come. I wish to make it plain that I do not refer to interest on existing ■ loans. I would not wilfully niar the mellifluous beauty of those words, "sanctity of (money-lending) contract." RIMU.