MR NASH AND THE TEA TRADE

Press, Volume LXXIII, Issue 21989, 13 January 1937, Page 7

MR NASH AND THE TEA TRADE

TO THE EDITOB OF THE PBKSS. Sir,—S. H. Beck, "Kaye Hoe" and Co.'s view that the world is overflowing with milk and honey must be a beautiful one; I only wish I could see it, but I am afraid the mirage evaporates when we apply "Kaye Hoe's" financial theory. He says that "when dealing with a country which cannot accept goods in payment, New Zealand has a right to contract with that country that the sterling credit must not be used as a bill in Great Britain for gold." That is the mirage; now for the acid test If "Kaye Hoe" has any surplus goods which are embarrassing his finances, or if he knows of any person or country that would like to be-relieved of surplus goods, actual or potential, I will guarantee to give cheques, bills, or any other form of promise to pay, provided that on no consideration whatever, either present or potential, shall that paper be presented to the bank. With closer reference to the tea trade, we seem to be lucky that Mr Nash did not go earlier. He may have sold, say, our sheepskins for Ceylon tea, and wool for half the gold we could get now, or, well, what could he or can he make a, safe deal on? Can he find' any surplus goods here or elsewhere? If he can find any surplus which is having a detrimental effect on holders thereof, it could be sent to our-poor old India, financed on "Kaye Hoe's" plan; i.e„ take an 1.0. U. and guarantee that we will never present it for payment. India has about 400,000,000 people. Their consumption could be increased greatly if she could produce the actual goods. She actually must produce the goods, consuming part and exchanging the other part It is surely very obvious that greater production of goods will reduce debi and would have prevented the last third of a century's phenomena] growth of capital, which was aided by collective bargaining or sectional bargaining. Mr Nash's mission seems to be sectional .bargaining.—Yours, etc., W. A. STRACHAN. November 12, ,1937.