THE IMPORT RESTRICTIONS

Press, Volume LXXV, Issue 22636, 15 February 1939, Page 17

THE IMPORT RESTRICTIONS

to m anixom or m »asa Sir, —I notice that “Kaye Hoe" has answered some statements I never made and has not answered one I did make; so it becomes necessary to give a brief resume of this controversy. In his original letter British financial interests were charged with deliberately depressing prices for our produce while striving tq_increase or maintain prices for their finished articles in order to gain a throttle-hold on New Zealand. I replied, stating, first, that the argument seemed puerile as the "throttje-hold” already existed in the shape of a huge national debt, and 1 asked if the financiers who caused a slump also “engineered” the booms. To my first argument “Kaye Hoe” just reiterated that financial interests are endeavouring to get us into a hole through adverse trade balances and completely ignores my question regarding the booms. It is rather disappointing: for, to my way of thinking, whoever “engineered" the boom to coincide with Labour’s access to power did a confoundedly stupid thing. Further on I made the statement that British manufactured goods are very reasonably priced at the factory door, but that we add enormously to their price by customs, sales tax, exchange, and other excessive distribution charges. To that “Kaye Hoe” replies that the extra costs added to imports do not depreciate the sterling funds! In conclusion, your correspondent wrote many letters before the elections, dealing with the financial situation; but I am prepared to state that in not orje of them did he so much as hint that we were living beyond our means and that exchange would sooner or later have to be protected by some sort of restriction. I think that he owes the numerous people who must have read his letters some explanation as to how he came to overlook such an important question.—Yours, etc.. T.V.W.

Mitcham, February 13, 1939. P.S.—I regret that 1 find it necessary to ask for % little more space in order to discuss production. Guaranteed prices and market prices, under Mr Nash’s orthodox finance, are practically synonymous in the long run and nothing is done to remove the gap between cost of production and the average juice. Government statistics absolutely prove that dairy production is falling; so exchange restriction will have to be intensified, since that is the method of correction that the Government has chosen to inflict upon us. —T.V.W.