ADJUSTMENT OF EXCHANGE

Press, Volume LXXXIV, Issue 25607, 23 September 1948, Page 4

ADJUSTMENT OF EXCHANGE

EFFECT ON TRADING CHAMBER OF COMMERCE REPORT ‘‘The sudden decision of the Government to remove the advantage of exchange to bur exports, and at the same time to force a write-off of stocks among the trading community, will calL for much readjustment,” says the annual report of the Canterbury Chamber of Commerce. ‘‘lt looks as though New Zealand will ratify the Havana Trade Agreement and. as’ this breaks down the old Smoot Hawley Tariff Acts of the United States, it must be of value to New Zealand when expanding markets become necessary. Expanding markets are vitally necessary for a young country, if it is to preserve its initiative and progress.” The report says that world conditions affecting New Zealand’s own imports and exports of goods are still chaotic, and more and more countries are instituting currency controls and import licensing. Even the United States today has a very small export market not affected by controls of some sort. In fact, the report adds, probably only four countries remain open to Ameri-’ can export markets free of currency problems and import licence restrictions.

The report continues: ‘‘New Zealand’s internal trade still suffers from shortages of many essential goods—children’s clothing and fencing wire are two extremes, but are illustrations of such shortages. On the other hand, there are, as the removal of exchange has proved, some cases of over-supply. All this can be attributed to a system of import licensing which is directed by a Government department which, although undoubtedly endeavouring to do its utmost, cannot possibly be expected to have the knowledge of the thousand-and-one items of trade learnt the hard way over the years by the importers and manufacturers of this country.

“This chamber has pledged its support to a tariff board which would have the advantage of a call on expert knowledge by importers and manufacturers of specific lines of goods under consideration. Until such a tariff board is set up. there must be chaos in the internal trade of this country, caused by a system of licensing importations which has completely outgrown its original status. “New Zealand is still short of skilled labour, and it is regrettable that an incentive to greater production has not yet been inspired by the recent Budget or any directives from the Ministers, from whom the whole country must expect a lead.”