GOLD SHORTAGE

Dominion, Volume 24, Issue 61, 5 December 1930, Page 12

GOLD SHORTAGE

Rise and Fall in Value EFFECT UPON TRADE British Goods in Dominion Some interesting remarks on the gold standard' were made by Mr. L. A. Paish, British Trade Commissioner, when speaking at the annual meeting of the British Manufacturers and Agents Association yesterday. While every country was showing a spirit of nationalisation and trying to become an independent unit, said Mr. Paish, they must have some regard to the size of the unit. If New Zealand wanted to sell in the world’s markets she must depend on the prices of goods realised. Prices had slumped everywhere, not only in the products but in materials also, and the ultimate reason for it was the rise in the price of gold. If there was a shortage of gold, price rose; and if a surplus it fell. The United States had developed an acquisitiveness for this particular metal, and there was a shortage throughout the world, with the result that the real value of gold was rising. The banknote rose and fell with it. Britain’s Share of Trade. A good deal had been said about the proportion of British trade in New Zealand, he continued. Was it a reproach to the British manufacturer, or was it due to those in New Zealand who refused to buy British goods? The imports into New Zealand included large quantities of goods in which Great Britain was not a competitor, such as flour and wheat, fruit,. sugar, timber and petrol. Great Britain did supply lubricating oils, and also coal, but the transport factor operated in regard to coal. Of 48.8 per cent, of imports, 8.6 per cent, were noncompetitive. Of the total of competitive imports of £40,000,000, Great Britain supplied £22,500,000. In the classes in which Great Britain was strong she had 83 per cent, of the trade. The increased duty on confectionery made it impossible for the British manufacturer to compete. One British manufacturer had recently linked up with a New Zealand manufacturer, which should have some effect on the trade. Why So. Many Foreign Goods? Mr Paish commented on the fact that while Great, Britain eould supply apparel, could dress a baby from head to foot, a large quantity of apparel came from other countries. They could not get out here British calculating machines, cash registers, and many agricultural machines, but he heard there were some good tractors coming out and he hoped they would “fill the bill.” He wondered why so many of the things which went into the home were of foreign manufacture. Why could British manufacturers not put on a radio set sufficiently good for New Zealand requirements? He had been trying to find one. He wanted to remove the reproach that British manufacturers would not make what New Zealand required. They had good salesmen, but there were some manufacturers and salesmen who did not stand up to their job. In conclusion, he reminded agents that there might be some little danger in overdoing the sentimental feeling. The first feeling should be that British goods were the best, and that people would buy them because they were the best. The president, 'Mr. L. A. Edwards, said in regard to wireless, that there were British sets to be had which were superior to American in every point. The price was about half the American price.