TRADE POLICY

Dominion, Volume 25, Issue 275, 16 August 1932, Page 12

TRADE POLICY

Need for International Action BARRIERS TO BE CLEARED The steady and inexorable shrinkage of international trade ... is calling more imperatively every day for bold and decisive action, says Lloyd’s Bank Monthly Review for July. The latest report of the Economic Committee of the League of Nations, issued in early June, contained a most important and disquieting statement of fact. This was that in comparison with the average for 1930, the total export trade of 29 countries has fallen in value by approximately 50 per cent., while simultaneously unemployment has increased to the point where, according to the estimates of the International Labour Office, there are throughout the world approximately 25 million people out of work. While it would be an exaggeration to deduce that there is complete correlation between the size of international trade and the extent of unemployment, these figures leave no doubt that the two are closely connected, and indeed come as striking proof of the fact that one of the most serious consequences of the world crisis is its strangulation of international commerce. ’Die Review insists that the freeing and revival of international trade is one of the most pressing needs of the moment. The steady growth of import quotas and prohibitions, exchange restrictions and similar measures has had the effect of seriously reducing world trade. “The task of arriving at equitable agreements at Ottawa between the members of the Empire will be difficult enough, in view of the many conflicting industrial and agricultural interests waiting to be reconciled. Any agreements there reached will have to be stabilised over a long-term period in exactly the same way as home tariff policy. Here again assurances given at Ottawa may. easily conflict with mutual tariff agreements subsequently reached with such countries as Denmark or the Argentine. “Even in the field of foreign commercial relations, the road is not at all 'clear, for low-tariff agreements between ourselves and certain countries o'r groups of countries conflict at once with the principle of most-favoured-nation treatment,” in respect of which there are agreements with no less than 40 foreign countries. _ “Ottawa can, and ought, to be made an instrument for the restoration of world commerce. It is the duty of the British and Dominion Governments to frame their scheme in such a way that it can be enlarged to include other nations who want to join it and are ready to abide by its provisions. “The next duty is that of convincing both home and Empire public opinion, and in particular to show those who directly benefit from tariffs and preferences that they stand to gain far more than they will Jose from any downward revision of duties required by reciprocal tariff agreements with other countries which lead to a general lowering of trade barriers and liberation of international trade. In view of the serious damage already being done to British and Empire export trade by the high tariffs and other restrictions upon commerce imposed by many foreign nations, it is highly probable that public opinion even in industrial circles is already convinced as to this need. “Finally comes the attitude to be adopted toward foreign countries. The Governments should seriously consider whether the principle of most-favoured-nation treatment is worth preserving, or whether i.t would not be better to denounce outstanding agreements in order to clear the way for reciprocal lowtariff agreements with those foreign countries who are willing to enter into negotiations. . . In any case, the ultimate objective is clear. It is the removal, as far as possible, of existing restrictions upon trade, so as to establish over as •wide an area as possible economic freedom and sanity.” LONDON APPLE MARKET' ■ Prices for Late N.Z. Shipments The Department of Agriculture has received the following cablegram, dated August 13, from the High Commissioner for New Zealand, London: — Apples: Market continues quiet but ■fairly steady. Pakeha Stunners show waste, which affected market to some extent. Cumberland, Orari, Port Huon, Rangitata and Pakeha shipments have ■been cleared ex store. Current prices for New Zealand apples are: —

ANTARCTIC WHALING Catch Restriction Agreement An agreement between all the foreign and Norwegian whaling companies operating in the Antarctic (with the exception of one foreign and one Norwegian company) was recently signed in Sandefjord, after prolonged negotiations. This agreement restricts the catch during the season 1932-33 to a certain percentage of the catch during 1930-31, and fixes the production of whale oil at not exceeding 1.93 million barrels, while the capacity of the companies concerned amounts to about 4 million barrels. On account of the .heavy reduction of the catch, several companies will not be able to handle remuneratively the quotas allotted to them, for which reason co-operation has been established between the various companies. STERLING AND GOLD PRICES End of June Trend Writing on July 2, the “Economist" remarks that in spite of a fall of nearly 2 per cent, in the sterling exchange, “the past fortnight has witnessed a continuance of the tendency to which we called attention two weeks ago, namely, a slight rise in gold prices, contrasting with an opposite movement of sterling prices.” September 18, 1931, equals 100. "Economist” Indices. Complete Primary

Sectional movements of the complete “Economist” index are shown below. Jlovements of Individual commodities during the past fortnight have been irregular, but the textile group showed a slight upward tendency. “Economist" Index. (1927 equals 100.)

AUCTION DIARY

TO-DAY. a-S Willeston St., 2.30 p.m.—Sale property. Old Kaiwarra Rd, (E. Johnston and Co.). Allen St., 10.30 a.m — Sale poultry, etc. (Townsend and Paul). S Willeston St., 10.30 a.m.—Sale miscellaneous goods (E. Johnston & Co.) Levin Sale. S Willeston St., 1.30 p.m.—Sale radio sets (E. Johnston and Co.). 120 The Terrace, 10.30 a m.—Sale furniture, etc. (Kingsway, Ltd.). Woolworths’ Buildings, Cui®. St., 2 p.m — Sale furniture, etc. (Davis Bros.). 57-51) Lower Cuba St., 2 p.m—Sale furniture, etc. (Davis Bros). 01 Dixon St.. 130 p.m.—Sale furniture, etc. (C. W. Price). TO-MORROW. Adjoining Addington Railway Station, 12 n oo n—Plant and equipment, account .Messrs. Williams, Stephens, Ltd. (E. Jones Ltd.). 43 Panama St., 2.30 p.nt.—Sale property. 192 Barnard St. (Harcourt ami Co.). Lovin Saleyards. 12.30 p.m.—Annual horse sale (Associated Live Stock Auctioneers). „ , 145 Featherston St., 2.30 p.m—Sale property 540 High St., Lower Hutt (H. E. Leighton Ltd.). High St., Lower Hutt, 2.30 p.m.—Sale property 51 Trafalgar St. (W. Grant Rooms Fruit Exchange, Allen and Blair Sts., 1 p.m.—Unreserved sale of trees, shrubs, etc. (G. Thomas and Co.). Johnsonville sale. THURSDAY. Rooms 105 Customhouse Quay, 12 noon.— Sale property. 40 Balfour St., Mornington (S. G. Nathan and Co.). 202 Tborndon Quay.—Sale used cars, a/c Nash N.Z. Motors, Ltd. (E. Johnston and Co J.

Granny Smith 11/to 18/Yates 12/to 14/Dougherty 11/6 to 13/6 Rokewood .. 11/to 13/Sturmer 10/to 12/Statesman and Brighton 9/to 11/-

Index Products Irving Fisher, (sterlGold Date. ing). ing). Prices. U.S.A. Sept. 30 107.8 112.0 94.7 98.7 Nov. 11 110.3 119.3 103.5 90.3 Nov. 35 109.1 114.8 98.0 98.3 Dec. 9 110.3 117.3 93.0 97.3 Dee. 30 108.9 117.1 94.4 96.1 1932. Jan. 27 108.3 115.7 93.8 93.5 Feb. 110.9 120.9 89.0 9'2.4 Mar. 22 108.1 111.9 80.5 91.5 Apr. 20 103.8 105.4 83.0 S9.0 May IS 102.0 105.9 81.9 ,88.0 •lune 1 100.2 101.0 < O.S 87.3 June 15 97.8 99.7 80.2 80.0 June 29 97.4 99.3 80.5 ■ —

s cpt. 18. 1.931. June 15. Juno 20. 1032. 1032. Cereals and meat 04.5 69.6 08.9 Other foods 62.2 57.4 57.0 Textiles +3.7 43.2 43.7 Minerals 07.4 67.2 67.4 .Miscellaneous .. Go. 8 39.7 58.4 Complete index 60.4 50.1 5814 1JM3 aquaht 100 83J 81.3 809 1924 equals TOO 53.2 am 508