Free Trade Advocated

Dominion, Volume 26, Issue 102, 24 January 1933, Page 11

Free Trade Advocated

Sir —ln a recent letter I pointed out that ’New Zealand’s troubles were due mainly t 0 maladjustment, m that our farmers bad- suffered a severe reduction in their incomes through the price level for their products, and that other sections of the community had received an undeserved benefit m obtaining their local foodstuffs aud imported good> at lower prices. . Had an exchange rate approximate ij the price fall been imposed at the inception of the depression most of our losses could have been obviated. Much readjustment to the new conditions, however, h. - taken place, particularly with wages am interest, and it was debatable whether jt. was not now too late to increase the -- change rate without risk of greater disl.cations. For better or worse, this question is now settled; and it is to inquire what, beside its obvious intention to assist the farmer, will be its conserious feature of the new exchange rates will be the enhanced costs Of imported goods. Acting, as .it does, as an additional Customs tariff, it will encourage the local manufacture. of goods which should be imported to maintain the trade balance to pay for our Almost certainly, the manufacture ot tinsimpler classes of goods will be increase/ in this country, leaving Loudon funds to pile up. and fostering the importation ot ’’luxury” articles. The time is opportune to establish free trade, tor our loca manufacturers should be amply protected by tie exchange rate and the freight C °As to the loss of revenue, and a new source from which to obtain it, there is the laud. It is generally accepted that a principal factor of the depression was land speculation. It will be a noble ae to collect our revenue from this source and to prevent for ever a recurrence ot evils similar to those we now endure. This policy should not be undulj severe on our primary producers, for citj values will account for two-hfths of th< aggregate revenue. Paying an economi.rent for his land; receiving through the operation of the exchange rate a more equitable price for his products; purchasing his requirements, thanks to tree trade, at the cheapest rates—the farm'.’) should soon be prosperous. AAith farmers once more demanding goods, the pto>perity of other sections of the communit' Will also be assured.-! am^^ CTlc AA’ellington, January 20.