The Dominion. MONDAY, AUGUST 28, 1033. AN ECONOMIC PORTENT

Dominion, Volume 26, Issue 285, 28 August 1933, Page 8

The Dominion. MONDAY, AUGUST 28, 1033. AN ECONOMIC PORTENT

- Twenty-nine nations liavc agreed to » ■ wheat production and of regu fallen J 0 gr amlantts »y .. .. countries. -The convention contains serious a ?reemessages'published result must be regarded as a ■ r S.to take ietf account in '° f S Wheat presents one of the most / ifficu States Most countries'grow more or less. A few such as the United States '’ Canada Argentina, /Russia, and Australia possess in wheat a major < export industry. Many others must'import some grain to make up ■ domestic supplies but are. more intent, for reasons o national policy home.production, than upon importing cheap wheac .for . f wheat there’are, a multitude of conflicting interest ? to reconcile. ' Any scheme of regulation must include not only the acreage of the exporters but the tariffs of the importers and eyen .pay some regard to the .latter’s home crops. To reach an agreement encroachments must be made on national as well as'individual rights, , and national'policies must in some cases yield ,to international considerations. , <■ _ • Against such obstacles any sort of’progress would be an achievement. In the case in question,'.serious national reservations remain and there is lack.of .definition on the vital point-of tariff reductions, 7?s6 4 that the agreement may hot be very , effective. Yet the fact that it’ has been reached represents an international acceptance of regu- ■ lation as opposed to the old doctrine of laissez faire. •• 7’ Tlt is-in.that sense that New. Zealand should realise',the portent ■' of the-international’wheat agreement. It'is- true that-she/seldom ■ has an Exporting interest inwheat but. the new convention has wider /• implications for) her. At the moment New Zealand is trying to out- ' face’the modern trend and .claiming the right' to export and sell as much as'she can produce—of butter, cheese, meat and wool. The ■ world has agreed to put limits on freedom-of production—“productive "/anarchy,” the French call it—in the case of wheat and may not stop ■at wheat. ... ' ■ 1 , , '- There is more than a possibility, of course, that this and other 1 attempts at regulationof supply may break down. 'ln that case the world might fall back'on'the laisses faire method'of selection, the survival .of, economically the fittest, i Perhaps the avoidance of that stern process of winnowing is a main cause of existing confusions. .Meanwhile- New Zealand should observe and ponder upon the- significance .of ,the international wheat agreement. ' 1