Meeting a National Crisis

Dominion, Volume 28, Issue 113, 6 February 1935, Page 11

Meeting a National Crisis

Sir, —"Defence" Ls evidently seized of the crisis which has developed in all the Civilised countries, but that is about all he has grasped so far. His concern about one nation dictating the price of the products of another nation, being similar to that of the "statesmen” of many countries, has precipitated a slump of world trade, which, if prolonged, will bring about the total cessation of international trade and u precipitation of Avar on a gigantic scale. Such results prove that such an insular and altogether false outlook is the worst that could be engendered.

I-lis fear that British shipping will be driven off the seas may be groundless, but that all shipping may be so curtailed and driven off the seas by the above polic’y is a very great reality. Shipping cannot thrive without foreign trade, and the country which is the first to initiate n policy opposed to that of “Defence” and others more highly placed; which opens its ports to the free exchange of goods, will quickly build the greatest maritime industry.

No nation can dictate to another ■what price will be paid for its products. Nations do not trade; it is individuals who trade. The individual trader who buys on the open market determines the price of all goods, which price is predetermined by what the final Consumer can afford to pay for them. No politicians I know of have advocated taxing the man on the land only. If they did and called it by other name than taxation they would be misleading the country. “Defence” may be confusing rent with tax, a common enough mistake. By the monetary system I presume “Defence” means the financial system which allows people to cash in on values which they had no hand in producing. I agree, and most people would agree, that such a state of affairs is most immoral and should not be allowed to take place. On the other hand, “Defence” surely would not defend a system which robbed the individual of what he himself had produced, had truly earned by the application of his labour power or the use of his capital?—l am. etc., 8.L.40. Wellington, February 4.