Trade With Japan

Dominion, Volume 29, Issue 201, 22 May 1936, Page 13

Trade With Japan

Sir, —lu Saturday’s “Dominion” a correspondent passed some remarks on trade with Japan which call for a little examination. When one country dumps goods in another country, the country receiving those goods benefits to the extent that the consumer pays less for those goods, thereby raising his standard of living; especially does this argument apply to New Zealand,

If we put a tariff on Japanese-made goods, she would probably retaliate, but the day Japan begins to build up a tariff wall will mark the time of her decay as a great competitive exporter. Like Britain, she is dependent on almost unlimited raw materials, which she does not produce herself, and she must have them us cheaply as possible. This tariff, then, would drive up the cost of tlie goods affected, and if Japan restricted her buying of our wool the price would drop. Consequently our purchasing power would be lowered by this double-action effect. As for japan growing enough wool for her own needs, I only need cite the instance of Britain. Why can’t Britain supply herself with wool? She has neither the area nor the climate. The same facts apply to Japan. Besides, we could undersell her. We have nothing to fear from Japanese competition with butter; here again we can undersell her, and various reports indicate that her butter is of an inferior quality. I would leave with pleasure the honour of both feeding and clothing the universe to Japan. Unfortunately, however, that is a little beyond the little brown man. With regard to the manufacture of synthetic wool, there is one drawback, or, perhaps, .1 should say two: the cost or production and quality. To Japan we owe our thanks for saving the wool industry by driving down the cost of production and selling the finished article at a price that makes the manufacture of synthetic wool uneconomical. —I am, etc., B. A. BARTHOLOMEW. Levin. Jlay 20.