Trade By Barter

Dominion, Volume 29, Issue 225, 19 June 1936, Page 13

Trade By Barter

Sir,—The Hon. Mr. Nash has probably taken as one of his models the bartering method in use by Germany at the present time, not from choice, but by compulsion. Dr. Schacht has been forced by political and economic conditions to enter into agreements with some countries under which he exchanges exports for impoits, and the comment in the letter from Germany, published in the “Economist” of May 2, 1936, p. 243, is certainly of interest to us in New Zealand who are on the eve of seeing Mr. Nash, attempt to make similar agreements with our exports : — ~ . . ••'Disadvantages inevitably arise out of Dr. Schacht’s own system of selective raw material imports, the aim ot which is to balance trade accounts with individual countries. This involves the import of inferior raw materials (cotton, etc.), and also the payment of inordinately high import prices, ot which some striking instances appear in the Press. In this way the balance of payments is harmed, too much is paid for imports, while the ability to export is weakened. The increased subsidising ot export is a consequence; but' bv ignoring the important consideration ot national economic protit or loss, it seems possible at present to attain whatever trade is desired." —I am, etc., NATIONALIST. Wellington, June 18.