STATE CONTROL OF TRADE

Dominion, Volume 38, Issue 2, 27 September 1944, Page 5

STATE CONTROL OF TRADE

Early Relaxation Sought IMPORTERS’ POST-WAR PLAN "It is to free cutcrprise that we must look for maximum employment iu the post-war vein's, and to which the iovernmeut must look tor the revenue necessary for post-war reconstruction. * axi mum employment can he maintained on y if individual incentive is encouraged and rewarded,” says a statement issued by the Bureau of Importers, which recommends an early relaxatiou of all State contraot' trade and commerce and a return <> the system of free enterprise. “All employment arises out of aud commerce—the production and « change of goods,” it continues, should therefore apply wf. creasing the production of exchangeable goods—goods for which there is a demaud—either within this country or overseas, where they can be exchanged tor goods which cannot lie produced so economically in New Zealand. Me can lie assured of a market only lor those commodities that we can produce more economically thnu other nations, bustameu maximum employment, therefore, from which will arise the highest standard of living, will accrue only if we direct our productive capacity to those commodities in the production of what we possess die greatest comparative' advantage, exchanging those products with goods which can bo more economically produced in other countries. , “New Zealand has not been favoured with large deposits of iron ore. or other metals, nor has she the population necessary for the . successful development of industries based on these raw materials. New Zealand, however, has been blessed by Nature with a fertile soil and an equable climate, permitting of the grazing of stock throughout the year. In these factors z it possesses a great comparative advantage over other nations. Accordingly, its economy should be based primarily on the development of primary industries, production of butter, cheese, dried milk-, casein, meat, wool, hides, tallow. etc. In addition, this country should develop secondary industries ancillary to primary production, such as meatJpacking. canning of foodstuffs, and industries based upou the comparative advantages offered, by fast-grow’ing soft woods. There are many other industries serving primary production which can be economically operated in New Zealand — the manufacture of canisters, dairy machinery. milk cans, tinware, brushware, woollen goods, woodenware, fish aud vegetable canning, etc. Trade Between Nations. “Trade between nations should be encouraged and not hindered. It was never intended that mam should be denied access to his needs, yet obstacles to trade often deny to people their elementary needs of food, clothing aud shelter. The betterment of mankiud calls for the removal of all obstacles to trade, controls of imports, exports aud exchange, tariff barriers, trade quotas, and blocked, exchanges, iu a movement toward the ideal expressed in the Atlantic Charter. “A pre-requisite to increased production of trade aud commerce necessary to promote maximum employment are drastic reductions aud adjustment iu taxation both direct and indirect so as to encourage and reward individual initiative. To ensure maximum trade the bureau urges a general scaling down in tariff barriers and the removal of trade, obstacles. It supports the aims aud objects of the monetary conference for the reestablishment of an international medium for the settlement of trade balances, and approves of gold as the best exchange medium so far devised’’for this purpose. The bure.au supports development of industries which can he economically operated! in New Zealand, and it opposes artificial protection and the granting of monopolies “While supporting the ideal of international free trade, the bureau believes that tins is not possible of achievement till tjie standards of living of certain countries have been considerably raised. Meantime it supports the retention of Imperial preference with a general and progressive scaling down of tariff barriers. The bureau favours the levellingup of living standards throughout the world and opposes the policy of economic nationalism, and favours also the. policy of multilateral rather than bilateral trade.”