EMPIRE TRADE

Evening Post, Volume CII, Issue 41, 17 August 1921, Page 6

EMPIRE TRADE

A CALL TO LOYALTY,

BRITISH INDUSTRIES IN PERIL

LOCKED OUT BY TARIFFS.

" British industries are fighting for their very existence," said Mr. G. H. Scott, president of the New Zealand Association of British Manufacturers and Agents, at a special meeting of that body to-day. It was representative of all parts of the, Dominion and all British manufacturing interests. Mr. R. W. Dalton, H.M. Trade Commissioner, was alaoipresent. , <

The President moved:— That this meeting affirms: (a) That, ' in the interests of " Empire Trade" ■ aridi the protection of British indus- ■ tries, units of the -British Empire should carefully consider their position in. regard to' trading .with foreign ■ nations, who in consequence of existing policies . practically exclude ' Empire • products, (b) That the time has arrived for the Motherland and the Overseas Dominions in conference to attempt to lay down. a policy whereby inter-Imperial trade could best be consummated and conserved, (c) That, at the present time, the best interests of New, Zealand will be served by the expansion oi trade within the Empire, and, having this in mind, welcomes the Prime Minister's expressed sympathy regarding the extension of preference. - Mr. Scott laid stress upon the necessity for focussing public • attention and ■ interest on British industries and Empire trade; and also .to the need for .arousing among the merchants and the public in this connection a. determined loyalty and enlarged sense of duty, due . in any circumstances, but especially ' due in tije present abnormal conditions • to the kindred people and the industries of the, Homeland. .... ' "If ever there was a time for us to focus our attention on the world, the British Empire, and our place in it," he i said, "it is the present. No period in the past life and history of the British Dominions overseas, has produced a commercial period parallel with the present,. which is'so pregnant with the urgent necessity for us individually and collectively to give either as citi- , zens or traders in the Dominion serious thought to our position in gelation to the trade and industries of the Motherland. We have j become so used to! thinking of our normal; position in re-! gard to the purchase of British goods andl our trade with '•England, that we do not all sense, the dangers lurking in the; present trend o£-affairs, in New Zealand in relaion to the purchase (or Tion-purchase)-df 'British goods in preference to those 'manufactured by foreign nations. Furthermore, we did not ; realise. (until the late" war. taught us) I'that wihout England's great essential industries we could not have won the "•war," These years of 'war have shown us that the British Fleet and Army, behind which shelter, are. almost useless; without;; the backing of industrial organisations -in: proportipn to the size | of military and naval organisations; and capable in emergency of supplying | equipment, munitions," ships, etc. I A DANGER ; AHEAD. : .''To the' most casual reader there is abundant evidencje. published supporting the'tact that British industries are fighting; for their very existence.- Putting up a fight against conditions that are abnormal; against competition and restricted trade arising out of war and ■Eugland's war sacrifices, the aftermath of which, pipved^and remains, an advantage to • her:'trade ,com-' petitors, who had a free hand 'in- England's oversea markets/ whilst', she was making the world'a safer habitation for us a,nd., them. 1 The years, oiryiaa: were years™of. exceptional prosperity,: to our i)ominionj largely "accounted for'by .England's purchases of our produetisV .During tihese'years we became used, to the ■purchase of •'certain ' foreign goodie, imported because England's war activities .prevented her fuHy; supplying us. A great danger confronts us if this increased support of foreign/ products .is per- 1 petuated. The time is therefore most opportune for our association to '■ give the weight.of its organisation,to the ■ service of British industries. There is also the duty at present upon us to show clearly that' to,'thfe.fiocial-and economic development and safety; of this Dominion prosperous' British industriesare an inseparable necessity. It is necessary, we should take this.action., not merely on account of our interests in Bri--1 tish industries, but for the higher motives of loyalty to our Dominion ( and'the Empire to which we belong. > '. "-It must not be assumed that the gen- ' eral public, and the great body of people not actively associated with British trade, have opportunities of knowing the full position as it affects us nationally and internationally, and it, is therefore necessary and the duty of oiir own and all interested trade organisations to let the, public know clearly the position as it i exists to-day. We must remind the people of this Dominion that our individual, national,'and economic safety depend enormously on the trade support. they (the public) give the industries of the Homeland. New Zealanders .are equally proud of the sentiment that produced it, as-with the fact that per head of pur population we have purchased more.British goods than any customer the Motherland has. Notwithstanding this splendid fact, we find that the expansion of our purchases from England has not kept' pace with 'our progress arid development, which all are' ware' was' made possible by British financial assist^ ance 'and 6ther support (loans from Britain). ■',','• ; ■.;'■' .' '"'.';;■ " Past records show that while we Have continued to extend our loans from thu United Kingdom for development purposes, concurrently we have not expanded our purchases from her. On the. other hand, we have steadily expanded our purchases elsewhere. In 1910 our loans from the United Kingdom stood at £57,734,000. During the sathe year our purchases from the United Kingdom were ' £10,498,000, a little below 62^ per cent. 1 of our total imports.. Our largest volume of imports from outside, nations is from the United States of America, amounting in 1910 to £1,399,000, about 8 per cent, of the total imports. \ Comparing the above with the figures in 1913, we .find we had increased our loans from the United Kingdom by £11,195,000, making a total .of £68,929,000: Our purchases ; from the United Kingdom, amounting to £13,312,000, had in four years dropped from 62g per cent.' of our total imports to about 59 per cent., whereas the'im-' ports from the United States of America 'increased by over 50 per:.cent.- on the

1910 figures. "Naturally figures .for the years 1914 to 1918 inclusive reflected war conditions, and, therefore, cannot bo used in comparison. By 1919 'our loans from the united Kingdom amounted to, £95,708,----000, arf Tnorease since 1910 of £37,974,----000, equal to 65^ pc? cent, increase. Our purchases from the United Kingdom recovered considerably, amounting to £11,839,000, but it is saddening to note that although this was tho highest figure since 19H it only represented 38£

per .cent, of our imports, ; whereas in 1310 the percentage was 62A per cent. It was expected that 1920 would show ftfriskleraMe recovery. In volume this hope was realised. The percentage of

imports from the United Kingdom had risen to 48£ per cent., but -parallel with if we find that imports from the United States of America, instead of decreasing in proportion to the after-war recovery of the United Kingdom, increased tremendously. From £1,399,000 in 1910 they grew to £4,980,000 in 1918, £7,576,----opo in 1919, an increase of 441 per cent, since 1910, whereas our imports from the United Kingdom increased from £10,498,000 in 1910 to £11,839,000 in 1919, or only about 13 per cent.

"In. the face of these facts can we claim to be expanding our support to our Motherland and British industries in .proportion to the financial aid we receive far our developments? In addition to the above, ire have to remember that in eleven years, 1910 to 1920 inclusive, we exported to the United Kingdom £265,336,000 in value, and purchased £144,535,000 in return, leaving a balance of £120,801,000, an average of almost £11,000,000 per annum, which the United Kingdom has paid us in cash. We do not. overlook our Dominion war sacrifices and expenditure to assist the Motherland. The above figures emphasise pre-war and post-war facts, which are disturbing. > '

FOREIGN NATIONS.

"Whilst Great Britain was at war her chief-competitors had almost a monopoly of 'our markets. At the close of the war we find Great Britain is practically locked out (by high tariffs and prohibitions) of the markets of her competitors, all of whom use the British colonies and overseas Dominions as their best markets. On some important sections of manufactures, America, France, and Italy have prohibitive ad val. duty against England and other competitors. It must: therefore be remembered that on account of this existing extraordinary state of affairs, that Great Britaifi ami the British overseas Dominions are almost the only- field's to which export by England's competitors is possible, and we will ( therefore be over exploited. Great Britain's war sacrifices merit from the overseas Dominions, not the penalty of ■reduced trade by allowing her competitors undisturbed possession of these markets, but assistance to regain-and hold ■ her former position, It- is therefore claimed that in the present dangers-sut-rounding these industries those, sections of the Empire depending upon' the protection of the Motherland must assist in holding these> essential industries together. It is vital to producers in the United Kingdom that they should at least be given assistance and encouragement to get into the full.swing of their post-war production without being undefi mined during that process. We know that England's production' facilities are more than equal to the demand of the Empire. .What is to be our attitude to those nations whose tariffs practically lock out -British manufactures and our products from their markets and colonies? Is our tariff against them to remain lower than theirs ■ against 'us? Under any conditions we cannot agree'to become the dumping, ground for the surplus productions of foreign nations whose internal policy makes the sale of our products and England's manufactures almost impossible in their markets. Little doubt the people of this Dominion will quickly size up such a position, and, will correctly, express their resentment of the foreigners' policy by specifying British . productions. -It is our duty under any circumstances, but especially, is it our duty under these circumstances to advocate at every opportunity 'Empire trade.' , ..," TRADING BASIS NECESSARY. "A correct trading basis, inter-Imperial and .international,, is necessary for our Dominion arid for every unit of the British Empire. I believe that you all agree that the development of our Dominion and the Empire is considerably involved in the bonds of Empire being cemented: by a' sound inter-Imperial basis of preference trading,' combined with reciprpcal international trading for each unit oh a basis more equitable than the present promiscuous and non-re-ciprocal methods our Dominion lollows. Retaliation may not be the best measures to adopt against those countries which have for various reasons raw.id their'tariffs against British manufactures and Empire products, but it may function as a stepping-stone to reciprocal bargaining. In view of the, exclusive tariffs' of some nations, no stretch of imagination can suggest that the iariff conditions under which the Dominion. is at present.trading with them /upply the elements of fairness to ourselvas or j.'thn. Empire.:; ' "The time' is surely arriving when a. united Empire' might attempt to frame some of the terms of international reciprocity;. So.long as units separately trade with foreign nations without reciprocal- international terms, they may do so to the very serious disadvantage" of themselves and the Empire. ' „■> ■ , "Tariff revision will be_ before Parliament next 'session. ' Opportunity, will then arise for us to emphasise the claims of British industries, and to impress the Government with, the advisability of collecting from foreign products any additional Customs revenue required.; Notwithstanding any assistance granted in our Customs tariff the, most valuable assistance British industries can have is an extension of. the sentiment and goodwill already existing 1 in New- Zealand,' brought about by a fallen 1 appreciation of the needs of and our; duty, to the Motherland; Our trade patriotism expressed in deeds should, not fall below the standard of our .war patriotism." In closing, Mr. Scott summarised reasons for supporting British industries and Empire trade as follow:—"Wo are blood of their blood., Our support means food and relief 1 to. millions of workers in the-Motherland. All the elements of social and economic safety^ for our Dominion and Empire are interwoven with the. successes or failures of our Motherland's , industries. We, depend for our national and ■ personal' safety upon England's fleet,and army.. Our future safety demands, that we support the British Navy through British industries or taxation. For our financial safety and development we' depend . upon England's loans to us, Our laws are based on Bngland"s laws. England purchases 60 to 65 per cent, of all our products. England's purchases of our products ,have given ,us the prosperity we enjoy. All we, have and the best things we stand for as individuals and as a Dominion we owe to the fact of Britain's parentage and associations."

The motion was seconded. (Proceeding.) •