THE TARIFF

Evening Post, Volume CXIII, Issue 29, 4 February 1927, Page 8

THE TARIFF

A NATIONAL STOCKTAKING

(To the Editor.)

Sir,—lt is written, "In the multitude ol counsellors, wisdom prevails." Apparently in th e present issue, confusion preva^s An important point is the assumption by many farmers and others, that the iostermg of manufacturing industries by a protective tariff is largely at the expense of the fanning, community. This assumption is not peculiar to -New Zealand, but is also held to some extent in Australia, Canada, and U.S.A. A great, deal has been written on matters arising out of this assumption, but the main issue is persistently avoided. It. is^beyond question that our farmers arc-not as prosperous as we should like them to be, and that it is vital to ouv country that this condition should be changed as quickly as possible; the resultant questions are the cause and the cure A diagnosis of the cause or -causes must be supplied before a cure can be prescribed. Many of the symptoms will ated Will the idea that the farmer suffers, from the protection of the manufacturing industries prove to be an imaginary symptom? Who shall supply the fft? for the diagnosis? Who has the ability and the facilities for the research work required? There is no man in New Zealand better equipped for this service than the Government Statistician. The Statistical Department has most of the information required, and can readily obtain any additional information if required, its officers are keen to be of service x\o commission could obtain or tabulate the information on record in this important Department. *.nV wil F >re n()S essary i know the total trade of New Zealand: The value of the internal trade and the amount of its turnover; the total value of all farm productstie total value of all primary products; tne total value of the manufacturing industries; the total value of all services rendered to the people and State of New Zealand. Ihis is done in the U.S.A.; why not here?

Let there be a national stocktaking all the items that constitute trade and service being entered to the debit or credit « °A. the natlonal accounts. Show exactly the effect of an adverse balance on our external trade and on the total trade ol the country. Does an adverse balance or a lew millions necessary mean all the dislocation of trade and industry, and all the miseries ,of unemployment that financiers interested in external trade would Have us believe?

It seems incredible that the -country should be asked to believe that the only wealth created is that resulting from external trade. There is absolutely no comparison between the effect on the prosperity of New Zealand of the internal and external trade. With services included the internal trade is easily five to one of the external trade, and all the gains stay in jSew Zealand. The balance of trade i» favour of New Zealand could be easily improved by £5,000,000 in 1927; £10 000----000 in 1928; £20,000,000 in 1929; and £30,000,000 per annum afterwards, by £he development of our manufacturing .industries. Primary industries could be given a chance to develop by intensive commercial farming, instead of by costly extensive methods. To endeavour 'to increase production by bringing in inferior land is iilty years behind the times. Statistics show that commercial methods in farming, the increasing use of machinery and motive power, have resulted in a 300 per cent increase in farm products, to an SO per cent, increase in labour, and the end is not yet. The decrease of 9000 in the number of farm employees is a significant factor in the unemployment problem. Failing a development in the manufacturing industries, unemployment will be a constant factor.

J.he question whether some industries are worth protecting and some are not. is not pertinent; neither is the length of time that protection' will be required. The question is: Will a' frankly protectionist, policy lead to the expansion of manufacturing industries, .aided- by overseas manufacturers establishing works here, or must there be a blind adherence to a free trade policy that suited old-establish-ed Britain in the pnst. but is rejected by ail the younger countries of the worldV Even in Britain there is a rnpidly-growhif tendency towards a change from the free trade policy of a once powerful political party.—l, am, etc., ■

CHARLES J. WARD.