TOPICS OF THE DAY

Evening Post, Volume CIX, Issue 33, 8 February 1930, Page 8

TOPICS OF THE DAY

Another optimist is in the field. Mr. James MacDougall, president of the Victorian Chamber {of Manufacturers, states that if the Federal Government will give the delegation its official blessing the Associated Chambers of Manufactures of Australia are prepared to send a party to New Zealand to study commercial conditions there, and endeavour to remove the misunderstandings which exist between the/ two countries. Mr. MacDougall thinks it most unfortunate that two countries so close geographically should be so far asunder politically and commercially. He desires an economic Anzac. No doubt it is unfortunate that there should be economic conflict, but how is it to be avoided ? Ministers of Customs and Ministers of Industries and Commerce have tried to remove the differences, but without complete success. Sooner or later their discussions have come to a stop on the political issue. It has been like the story of the rustic socialist who agreed that if he had two horses or two cows he would share with his neighbour who had none. "And two pigs?" suggested the questioner. "What are you talking about?—l've got two pigs.!' So long as the.talk has been kept on general and theoretical lines, Ministers have^ been able to agree on the benefits to be derived from increased trade, but inevitably the time has come when the Australian Minister has had to object: "What are you suggesting?—we grow potatoes," or the New Zealand Minister has felt bound to say: "Yes, I understand the theory and you understand the theory—but the wheatgrower, will he understand the theory?" Governments are disposed to be tender to wheatgrowers and others who have limited knowledge of theories, but a close acquaintance with practice—especially voting practice. When the United Party was not the Government, it made, a brave show against the wheat and flour duties, but when faced with the practical issue it was as valiant as Falstaff. . Why, thou knowest I am as valiant as Hercules; but beware instinct; the lion will not touch the true prince. Instinct is a great matter; I was a coward on instinct. This instinct, or perhaps the instinct of self-preservation, inheres in Governments. They are quick to recognise the "true prince." So well-or-ganised sections control tariff policies. If the consumer were more in-

sistent he might be recognised, too, but he is not so insistent. Until the Australian and New Zealand Governments can be persuaded to take a wider view of the trade possibilities there is little hape of agreement. Certainly, there is yoom for a better understanding, But it cannot be reached without a measure of sacrifice on both sides.. Probably both Governments see what can be offered, but they shrinfc from the task of dragging ail unwilling and kicking sacrifice to the altar. It might kick several seats on to the Opposition side of the House. Without a firm demand from the consumer (who must pay for the failure in reciprocal trading) a Chamber of Manufactures can expect little more success than has attended the efforts of other persons arid organisations. Still, a Chamber of Manufactures might help, to arouse .public opinion by setting forth clearly the cost of the present policy- ■'■•■".

Public control of marketing was applied in wartime, but it was far from being a complete success. It was necessary in order to meet war necessities to mitigate the hardships entailed by disturbance of ordinary shipping arrangements, and to assure uninterrupted supplies for the armies in tile, field. But it cannot be held that it demonstrated the economic benefit derivable from a similar system in peace lime. It failed to show how the price payable to the producer could be fixed with perfect fairness to the consumer in the absence of marketing competition. Subsequent experiments in private control, under authority vested in producers' organisations, have not met with approval. It will be surprising, then, if the negotiations between Mr. Fenton, Australian Minister of Customs, and Mr. Snowden, British Chancellor of the Exchequer, result in the production of a,perfect control plan. The aim, it is said, is to ensure higher prices for the Australian producer, and lower prices for British consumers, by "reducing the number of middlemen and by a substantial decrease' in handling costs. The middleman has always been the point of attack. In Labour theory (and often in the mind, of the producer) he serves no useful purpose. But the fact remains that attempts to eliminate the middleman have shown that his services are necessary in the determination of prices and the regulation of distribution. If Government agencies arc substituted we have no guarantee that these services will be more efficient; ly and cheaply performed and with greater satisfaction to producers and consumers. Theoretically, Government control may appear the perfect system, but in an imperfect world it will encounter great practical diffi-

cullies,