WORLD OF-FINANCE

Evening Post, Volume CIX, Issue 125, 29 May 1930, Page 22

WORLD OF-FINANCE

DOMINION'S PLACE

SIR G. ELLIOT'S VIEWS

INTER-EMPIRE TRADE

■ (From ','Tlie Post's" Representative.) LONDON, 4tli April. '"" . Sir George Elliot (chairman of the !' Bank .of New Zealand) supplies the '* Now-Zealand section of the "Financial .: Timfes Banking; Supplement," publish;V cd1 on "31st March. This is a wonderful -.' publication,- printed in five.languages:. "• After dealing with the subjects of ■ population, production, exports, and Uriv ports, Sir George goes on to say:— v ''There is little demand at-present ".- for bank advances or loans on mort- r ;: gage, while money on deposit with the "•.- various- banking institutions in. accumuv ]ati«g to an embarrassing degree. .; '.' Many reasons have been brought :i forward to account for the present easy ;i monetary conditions existing in New ': Zealand, but the truth,-I- think, lies in : theVfact that at present there is little 1 ? outlet for-.apital in new industrial enl: terprises. Most trades- and industries ;' are over crowded and competition is out . of all.: proportion to the business offer- ■ 7 ing, for few are working to their full ~ capacity; many, burdened by high ex- » penses, are just making both ends meet. '-' "Difficulty in finding investments has - forced the price of local first-class - stocks and shares up to a figure that '•; shows but a small interest return. • As '■' a consequence, public attention has : been turned to local body debentures 1 and Government bonds at rates of interest lower than those ruling in other :;' parts of the world—eloquent testimony ; to our export surplus synchronising with r the halt in industrial expansion. :' GOVERNMENTAL ENTERPRISE. '■'■ "It is pleasing to note," Sir Georgo Elliot goes on to say, "that Sir Josoph • .Ward, as Prime Minister and Minister '. «f Finance, has made it clear that it is ; the intention of the Government to ,: check Governmental interference with ;; business carried on by private enter- •;' prise. It is to be hoped also that in ;• the readjustment of taxation he foro- '.>■ shadows Government and municipal concerns will be required to ■■* pay rates and taxes on a basis similar to those paid by other traders and finan- » cial instintions in the community. ",• "In few countries are Governmental Z and municipal businesses so protected as :" ihose in New Zealand, for munieipali- ;; ties pay neither rates nor taxes, and ;■ both have privileges not enjoyed by-pri- :}, yate traders. " . i■' SOLIDIFYING THE EMPIRE. '' ■: Sir George Elliot speaks with'conviction on the question of inter-Imperial C "I am absolutely certain," ho writes, £■ "that the question of taxing foodstuffs ',; imported into Great Britain from foreign countries must be not only serious- •* 3y considered but actually brought into '*■■ effect before any headway can be made I- in the great task of solidifying the Ein-:-pire into that harmonious economic !? oneness so much to be desired. The im"l' position of a duty on imported foreign T foodstuffs into Great Britain is the key, ■ and I am afraid the only key, to open f the doors for a greater inter-Empire ex- "■ change of goods. Not only would such ■ a duty benefit the various Dominions '-' and Crown Colonies, but it would have ■<■ a hiekly beneficial effect on the welfare ::: and well-being of the farming industry '; within the United Kingdom, and he :" would be an optimist indeed who would '■'1 say that British farmers need no assist'y. ance at the present time. . . > "The effect on the cost of living m - Great Britain by the institution of a ■ small Customs duty on foodstuffs has :■ become much exaggerated in the minds of a section of the people. It is doubtful if there would be any increase at all, but even if there were a slight increase that, I feel sure, would be more than offset by a greater measure of em- ■• ployment on the one hand, and by a re- ' duction of -verhead expenses on the '•■ other, a reduction that naturally follows '•' a greater volume of business. "World conditions have materially . changed since the days of Bright and k Cobden. It will be calamitious if we ■; continue inertly to allow pur vast confederated Empire to be, exploited by ;• foreign rivals, who, under present con- "; ditions, are reaping a harvest they have - not sown. '■• "These remarks on foodstuffs are',to - a degree also applicable to Empire- ~ grown raw materials.' ' SUBJECT FOR IMPERIAL CONFER- ;;' ' . . ENCE. . i' . ; "The matter is of such vital import- ' ance for the material well-being of the i whole Empire that the subject should • be placed in the forefront of. tho order ■ paper for serious discussion at tho next Imperial Conference to be held in Loni don during the year. The time is ripe : now for readjustments throughout this ; great Commonwealth of Nations, and undue.delas's may bo'dangerous. "At present free trade between the ■ Motherland and the outlying Dominions, ' however desirable, seems impracticable, " but an immediate aiid intelligent adjust- '-. jnent of Customs tariffs, giving to each | 'separate unit a certain measure of protection against foreign trade aggres^ sion, would, I think, go.far towards making this, great Community of Nations a still" more united and prosperous Empire." ,