EMPIRE TASKS

Evening Post, Volume CX, Issue 45, 21 August 1930, Page 18

EMPIRE TASKS

ECONOMIC INTEREST

IMPORTANCE OF CONFERENCE

(To the Editor.)

Sir,—A' very ..careful study of the speeches made in the House of Representatives on the subject of the Imperial Conference has made it become increasingly plain that the significance of the approaching Conference is not yet fully recognised, either i the House or by the general public outside. In a very real sense this Imperial Conference; is likely to be one of momentous seriousness iii regard both to the continuity of the British Empire as an economic political force aiid so far as the immediate and future prosperity of this Dominion is concerned. First aud last so far as its practical side is concerned this meeting of the Premiers of the seltgoverning Dominions is one where the discussion of future . business relationships alone really matters. The people of both Britain and New Zealand are determined to get-down- to-discussing and co-ordinat-ing facts of trade relationships and development. In order that the circumstances may be appreciated it is -'first of all necessary to understand something of the atmosphere existing at Home to-day. Loss of orders through the closing of traditional markets through the raising ol tariff walls -by foreign countries has resulted in unparalleled unemployment in practically everyone of those main industries on which pre-war the prosperity of Britain depended. Nowhere is this more marked than in the Midlands and North of England. - This has given rise to wholesale and widespread unemployment, and the result is that the electors who aforetime were protagonists of the Manchester and Cobden theories'of free trade are to-day the loudest in their demand for "safeguarding" or. V'Pro';ect' on'" ">■ Other words a complete vindication of the policy enumerated'by Joseph Chamberlain has occurred. More significant 'still, on sth July, the leading bankers of Great Britain definitely/subscribed their names te a manifesto advocating safeguarding as ' a national policy and eeonomio defence. •Twenty-three famous bankers endorsed this complete renunciation of the traditional free trade policy of the English banks. Six weeks ago the Right Hon. Stanley Baldwin' adopted the following resolution ■as the policy of the Conservative Party, which he will move at an early date in the House of Commons. It reads: "That this House, believing that a return to prosperity can best be promoted by safe-i guarding the Home market against unfair foreign competition, and by expanding the export market by reciprocal trade agreements with, the Empire overseas, regret that the Government has reversed the policy of safeguarding instead of extending it, and has arbitrarily excluded from consideration the imposition of duties upon foreign foodstuffs devised to obtain equivalent advantages for British manufactures and agriculture in Empire markets and 'elsewhere." Preceding this expression of policy for nearly twelve months noW a vast organisation has been at work moulding and educating public opinion to the duty of concentrating the whole of Bri- ■ tain's energies on .the necessity of de-i • veloping the Empire as a social and economic entity. The Press controlled by .Lord Rothermere and Lord Beaverbrook and read by over 50 per cent, of the electors of England and Wales, has daily without ceasing carried on an intensive effort to lay before the public of Great Britain adequate reasons why only by Empire expansion can the well-being of the Home population be secured.. The services of eminent men have been retained ■to tour the' country in order to lecture upon and explain the workings of "safeguarding", and to prove the fallacy of the, century-old and outgrown fear of dear food, Sir James Parr, a New Zealandor born and an ex-Cabinet Minister, is one of the foremost exponents of the new ideal. His loyalty to New Zealand's best interests can surely be accepted as being above suspicion. We may honestly conclude then that the people of Great Britain now realise that the economic relationships between herself and the Dominions require to be adjusted on a practical basis. While there is the feeling among the primary producers of New Zealand "that there does not exist an equality of purchasing basis, indications show that inter-Empire relationships are unlikely to develop on terms which will be considered to »be really satisfactory to the people of this Dominion, While the comparative export and import figures between the two countries show a heavy indebtedness to Great Britain, this affords no consola- • tion to the New Zealand primary producer, who has experienced a : progressively declining price for his products. :, He not iunnaturally complains that Great Britain compels him to sell his products on a world parity- and that in exchange the Dominion sells her inarmfactured goods here on an increased return to the one

she receives in other non-protcctd markets;' These are the vital factors that at this Conference demand most serious attention. . >

The issues at, stake are momentous ones, and yet these issues have not yet been seriously considered by-Parliament. The facts cannot be avoided, and it is necessary that; New Zealand's representatives should be given a definite policy to carry into effect. New Zealand looks to hor future as a nation of primary producers, for which her soil, climate, and rainfall have endowed her, and as such can become a factor in the world. Is it possible that politics have obscured the real issues of national necessity? The whole of England has been stirred to tho core over_ the subject. Had such a situation to be faced in America, convention after convention would have beenvheld in every city and town .throughout the laud in order to crystalise' a national policy. No clearly defined national policy on the subject has been stated here. The primary producers of the Dominion arc rightly asking for a statement. They ask whether, definitely, our Customs tariff is to'be used as a basis for the protection and increased prosper! ty »f the "farmer. They say that national prosperity is first of all involved, and unless the well-being of the primary producer is made the first duty of the State all 'other endeavour must inevitably languish. ' The last Imperial Conference clearly defined the status of the Dominion Premiers at future conferences. They attend as" equals and as partners in a great enterprise. It is'very simple. They have every right^-and' other Dominions .have already announced their intention—to go there not to listen but to state their requirements. What is to be the attitude the representatives of this Dominion? To date the Premier does not appear to have given ahy' precise announcement ou this matter, neither has "Parliament given him a mandate to carry out. ■ On the agenda of subjects submitted to Parliament as those on which discussion should be held, figures the heading "bulk purchase." So far as practical commerce is concerned, this appears to be a very obvious "red herring." That this Socialistic jdeal can be other than of pure academical interest is difiieult to believe. In the present endeavour of the community to free commerce from State interference it would apparently require a very credulous mind to believe that any British Govern- ' ment .would dare to attempt to foist such i'an imposition on the delicate fabric of the peace-time system of distribution which I English traders have evolved. Pressure on Ramsay Mac Donald from his extremists could alone have caused the inclusion ot this emblem of parlour economics, Although Great Britain and New Zealand are bound together politically, economically, and racially, nevertheless this does not allow of breaking tho laws ot the exchange of commodities as is suggested by the formula "bulk purchase." Price is a constantly fluctuating ratio affected by seasons, climate, and world demand. Although, desirable, exact stabilisation is -not possible, but a computation to compensate for tariff benefits extended by New Zealand is arrangeablc only by Great Britain levying an import duty on competitive lines offering by foreign countries—Denmark, for* instance—not being purchasers of British manufactured products. The solution to the problem can thus come about .by the adaption of existing procedure, which', is exemplified by the arrangement of mutually preferential tariffs The substitution by Britain of New Zealand wool, .beef, c and dairy products for those of other countries would provide higher wages in that it would tend to equalise, the same higher standard of living based on the . equation ...labour, hours, wages existing in the Dominion through the purchase of English-made goods. Conditions -would progressively improve. In 1924 out of a total of British produce and manufactures"amounting to £795 millions the Empire absorbed £332 millions, or 41.75 per cent. By adjustment of tariffit is possible to vastly increase these: amounts just as It is alsO possible to increase Great Britain's-purchases of "Colonial products." It must be recognised, however, that in neither - case can - the: mutual purchase by Great Britain or this Dominion of each other's products happen spontaneously through individual demand, as without.the erection of tariff barriers, which are the instinctive defence of economic self-preservation,' the nation with the lower standard of.living or possessing greater mobilised wealth will always be j able to. undersell on a free market and] thus depress the standard of living of the j "workers. -'■■;■'•■

The , primary producers and the great financial, institutions of this country arc not immediately c6_cerned*K'itli how Great Britain- will give: feffect to' their demands. It is for the Home Government to work out a financial -quid pro quo-which Will be acceptable to the Dominion. Sir George Elliot, in his''speech, at the last annual general meeting of, the Bank of New Zealand, apropps Of" his advocacy of practical reciprocity/said: "The assured market that such protection: would provide would be of inestimable advantage to the .colonies, and would" so stimulate production that

in a short period o£ time prices would probably reach levels tending- to reduce rather than increase the cost of living iv Britain." It would be-very interesting to .learn whether members of Parliament representing country constituencies have yet sought the views of their electors on tho matter of New Zealand's attitude at tho Imperial Conference or what explanations they intend to make. —I am, etc., CONRAD B. LOCHNER. Auckland.