PRICE DEPRESSION
SURPLUS OF PRODUCTION TAX IFF COMPLICATIONS (By Telegraph.) (Special to "The Evening Post.") AUCKLAND, This Day. "Although there may be not much cause for optimism about the present state of world trade, the future can bo viewed, with -much greater confidence in New Zealand than Australia," said Sir Lcnnonßaws, managing director for Imperial Chemical -Industries in Australia and ISTew. Zealand, who is return"-j ing by the. Aorangi from a visit to London.
"Australia," he said, "has handicapped herself by past extravagance, but the way to-, prosperity is . clearly defined. .In Now' Zealand the position should.be much easier because of the lesson of 19221
"The general.decline iv commodity prices is' raising; doubts- about efficacy of the 'gold standard," said Sir Lcnnon. "It is estimated that on 30th Jmio last 55 per cent, of the world's gold was held by the United States and France, and in certain quarters this concentration is held responsible for the fall iv prices. As France is still hungry for gold a further decline is forecasted. "The most striking.thing in England is the movement towards protection," declares Sir Lennon. "It is disguised as Empire free trade, but protection of the homo market is the real objective. England seems to have abandoned hope of ■' regaining her position in foreign trade,, but. as she is still of necessity a large importer of foodstuffs and raw materials it is difficult to see how she will be able to balance her trade if she imposes on her export industries the Handicap, of higher costs through protection'; Advocates in. England1 of Empire .free .trade have overlooked the natural desire of the Dominions <to establish ' secondary industries of their, own. Speaking generally, the world problem seems to be that of the surplus. Almos.t every country has increased its output in industry and agriculture- at- a greater rate than its consumption has increased, partly hy improvements in technique and party by artificial stimulants. The policy of trying to maintain high internal prices through tariffs' and 'other' moans and of dumping the surplus abroad is leading, to retaliation .and endless complications."
PRICE DEPRESSION
Evening Post, Volume CX, Issue 86, 8 October 1930, Page 18
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