PROTECTION

Evening Post, Issue 29, 4 February 1935, Page 12

PROTECTION

BRITAIN'S POLICY

THE DANGERS AHEAD

Britain's changed policy—protection of its own ' primary producers against the competition of the world—was discussed by Mr. Harold G. Brown when he presided at the fortieth annual general meeting of the New Zealand Loan and Mercantile Agency Co., Ltd., in London. Within recent years," he said, "the traditional policy of this country, followed for the best part of a century has been materially changed, and it is difficult yet to see where, these changes will lead us. Until a few years ago this country accepted commodities, both primary and manufactured, without let or hindrance from all parts of the world, and, small though the extent of our territory was, we were the recognised market for a large part of the surplus produce of the world and the recognised clearing house tor. international payments. Our own farmers and industrialists had been brought up to understand that it was their job to adjust their businesses to meet any competition, however unfair, and that they could not expect any protection from our Government; • "That is a thing of the? past. It is now the recognised policy" of this country, stated broadly, to look after our own producers, primary and secondary, first. Air though the measure of protection afforded is still, in some cases, small when compared' with corresponding provisions in other "countries,, including our own Dominions; history shows that once a policy of this sort has been adopted it is extremely difficult to go back, and that the tendency all the time is to increase, rather than reduce, the measure of protection so afforded.

"It is not for the chairman of this company, as such, to say whether such a policy is wise or not, but there can be no doubt that this change may very seriously affect our business and other businesses of a similar character, and we must endeavour to adjust ourselves to circumstances, as I do not- think we can, count upon , a return to the old conditions, at any rate for a number of years to come.

"Unfortunately there are growing signs which show that this change in the policy of our country may not only affect our business but may also seriously complicate relations as between the ■' Commonwealth and Dominion authorities and our own Government.'

"In view of their own past history, it would be difficult for the peoples of Australia'arid New Zealand to question the right of any country to endeavour to protect its'own producers, and I think that they must admit that the home Government is entitled to place the interests of farmers in this country first, but they will claim, and do claim, that the Empire producer should have the first cut._ at the remainder of the joint. As chairman of the company I hope that the oversea authorities may succeed in convincing our Government, that their arguments are Bound, but, as an individual, I cannot help speculating how countries like Denmark and the Argentine are to fulfil their obligations to investors in this country if they are merely offered such scraps of the joint as may ,be left after satisfying the appetites of the Mother Country and her Daughter States. This difficulty niay not be one of moment to the oversea authorities and peoples, but it is obviously one •which politicians and economists in this country cannot ignore, as it is a matter of very vital interest to a large number of investors in this country. "There can be little doubt that the. capacity of the farmers in this country to produce perishable "foods/ such as •lutter,' eggs, and meat, can, under _ a Bystem of protection and remunerative prices, be enormously increased. It is therefore; impossible to rule out of- our calculations the possibility of restriction being imposed and gradually increased on 'the importation of these articles,, even from tha Dominions. In existing world conditions it is difficult to see where the surplus of these products will be marketed or what may be the effect on our clients if production has to be seriously curtailed. It is easy to say, as many liave already said, that the only sound and lasting solution of the difficulty is to increase the size of the joint—in other words, the capacity of consumers the 'world over to consume. Those responsible for the Government of this country may be pardoned if they hesitate to adopt many- of the schemes which we are assured would quickly cure the glut of commodities and almost by a wave of the wand bring effective demand up to capacity to supply. The result of a mistake or miscalculation on the part of these mncicians ; n a highly-industrialised country like ours is too horrible to contemplate,- and would make the present lot of our. unemployed, bad as it is, seem like heaven itself."