CAUSING CONFUSION

Evening Post, Volume CXXVII, Issue 8, 11 January 1939, Page 8

CAUSING CONFUSION

"They are still guessing, and they will go on guessing," said the Minister of Customs (Mr. Nash) yesterday, when his attention was drawn to a list of British goods which, it was suggested, had been placed on the banned or semibanned list under the import control regulations. At the same time Mr. Nash said he did not intend at present to issue a public statement giving traders the information they desired regarding the basis on which the Government was working. While there may be a small ray of hope in the Minister's use of the words "at present," it is regrettably clear that in the meantime the commercial world will have to flounder along as best it can. That inevitably must lead to more and more guessing, and the Government will have no one but itself to blame if the criticism and the confusion assume proportions which may not be justified by the Government's intentions. ' It seems so clear that the proper and reasonable course is to give importers the information they desire in order to conduct their businesses with some degree of certainty that the continued refusal of Mr. Nash is difficult'to understand.

Mr. Savage claimed last night that "the clearest statement one could put into words" had been made when the scheme was first announced. He added:

That was that we are to make a proper selection of the things we need to take from abroad. There was nothing said about restriction. We said we were going to give preference to those who were giving preference to us—that is, that we would buy where we were selling.

To the Prime Minister that may appear as a clear statement of Government policy, but to the importer, whose future livelihood is at stake, it is in such general terms as to help him not one whit in finding a way out of the import selection maze. And, in any case, statements made by importers since the licences were issued rather suggest that Mr. Savage's hopes for his policy of insulation are not quite being fulfilled, although, of course, that impression may be entirely due to the necessity for "guessing and going on guessing." One other question suggests itself. Was Mr. Nash, in devising the import restriction reguliations, primarily concerned with imports as such or was he merely concerned in an endeavour to meet the effects of a serious economic difficulty brought about by the shrinkage of exchange funds? An answer to that question might go some of the way in clearing up the confusion which is having such a serious effect on business at the present time. On this point there has been a marked divergence between the statements of the Prime Minister and the Minister of Finance. Mr. Savage has emphasised "insulation" and selective importing; Mr. Nash has .said more about sterling funds. It is the uncertainty arising from the doubt as to how far the Government intends to go that is contributing to uneasiness. If the measure were solely for sterling conservation everybody would agree that it must be faced, though the Government would still be unable to persuade the critics of its blamelessness in the matter of causes. But when it is suggested -that exchange control is part of a permanent policy there is reason for anxiety. A tariff is more or less elastic; it permits goods to enter when the demand becomes urgent and market needs can be met at a price. But selective importing, far from being simpler, is much more complicated and more rigid. If the Government would reassure trade and industry on this point it would greatly reduce uneasiness. If it would go further and leave the allotment of available] credit funds to the trading banks, as' was done in 1931, after assuring that the Government has the necessary sterling for debt and other commit-' ments, trade and industry might more quickly be brought as near to normal as is possible in the meantime. A complete remedy cannot be effected until the Government financial policy is revised; but "guessing" only makes the position worse.