EXPORT ECONOMY

Evening Post, Volume CXXVIII, Issue 31, 5 August 1939, Page 20

EXPORT ECONOMY

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Commenting on New Zealand's import restrictions, a London paper recently remarked that import restricting was a difficult policy for a country possessing probably: the highest external trade per head in the world. Because New Zealand exports a high value per head, she muse import a high value per, head; so restriction of imports connotes restriction of exports— in other words, it will be difficult for New Zealand to continue to sell to Britain as much as New Zealand now sells, if the amount of the proceeds of) these sales, (brought back to New Zea-j land in the form of imports) is reduced. I Therefore, action to reduce imports alone would be, in the long run, a lopsided policy. But action to reduce both exports and imports—to reduce New Zealand's trade per head of population, by means of an immigration increase of our population, and by means of an increased local manufacture to meet local needs might prove to be a balanced policy. And this is approximately what Roy Gardner, D.Sc, of Dunedin, advocates in the 110 pages essay "The Basis of Prosperity in New Zealand," with a foreword by the Hon. Downie Stewart (published by Coulls, Somerville-, Wilkie, Ltd., Dunedin). Mr. Stewart writes:. "It is not necessary to agree with all Dr. Gardner's views to realise the value of his essay. For example, I cannot myself agree with his statement that the expansion of manufactures in is no way detrimental to farmers' interests. Their long-term, interests may be reconcilable but not necessarily their short-term interests." Obviously, a surplus farm production selling oversea for forty millions sterling cannot shift its market from Britain to New Zealand (even a New Zealand welcoming immigrants) without some bumps. But Dr. Gardner's policy is a long-term, not a short-term, policy. He holds. that internal trade must be vastly increased relatively to external trade. Imports and exports must fall, and a greater proportion of exports must be diverted from buying British imports to paying off our Government debt in Britain. That debt dictates our policy in too great a degree, and Dr. Gardner would not relapse into the old practice of borrowing in Britain, and therefore would not be of much help in Mr. Nash's borrowing efforts. Dr. Gardner's approach to the subject is non-political, and his arguments are worth reading because of their simplicity and lucidity.