Greymouth Evening Star. AND BRUNNERTON ADVOCATE. SATURDAY, DECEMBER 4, 1926. TARIFFS AND TRADE

Greymouth Evening Star, 4 December 1926, Page 4

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. SATURDAY, DECEMBER 4, 1926. TARIFFS AND TRADE

Yesterday’s review of the Dominion’s financial and economic position, by Sir George Elliot, chairman of the Bank of New Zealand, was on the whole, optimistic in tone, and there is good reason to believe that he will prove justified. Wool prices are not falling, butter quotations are recovering, and trade in New Zealand, itself, is' flourishing. Sir George’ Elliot uttered some wise words about the Dairy Board’s “control” policy, which should be taken to heart by the members. He recommends the merger of the Meat and Dairy Boards, and if a workable scheme could be evolved, there is no doubt that considerable economies would result. There is no clash of interests between sheepfarmers and the dairymen, and a coalition Board should be able to further the interests of both, without sacrifice to either. A note of warning was uttered by Sir George regardingthe Homeland market. He foresees a. possibility of the demand for New Zealand produce diminishing, owing to supplies from other lands, and to the weakening of the free trade policy hitherto pursued by Britain. Britain is candid about her wishes. She desires that the overseas Dominions should leave

Empire manufactured goods mainly to her, whilst they specialise on primary products. Mr. Bruce, on behalf of Australia, was emphatic in his refusal to accept such a policy, and it is doubtful if any of the Dominions will give a different reply. Self-preservation compels them to attempt to develop their secondary industries, but it must be a generation or two before their own manufactures can meet their home demands. Meanwhile. the

tariff walls in each land get higher, and still comes the demand for greater protection. A preference over the foreigner is certainly given lhe British manufacturer, but that does not alter the fact that the latter has to meet tariff obstacles in the overseas lands, whereas these get practically an open door to -the Homeland for

their products. It is all part of the old controversy Free Trade v. Protection, and answers to the problem are mainly inspired by old-time prejudices. The anomaly of many overseas orders going to the United States which buys little in return, and enforces excessive tariffs against all .foreign goods, does not help the Homeland consumer to buy more and more Empire produce. Most bankers are be-

lieved.to favour free trade as being more benefleial to their own profession, and perhaps Sir George’s references to the tariff were thus influenced. Nevertheless, he must be regarded as one of the country’s leaders in finance and commerce, and comments from one in his prominent position, cannot be dismissed as more propaganda. The Imperial. Conference has changed relations between the Motherland and the Dominions soi far as the acknowledged status of the latter is concerned, a develop-! ment wherein the generosity came mainly from the senior partner in

'the family group. It is now necesy sary for the others to reciprocate in trade and commerce to a greater’ degree than hitherto. New Zealand, it must be admitted, goes far in .this direction, already, but there | is room for expansion. An enquiry is to be held next year regarding 1 the Dominion’s tariff schedules, and it is certain that many requests will be made to increase the handicap to imported goods. Si.r George Elliot pointed out a danger in this to New Zealand’s own exports. Meanwhile, the wave of optimism should be allowed fuller sway. The Dominion has apparently passed through, tile temporary depression, and though the need for careful expenditure exists, purses should not be kept so shut as to make the economic ill true economy would cure. December is a month for spending, owing to the Christmas festivities, and all should help to increase that internal trade upon which all are inter-dependent, and with as little, support of foreign goods as possible.