LOWER TARIFF

Gisborne Times, Volume LXXIII, Issue 11831, 12 January 1933, Page 7

LOWER TARIFF

CAN A OJA N BANKER ’S A DA’ ICE. SHOULD CHECK DECLINE IN WORLD TRADE. GOOD OMENS FOR FUTURE. (U.P. \. hy Elec. Tel. Copyright) TORONTO. January PL Sir John Aird. president of Gin Canadian Bank 'of Commerce, addressing the annual meeting of shareholders on Tuesday, called on all nations to make a general reduction of 10 per cedi, in their tariffs as a menus of aiding business to rotu rii.

'Home hold stroke of international action is required to permit of economic progress.”’ said Sir John.. ‘‘l suggest an early reduction ot PI per cent, in every tariff of all countries —a move which should not. seriously disturb the economy of each. hut which might check the decline i n world trade, and lighten the arduous tasks confronting statesmen at the forthcoming Economy Conference' .

Sir John made a vigorous pica against the overthrow of the existing economic structure of Rip world, and against nationalisation of hanking. TTe attributed the trade depression to the con,sequences of the Great AYiar, hut- in recent developments at Lausanne and Ottawa he saw good omens for the future.

Sir .Tolin remarked that advocates of bimetallism and managed currencies found les*‘ oOcomagoTnent now 'than a year ago. Tito return of all 'nations as soon as possible* id i-he gold standard would, in bis view, bo a stop toward stability in international trade*.

"WEAKNESS OF IN FI A 11 OK SCHEMES. Mr. S. IT. Logait, general manager of the bank, re*plie*el to proponents of currency inflation or the linking the Canadian dollar to the pound by an assertion: that the. argument in favour of filch measures overlooked several important considerations. Part," at least, ol the extra premium gained on export ■prices would be wiped lout by a. corresponding rise in 'import prices, which advocates of inflation, had neglected to consider. . There was considerable evidence to show that action of this kind elsewhere bad been a drag on commodify export, prices. Work! markets already were overburdened by supplies of raw materials and food ' products, and were in no condition to withstand further competition from forced exports. Jt could not be said that tbe banks bad precipitated the depression through contraction of credit, as the decline, in bank loans since 1929 was less than that in ‘ the commodity price level and national income.