TARIFF BARRIERS

Hawke's Bay Tribune, Volume XXIII, Issue 81, 17 March 1933, Page 7

TARIFF BARRIERS

UNDERSTANDING NEEDED. POSSIBILITIES FOR. WOOL. “Although America may have set a bad example initially, every nation has now set up high tariff walls and hidden behind them, with the result that no business is being done.” This statement was made by Mr J. David Larson, secretary of the Los Angeles Chamber of Commerce, who has been touring Australia in the interests of business between the two countries, and who arrived at Auckland by the Mariposa. He intends spending a month in New Zealand with a view to promoting good will in trade between the United States and New Zealand. “What is necessary throughout the nations,” Mr Larsen said, “is a more common-sense adjustment of tariffs generally. We cannot upset the economic picture all of a sudden, but something concrete is necessary, and it is pleasing to note that a great deal more study is being given to this subject at the present time than ever before.” Mr Larson, in discussing trade reciprocity between the United States and Australia, said that he had ascertained that there were a number of commodities which he considered Australia could supply to America. For instance, it appeared from the low price at which shoes were selling in the Commonwealth, and the high cost of labour, that leather was cheap, and could be exported at reasonable prices. On the other hand, citrus fruit and wheat were not wanted. He was interested in the woo] position, and could not understand why so much wool produced either in Australia or. New Zealand was sold to America through England. In 1931 the United States purchased 60,000,0001 b. of wool, of which 40,000,0001 b. came from England, 75 per cent, of which was produced either in Australia or New Zealand. The other ‘20,000,000ib. was imported direct from this hemisphere. Mr Larson expressed the view that there was room for inquiry with a view to seeing whether it was not possible for a much larger quantify of wool to bo bought direct from-New Zealand. In discussing tariff' barriers, Mr Larson quoted figures to show that the United States had hot erected the highest walls. Forty basic commodities of the United States, including cotton and coffee, averaged 65.2 tariff charge, while in Australia for the same commodities the tariff charge averaged 132.7. It was questionable whether the Australian people really benefited from the high protective tariff for some industries, owing to the limited population. It might be that the people were paying for the tariff walls. The large populations of the American States made the position totally different, as they had the people to consume what was manufactured. Referring to the exchange rate, which had been detrimental to America’s overseas trade, Mr Larson said the solution was through better mutual understanding between the nations. It was essential that Great Britain and America should work in harmony, for the whole economic structure of the world depende<L-on -ifeh® JEnglish-speak-