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Hokitika Guardian, 15 February 1939, Page 4

It is not suggested that all countries are actuated solely by the desire to j meet their overseas creditors when they restrict imports, says the Times’ Trade and Engineering Supplement in discussing the New Zealand import control scheme. They may indeed have fallen under the lure of self-contain-ment. Why should we ne dependent on outside sources for goods that we could make ourselves? they ask. The answer is that there is no reason whatever provided that they are prepared to pay the price which will have to be paid by their own people. It is obvious that j if spades are excluded in the interests | of the industry of spade making and the cost of producing them in the country is greater than the price at which they can be imported, spade users will oe penalised and their standard thereby ieduceu. .If this discrepancy in cost is merely temporary it may be worth while, but that does not alter the fact that the v‘baby” industry is established' at the cast of the community. The same applies to all other articles so that logically it comes to this, that a young country should consider fiscal policy in the light of expediency. It should first ask itself whether it is prudent to attempt a comprehensive policy of self-contain-ment or whether it. would be wiser to protect only such industries as ‘aye necessary to the State or hold out a prospect of being able tc stand aldrie 1 in Fair competition at an early date 1 . 1 We said last month that in cohsidering exports it was relevant to bear iu mind the imports received in return, it is equally necessary to bear in mind that restriction of imports may make it difficult to secure payment for exports. The fundamental principle is that commerce must bring benefit to botil parties or it will inevitably dwindle away. As much is to be fearecl from those who seek unfair advantage for themselves as from those who deliberately determine to damage their neighbours’ commerce. Neither policy is justified, nor* indeed, intelligent. The rehabilitation of the world is dependent not on the restriction of commerce, but on its expansion.