The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, APRIL 27, 1939. IMPORT CONTROL.

Hokitika Guardian, 27 April 1939, Page 4

The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, APRIL 27, 1939. IMPORT CONTROL.

TftEf second application cf import control is more drastic and serious than the first. The Minister indicates that the curtailment is unavoidable, but there is a wide difference of opinion as to whether the course taken is the least harmful action which might be pursued. The effect will be felt within and without the Dominion, and the complaints will be numerous. The tirst measure of control came in in Decmber last, caused by the serious shortage of oversea funds ' to meet commitments. The Government had followed an active policy, and the effect was evidently not foreseen, though the result was not all chargeable to Government expenditure. Imports had been heavy, and export commodity prices below the previous year. To add to that there had been reports of a flight of capital due to rising taxation and restrictions. O’n the other side of the question is the fact that Government has set itself against borrowing in London, a step which could have eased the position though not solved it. The experience under the .first import control has. not. been. effective in building up exchange at Home. The imports have still been heavy, due to orders placed in advance of /eointipl, pvhifie commodity prices are still ruling low, and dairy produce under the guaranteed price is building up a substantial debit. No doubt the best Mr Nash and his advisers could do in avoiding the importation of goods which can be produced or manufactured in the Dominion, has been done, but there will be serious repercussions in many ways. The heavy cut-in imports must affect shipping and ultimately freights, and perhaps the excellent steam service this country enjoys. Customs returns must fall, and work will be scarcer on the wharves and with transhipments.VAll this 'will be h heavy impost, arid throws a great responsibility on the Government responsible for such a policy. 'There will, too, be individual complaint about the cutting out of many popular classes of sup- . plies which are no% produced in the country. So-called luxuries, the consumption of which has not been without advantage in the general course of national life. Existing importers will find much of their business disappear as stocks run out, and in certain walks employment will be affected. On the other hand, local manufacturers, should find production greater and probably require more labom. But ,as between the two, there will he a period of dislocation while matters adjust themselves, which will he difficult for many. It is true some firms may he able to arrange finance without the help of Dominion oversea funds. Some oversea manufacturers may arrange a plan to that end w hi oh would be helpful, but the general outlook for the time being is not promising. In.this matter there is likely to ■be ,a severe test to the policy pursued because at the outset, till adjustments are possible, many will be hit, and the victims are not likely to be happy about the Experience. Approaching the centennial too, it is not too pleas-

ant a prospect, but ere tlie celebrations are due it is to be hoped matters may take a more hopeful turn. The lifting of commodity exports or a temporary borrowing policy would alike be helpful. With so mue\ at stake it is to be expected the Finance Minister will meet the situation as favourably as possible.