The Matamata Record PUBLISHED MONDAY AND THURSDAY THURSDAY, JULY 27, 1933. THE IRONY OF FATE.

Matamata Record, Volume XVI, Issue 1445, 27 July 1933, Page 4

The Matamata Record PUBLISHED MONDAY AND THURSDAY THURSDAY, JULY 27, 1933. THE IRONY OF FATE.

IT is the irony of fate that the World Economic Conference to which New Zealand looked forward so keenly and from which it hoped so much may prove for the Dominion a disappointing' failure. The delegation that left New Zealand has now to discuss and endeavour to prevent being put into operation proposals to restrict the volume of New Zealand exports. The suggestions for a quota make very unpleasant reading to the farming community. It is not to be wondered at that their representatives have vehemently protested against such action. But because it is an anxious and critical moment there is the greater need for careful thinking and considered counsel. Protestation by itself will avail little. To cable to the Prime Minister “that the existence of the Dominion’s primary industry depends on free entry to the markets of the United Kingdom ” is only to tell him something which he and his colleague, the Hon. R. Masters, are fully aware of. The truth, unfortunately in this case, will not help matters. If it could be added “ and will benefit the British public ” and reasons assigned then service might be rendered. The fact must be faced that there is evidence that the British public generally has accepted and approved the principle of rationing imports. The British Minister for Agriculture has said “ quotas have come to stay.” The farmers of New Zealand desire free entry; the farmers of Great Britain demand protection. It may be all very wrong from our point of view, but can we alter it? If not, and the quota system has to be accepted, what is to be done to make

I the best of a dangerous situation? . That is a problem to which up to the ) present too little thought has been , given. It does not imply that every effort should not be made to pre- ’ vent the application of the quota system to New Zealand, but there should be realisation that provision to meet the situation should be made. In the course of an article on the subject the Christchurch Press puts the points very clearly: “ The wise course for New Zealand and for the other Dominions is, not to attack the quota system as such, but to try to prevent its misuse. If the system is designed merely to ensure more orderly marketing and to assist in stabilising prices, then it may do more good than harm. If, however, it is designed to raise prices by restricting supply it can only be mischievous. Unfortunately there is reason to suppose that the British Government is adopting

the quota system without any attempt to increase the purchasing power of the British people. A policy of quotas plus deflation means the final frustration of the hopes aroused at Ottawa; and it will mean, for some Dominions, unwilling recourse to import restrictions and perhaps in the long run inability to carry on the service of external debts. It is difficult to believe, however, that the British Government has -deliberately embarked on a course which will be as harmful to British consumers as to Dominion producers.”