Sane Tariffs

Manawatu Times, Volume LV, Issue 6747, 4 January 1932, Page 7

Sane Tariffs

Issue lust be Solved TRADE BEING STRANGLED British Official Wireless. RUGBY, Jan. 1. Striking observations upon world economic problems were mado by Sir Walter Layton, tho prominent economist, in addressing Anglo-French students in London to-day. Sir Walter Layton emphasised the danger of hampering international trado by tariff barriers, and declared that whilo gold was usual for settling small dealings, it was in effect, merely spare cash in the till and could not settle indebtedness between nations engaged in lending or supplying large quantities of goods ono to the other. Some solution of the tariff issue, which was getting worse, must bo found. The financial crisis had aggravated it, .for there were in. many countries not only tariffs, but absolute strangle-holds on trade through exchange control. Every conceivable devico was being operated in each country in trying to savo itself, but in the meantime is was strangling its neighbour. Tho world's commerce was down to something like half its volume of two years ago. Unexpected Results Tariffs had played havoc with capita and had produced quite unexpected results regarding the payment of debts and reparations. They could have been paid in goods but were not, and had 'produced great movements of gold and resultant chaos. Sir Walter Layton said that the gold standard, from which other countries might have to depart before very long, could not, be reinstated until the reparations problem was regularised in such a way that any reparation paid was paid in gold. That meant that there must bo some sanity in tariff questions. ‘‘Tho key may be that wo will have to form a group of countries which have a common understanding in regard to their money and at tho same time have an understanding in regard to what is a sensible tariff policy,” ho said. “It docs not mean that every country has to bo free trade. At present we have to aim at a group of sane tariff countries.” Must Come Down LESSON OF AUSTRALIA LONDON, Jan. 1. The Manchester Guardian, editorially writing, says: “Free trade cannot be obtained by joining hands with tho protectionists. The Liberals hero and the Country Party in Australia are learning that lesson. Simultaneously Dr. Earle Page has mado it plain to Mr. Lyons that a downward revision of tariffs is essential in the Country Party’s eyes, and Customs was one post in the Ministry worth holding. Mr. Lyons, not. without, humour, proffered him the Post Office. This contemptuous dismissal of the party’s claims has driven the Country Party supporters clean out, of the Government. Ono cannot watch Mr. Lyons working without a small shudder to think what our Cabinet might have been like if Mr. MacDonald had not chosen it.” Trade Depression ILLUMINATING FIGURES LONDON, Jan. 1. A bankers’ clearing house return strikingly illustrates the acuteness of the trade depression in the resriction of financial operations. In 1931 the cheques, bills, etc., cleared amounted to £3(5,235,869,000, a reduction of 16. S per cent, compared with 1930, and the smallest total since 192.1,