SEEKING NEW MARKETS.

Northern Advocate, 8 November 1934, Page 7

SEEKING NEW MARKETS.

(To the Editor). Sir, —The Dairy Commission’s report stressed the importance of finding new markets for our dairy produce. Mr Poison, the Dominion President of the Farmers’ Union, is also emphatic on this point, and both receive much support from the press to the move. I would remind those who depend on new markets for a return to prosperity that goods buy goods. New Zealand’s claim to export is governed by our capacity to import, and the latter is affected by the amount of local currency circulated in payment for our products. A fixed local price level, commensurate with production costs of exports, is the only method by which sufficient purchasing power can be liberated to expand trade both ways. If we export to countries other Ijian Britain, we will divert trade now going there, which in turn will reduce imports from Britain. There are many who insist that it is impossible to have a . price level locally, other than that realised on foreign markets. I submit this is being done now, but the level is at starvation point, and while this persists, it is not possible to increase our trade, either with 1 fresh countries or Britain.—l am, etc., F. WOOLHOUSE,