SOFTGOODS FEDERATION

Nelson Evening Mail, Volume 79, 18 April 1944, Page 2

SOFTGOODS FEDERATION

EXISTENCE CON si IJERED JUSTIFIED PRESIDENTIAL ADDRESS Wellington, This Day. •1 think it can be claimed that the federation has justified its existence even after one year of operations,’ said the president, Mr D. A. Ewen, at the annual meeting of the New Zealand Wholesale Softgoods Federation in Wellington recently. “As traders we do not like restrictions and regulations and we shall all be profoundly thankful when they can be removed,” said Mr Ewen. “but as sane men we realise that they arc inseparable from present-day war conditions and that the only sensible course is to comply with them to the best of our ability. “One matter I wish to mention is concerned with the discounting of stocks. A deputation, which I had the honour of leading, waited on the Minister of Finance making representations to him with regard to the dangerous situation that traders carrying stocks were being placed in owing to the income tax not allowing them adequately to discount their stocks, except on an income tax paid basis, which on present tax rates is a practical impossibility. As goods arc being bought on a very inflated market and thus liable to fall in value at some future date when peace comes, this risk is an inescapable one. The problem was discussed in all its bearings. and the Minister promised to let us have an answer before he left the country. The answer has not yet been received. "I do not mean by this that in my opinion peace will be followed rapidly by a slump. This is unlikely. Keynes has staled in his currency plan, “If active employment and ample purchasing power can be sustained in the main centres of world trade the problem of surpluses and unwanted exports will largely disappear ’ That is surely almost a truism. The encouraging part, however, is that the Government of the United Kingdom in particular appears to be seized of the important of. this doctrine and working with this end in view. "As prudent men. however, said Mr Ewen, “we cannot forget all the lessons of the past, and we do know two salient facts. (1) There are enormous stores of reserve wool, estimated variously at 1.100,000,0001 b in the U.S . stockpile plus possibly 330,000.0001 b held on behalf of Great Britain. (2) That the change-over from a war to a peacetime economy is not going to be accomplished without many creaks and groans of the entire commercial fabric. "I am one of those who feel that our future still lies with Great Britain and that she will again in peace as in war save herself b ■ her exeftions and the world by her example. "If we are to assume and maintain the position this federation should occupy in the commercial world of New Zealand.” concluded Mr Ewen, “we must make it our first aim to assist those responsible for so doing during this period of stress to carry out their lawful duties, and further use all diligence to suppo.t and observe those regulations which are imposed on us. at the same time using all the influence and ability we possess to ensure that such regulations are wise and workable.”