EMPIRE ECONOMICS

New Zealand Herald, Volume LXIX, Issue 21297, 26 September 1932, Page 9

EMPIRE ECONOMICS

NEW ZEALAND'S POSITION MR. STEWART'S OPTIMISM OTTAWA'S GOOD RESULTS By Telegraph—Press Association—Copyright" LONDON, Sept. 23 The New Zealand Minister of Finance, Mr. W. Downie Stewart, in replying to a toast proposed by Sir Thomas Wilford, at the New Zealand Society's luncheon at the Savoy Hotel, in the presence of 200 New Zeaianders and others, said overseas trade was the life-blood both of New Zealand and Britain.

The value of New Zealand's exports had fallen 40 per cent in the past two seasons, notwithstanding an increased quantity of exports in most of the staple products, but tbe decline was less than the world average, while the constriction of imports was greater than the world average.

Mr. Stewart reviewed the effect of the depression on the national finances, and described the equality of sacrifice with which economies had been achieved. New Zealand, ho said, was still battling in the face of the storm, against heavy unemployment, low prices and high taxation, but there were signs of recovery, including a great improvement in the trade balance. The banking position was sound, and the customs revenue recently had risen substantially. Lower Dominion Deficit Likely There had been a slight rise in world prices for New Zealand's staple exports, and unemployment tended to fall. There was also a distinct note of optimism throughout New Zealand, and Mr. Stewart said he expected the forthcoming Budget to show a substantially lower deficit.

The Dominion was grateful for the advice and assistance of the British Government and London financial representatives in troublous times. "They appreciated our difficulties and refrained from reproaching us for our borrowing of the past," he remarked.

Air. Stewart paid a tribute to Britain's courage and tenacity in her crisis, which, he said, was an inspiring example to New Zealand.

Mr. J. H. Thomas. Dominions Secretary, in proposing the health of Sir Thomas Wilford, said it was widely reported that the Ottawa agreements would lead to serious political consequences. '* I can only say, as one of those responsible fCV tho agreements, that we do not need to apologise for them," said Mr. Thomas. " I much prefer Britain to be accused of generosity than of niggardliness to the Dominions, who came to the aid of Britain in 1914." Mr. Thomas described Mr. Stewart's speech as a " bull " point for the Stock Exchange, and paid a tribute to his mental conquest over physical martyrdom, also his far-sighted, skilful' and unselfish attitude at Ottawa.

Mr. Thomas, apparently appealing to the Liberals to remain in the Cabinet, said: "A year ago some of the Labour members of the Cabinet subordinated party to the nation at a grave period which to-day is not less grave. There is now still less justification for a split involving Empire policy. " How could we have faced the World Economic Conference if Ottawa had failed, and the other Powers taunted us with the accusation of being unable to agree among ourselves ? If the Dominions crash what hope remains for the surplus population of Britain, for which the Dominions constitute a natural outlet?" MEAT FOR BRITAIN RESTRICTIONS ON FOREIGN PUBLICATION OCTOBER 13 SYDNEY. Sept. 24 Mr. H. S. Gullett, Federal Minister of Trade and Customs, in the course of an interview on the Ottawa Conference, said that October 13 had been fixed by arrangement with the British Government for announcing the tariff concessions which Australia would make on British manufactured goods. Simultaneously an announcement would be made of the restrictions which Britain had agreed to impose upon tho imports of meat from Argentina.