SURVEY OF OTTAWA

New Zealand Herald, Volume LXIX, Issue 21326, 29 October 1932, Page 10

SURVEY OF OTTAWA

MK. COATES' SPEECH importance of decisions foundation for future [BY TELEGRAPH —SPECIAL REPORTER] PUKEKOHE, Friday An enthusiastic gathering of residents of the Pukekoho district welcomed the Rt. Hon. J. G. Coates this evening and listened to his address on the Ottawa Conference, The Mayor, Mr. John Routley,- presided, and Mr. J. N. Massey, M.l\, was also present. " The reason I accepted the invitation to Pukekohe," said Mr. Coates, "is that the people of Pukekohe always welcome me, and because so often on his return from Empire Conferences, Mr. Massey was in the habit cf coming here to address his constituents." The discussions at Ottawa were interesting not only to the Empire, but also to tlie world as a whole. 1' mm the time the delegates embarked, they set to work to survey the situation. They all realised that just as they improved the conditions of the Empire they improved the conditions of everyone in New Zealand. It was a question of frankly understanding the problems of each Dominion. Widespread Depression The general circumstances in New Zealand were no different from those in other Dominions. The depression was deep and widespread, and it was clear that the remedy was beyond the single-handed effort of any single nation. A lot had been heard about disarmament, but they must try commercial disarmament. "The real question we faced all the time was that unless we could sell in Empire markets there was no hope for the Empire." said Mr. Coates. Delegates also realised that they must not do anything at Ottawa to impede world trade. If they attempted to follow a self-suffi-cient policy, they would isolate themselves from the world. All the delegates were imbued with the thought that the conference must not fail, and they knew that failure would be a blow to Empire prestige. New Zealand was unique in that it had representatives of producers and manufacturers at the conference. New Zealand was well served by having those advisory delegates there, and farmers would bo well advised to maintain that form of representation. New Zealand was able to place formulas before the conference, and those proposals were adopted in every case. That was only possible because the delegates had the advice of those men on the spot. Woman Interrupter It had often been said that New Zealand's trade per head was greater than that of any other part of the world. A Voice: It has the most unemployed. Mr. Coates: Some unemployed fail to realise that a solution cannot be found in this country, but only in normal trading conditions in the Empire first of all and in the world afterward. Interruption by a woman followed, and Mr. Coates refused to proceed until quietness ruled. Mr. Coates said it v/as not correct that Ottawa had commenced the principle of regulation of foreign trade. That system had been adopted before in foreign countries. "The object of the agreement was to raise the price-level of our commodities," he continued. "If the price-level is not raised, I fail to see how we are to go on. We were faced with the problem whether we could sell our meat output. Britain would not give a tariff, but was ready to regulate. The point was whether we could safely agree to some proposal of the kind. I think our people can grow all the lambs they want without exceeding our estimate. There are already fewer sheep in the country than formerly. It was not the wish of English farmers that the Dominion's farmers should be shut out of the English market." Position ol Manufacturers It had been said, not so much in New Zealand as in some of the other Dominions, that the manufacturers were sacrificed to the farmers. He quoted figures to disprove that. High tariffs undoubtedly put up the cost to consumers. Wages had been reduced, and everyone's income had been cut down, so surely they had to see that those wages would go as far as possible, and higli tariffs only increased the costs. * The agreement could not be any good to New Zealand unless she could sell her products, and they could not be bought unless purchases were made in return. It was useless to prevent those purchases by a tariff embargo, and to attempt to make everything in New Zealand at whatever cost was not a wise policy. Mr. Coates said he thought New Zealand would be able to sell the surplus of hops for some years to come. New Zealand hops had maintained an excellent place as a result of quality. This was an example of the wisdom of maintaining the high quality of products. It was thought by some that prosperity could be secured by some wonderful manipulation, of the financial system. This matter received the closest consideration, and Britain declared that she would provide as far as possible ample and cheap credit. "My personal opinion," said Mr. Coates, "not the opinion of the Government., is that cheap money must necessarily bring about a fall in sterling. I think these British financiers know their work well. I am not so certain that the British knowledge of finance is not the keenest in the world to-day, and will lead tho world out of the position it has got into. We have goodwill and reciprocity established throughout the British Empire." Mr. Coates said ho thought that in nine or 12 months' time there would be an improvement in price levels of our commodities. He felt much happier as a result of the Ottawa agreement. Tho Empi™ had met and builded a framework on which it could continue to builcl.