TARIFFS AND PRICES

New Zealand Herald, Volume LXIX, Issue 21345, 21 November 1932, Page 13

TARIFFS AND PRICES

Sir, —Prior to tho last general election I stated in a letter to the Herald that the tariff question ought to bo a leading political issuo. In the same letter I expressed tho opinion' that there was a danger of Great Britain adopting protection while America was gravitating toward freo trade, and that this position would, by increasing Clreat Britain's costs of production enable America to securo moro of our foreign trade. However this latter view may turn out, I am glad to nolo that locally tho stage is set for a fight on tho tariff issue, for as consumers wo havo had to stand the brunt of protection too long. It says little for tho political intelligence of the generality of peoplo that they declaim against tho wages tax of Is in tho pound, but do not realise that they are paying probably 7s 6d in tho pound indirectly, through customs duties. I had. some hopes of Ottawa, owing to the tenor of tho Hon. J. G. Coates' preliminary speeches upon return, but tho actuol "concessions" staggered mo by their paltriness; they actually included duties that were to come off in a few months' time in any caso. Lot us hope something worth while is to follow. Currency reformers believe that it is possible to increase purchasing power in New Zealand, irrespective of what is happoning outside, and without detrimental effects locally. If such a thing can bo done, well and good, but while awaiting tho achievement of such a "consummation devoutly to bo desired," I suggest that we make some really cffectivo reductions in tariffs, thus increasing the purchasing power of the lessened volume of money wo now have, and by helping to lower costs of production also increase our competing power in outside markets. I have always taken tho stand that I would not complain about compulsory reductions in income, and tho increase in wages tax, provided that tho customs duties were substantially lowered, so that my effective purchasing power in terms of goods would not bo seriously affected. Apart from tho inherent stupidity of high tariffs for a country like New Zealand, the imposition of tho "cuts" and tho direct taxation without at tho same time materially reducing duties on imports is what causes a discriminating consumer unforgiving exasperation. T. E. McMillan.