QUOTAS AND EXCHANGE

New Zealand Herald, Volume LXX, Issue 21555, 28 July 1933, Page 6

QUOTAS AND EXCHANGE

BRITISH RESENTMENT •J§|| "CREATED" BY NEW ZEALAND^ A CHURCHMAN'S VIEW Archdeacon Mac Murray writes:— The resistance by New Zealanders to the demand of Engliiih agriculturist for a quota on butter exports from this country is evidently raising a feeling of resentment in the Old Country. Personally I dislike the quota proposal, as I think the fewer shackles we put upon trade the better .will be the result for all concerned. But I think the resentment of the English farmer is not surprising when all the facts are considered; and the creation of that resentment by ourselves is very greatly Iff to be deplored. Let us look at the matter dispassionately and-see what are the facts. The f first fact is, that the ink was hardly dry on the Ottawa pact, when New Zealand tampered with our currency by the artificial enforcement of the 25 per cent exchange, greatly to the d&triment of the English farmer—to say the least of such a transaction, it savoured somewhat of sharp practice. Then the failure of the Auckland Transport authorities to pay English investors their interest in sterling had an unfortunate effect in England, for English investors, who bad lent miney oni the sterling basis, naturally resented being paid interest in artificially depreciated New Zealand Of course the Transport authorities *ere aware that large quantities of is~rip which had been subscribed in New Zealand were transferred to England by New Zealand investors, in order to get the advantage of being paid their interest, as they hoped, in sterling, and the Transport authorities are, in my opinion, quite justified in refusing to recognise such a claim. Common honesty, however, requires that scrip subscribed in England should be paid interest in sterling, while scrip subscribed in New Zealand should be paid in New Zealand currency. This is an illustration to show how tampering with the currency opens the door to all sorts of doubtful transactions. But when we in New Zealand demand an open door for our Ibutter into England, we have to remember other very important facts. Of the money we receive from England for our primary products, we expend only about 27 per cent of it in England, while Australia and Canada spend in England a much larger percentage of their receipts. Again England has remitted our war debt contribution. England naturally desires to get as many as possible of her unemployed upon the land, and unless her farmers are not swamped by imported products there is no hope of succeeding in this desirable policy. New Zealand has grown to her present stage under the protection of the British Navy, the cost of which is mainly provided by the British taxpayer. I am not at all certain that th« need for this protection will not be more urgent in the future than it i» actually to-day. It seems to me that there are few more objectionable things in the world than the behaviour of spoiled children, and very earnestly . I deprecate the attitude of some New Zealanders, who seem to demand as a right that Britain must make every sacrifice in order that we in New Zealand shall prosper. As Britain is almost our only customer, her prosperity is practically our greatest interest; our interest demands that a much larger percentage of our imports should be of British goods; and, further, it is to our interest not to create in the minds of British people a feeling of resentment such as is in danger of growing at the present time.