INTERNATIONAL TRADE

New Zealand Herald, Volume LXXII, Issue 22076, 4 April 1935, Page 15

INTERNATIONAL TRADE

EFFECT OF RESTRICTIONS CHANGE OF POLICY URGED "I believe tlhat if the world continues as it is going; we will reach what we are heading for—economic disaster." j said Mr. H. R. Rodwell, lecturer in economics at Auckland University Col- ; lege, in an address given at a luncheon i of the Auckland Creditmen's Club held > ia Mil;ae and Choyee's Reception Hall j yesterday. Tliie luncheon was attended ! by oveir 60 members of the club. Mr. J. A .C. All'iium presided. In opening his address, which was entitled 'T'fcie Present State and Future Prospects of World Trade, Mr. Rodwell said that nowhere had the re- i lapse, the backward step, in previous i world advancement been more apparent* than in. the field of trade. Mem- i hers had heard the argument that loss ; of international trade could be oflset j by the stimulation of internal trade, | but he, himself, did not agree with it. I Mr. Rodwell spoke of the so-called ; "recovery" made by England in 1933 ! and 15131, bu:t statistics showed that it was chiefly :sn the home industries. There was evidence, however, toward the close of last year that even some of these were showing a slackening tendency, iind were unable to check an increase in unemployment. The reason | was that progress in the development of internal trade was reaching its limit. 1 The ssime tendency was evident in other | countries as well as in Britain, j in Britain in 1934 there was an inS crease in external trade, but a greater I increase in imports. This reflected the ! increasel activity of the internal mar- | ket. Although this could not continue j much longer, Britain appeared to be I determined l;o foster home industries ! at the expense of international tr;ule. ! The Government had restricted imports. I instead of endeavouring to increase ! them. "It seems to me that the problem 1 has been tackled from the wrong | angle," said the speaker. France and Italy wore similarly placing restrictions I upon their purchases. Germany was the one country in Europe that desired freer j trade, but was prevented by her econ-v mic position from achieving it. The result was that the channels oi |! international trade in Europe were lj blocked, and there! did not appear to ; be movement, anywhere, said Mr. Rodjj well. In spite of the dismal outlook j! and the refusal of the world to lead the ii writing on the wall, he did not think there was meed for despair. With a ' realisation of the situation, and the i! determination to return to a collective ! economic: system, civilisation would be j given world prosperity, which it had come to regard as its rmlit to possess.