TRADING SYSTEM

New Zealand Herald, Volume LXXIV, Issue 22629, 18 January 1937, Page 9

TRADING SYSTEM

MR. NASH'S VIEWS RECIPROCAL AGREEMENTS BELIEF IN BENEFITS By Telegraph—Press Association —Copyright LONDON, Jan. 15 Speaking at a luncheon tendered by the London Chamber of Commerce, the New Zealand Minister of Finance, Mr. Walter Nash, said the relationship between Britain and New Zealand had been an illustration of the advantages of a system closely approximating free trade. It had enabled New Zealanders to enjoy the benefits of the large-scale industry of the United Kingdom and Britons to take advantage of the cheaper food from New Zealand.

New Zealand offered British manufacturers not only the lowest tariff in the Empire but also better trading facilities than any other country in the world. " I feel that a free trade philosophy is theoretically the most perfect trade philosophy, but we need a more perfect world in order to carry it out," said Mr. Nash. " Free trade between Britain and New Zealand would not be enough if the rest of the world was not willing to adopt the same policy. " Progress has meant New Zealand producing more and more from her farmlands, but the number of persons employed on farms is not increasing. Consequently, if the policy of the past generation continues and New Zealand confines its economy to agricultural and pastoral resources there will not be work for the coining generation. In other words, the acceptance of a free trade policy by New Zealand would result in a surplus of young people."

The New Zealand Government's main objective, continued Mr. Nash, was the betterment of the standard of living. Production had only incidentally served the needs of the consumers. Some who should have been consumers had gone without, but that state of affairs did not need to continue. The New Zealand Government was endeavouring to guide production in order to serve the highest ends of consumption. " We are of the opinion that reciprocal trade agreements provide a method of expanding consumption and international trade, which, we consider, must be followed by any Government embarking upon a planned economy," said Mr. Nash. " The greatest difficulty regarding reciprocal agreements is to obtain agreements with other countries, which are required to make them effective. But they have a better chance of success than on a free trade basis. The reciprocal system should be wider than the Empire, and should include the sterling group, namely, France, Belgium, Russia, Holland and the United States.

" There is nothing doctrinaire about New Zealand's policy. We believe that institutions may be moulded and altered, and that no economic system must remain immutable. We also recognise that we require all our energy in order to built the type of economv which will serve the ends of the greatest good for the greatest number."