FOG-BOUND TRADE

New Zealand Herald, Volume LXXVI, Issue 23256, 27 January 1939, Page 8

FOG-BOUND TRADE

In his replies to questions put to him in Wellington yesterday by the conference of importers, Mr. Nash probably knew what he was talking about, but he displayed all his customary mental agility in declining to talk about what he must know. Detailed information as to the extent of import restrictions is still lacking, and the only satisfaction the Minister can give is that "at some time it might be possible to publish a list of commodities which would not be allowed to be imported." Meanwhile trade must continue in a fog of uncertainty. Even as to the possible duration of the restrictions Mr. Nash cannot be explicit. The Prime Minister, of course, talks about the whole trade control scheme as a plan shaped years ago to give effect to Labour's economic theories. Mr. Nash is much more cautious, and, in discussing possible future developments, he qualifies his remarks with a significant "if." Mr. Savage says the scheme is here to stay; Mr. Nash says that "if it continues during 19-10" the granting of licences on an annual basis will be considered. At the moment importers are probably too concerned with immediate orders to worry much about what may happen next year, but it is in the interests of the country that trade restrictions should not continue a moment longer than is absolutely necessary. Denmark has been quoted as a model for New Zealand in the application of trade and exchange control, but Denmark has gradually been freeing transactions with foreign countries, and at present about a third of her imports require no licence. As far as New Zealand is concerned, any attempt at permanent trade rigidit}' must have serious consequences, because rigidity implies the absence of that degree of elasticity which allows commerce and industry to expand in sympathy with public requirements.