“MADE IN NEW ZEALAND” WEEK

Otago Daily Times, Issue 22268, 22 May 1934, Page 11

“MADE IN NEW ZEALAND” WEEK

TO THE EOITOB. Sib,—The published statements of our parliamentarv leaders and others in support of the search for a market for New Zealand manufactures indicate that, in their opinions, the solution of economic difficulties lies in the exclusive purchase of locally-made goods to the end that wages and salaries should be maintained as the main media of distribution of claims to goods for personal use. I should like to point out that the *urplus funds held in London amount to, approximately. £20.000.000. which sum has been bought with New Zealand-made goods. The equivalent money value of foreign goods has not been purchased by the people of this country. In view of these facts, I do not think that we A'ew Zealanders can be accused of failing to give preference to local manufactures. The general opinions of the various advisers as to the necessity for " making

work" seems to be summed up by. Mr Mander, who commences to draw a circle from a point where prospective purchasers have money, through the spending of which they are urged to express preference for local manufacturers. The drawing of the circle cannot be commenced at that point os the purchasers must obtain the money before they can buy any goods. I suggest that the circle would be more correctly commenced at the point where the money with which to buy the goods at present on sale reached the intendinc: purchasers. If the circle is commenced at that point it will be found that the money has reached the purchasers mainly in payment for work done in retail shops, warehouses, factories, etc.. and for work in the construction of factories, niacnines, and other classes of capital goods ami will represent part of the costs that must be collected in the prices of goods which will appear in * the shop windows at a later date. In view of the fact that the purchasers cannot spend their money in buying the goods available this week and also retain it to buy the goods which will be on sale at a future date, it is necessary that they should be continuously employed, in the production not only of goods for immediate and future consumption but also in the erection of factories and other plant which they do not consume. This method of distributing claims to all available goods, therefore, requires a continuous process of capital expansion which must ultimately be stopped if only for the reason that all building space will be occupied and the cessation will once again place the manufacturers in the position of having unsaleable goods and a large section of the workers in the ranks of the unemployed, and consequently on the verge of starvation. I must conclude that the New Zealand manufacturers and their political sponsors have only succeeded in pointing out a means of making future living conditions more trying, and that the circle drawn by Mr Mander is, after all, one of the " vicious " variety.—l am, etc.. May 19. Fiat Lux.