ECONOMIC NATIONALISM

Otago Daily Times, Issue 22285, 11 June 1934, Page 7

ECONOMIC NATIONALISM

INIMICAL TO WORLD TRADE MR BRUCE IN NEW YORK (United Press Association.) (By Electric Telegraph—Copyright.) NEW YORK, June S. Addressing the British Luncheon Club, Mr S. M. Bruce declared that be wished that the League of Nations would make a close study of prohibitory tariffs on agricultural products by industrial nations. The results of the study would undoubtedly surprise the world and show more clearly the consequence of economic nationalism.

Mr Brncc said that, while Australia had internally met her difficulties by a rigorous scaling down of public expenditures and a rise in taxation, externally she dmd no alternative but to increase production and send it into the world markets, further depressing prices, and rigorously limiting importations, Cor all the talk at the World Economic Conference about the dropping of the harriers of trade the nations had returned home to embark on a strict programme of limitation of production and restricted hi-national or small-group trade agreements.

Mr Bruce said that good seasons, the rise in the price of wool, and other improvements in economic conditions had encouraged Australia to launch out in a programme; of more extensive production. Gradually, doubtless, the world would come round to the wisdom of lowering tariff harriers and encouraging an exchange of commodities that would not restrict their production. There was, however, a very conscious economic nationalism still prevailing and realism demanded that this should be closely studied. America was the only country in the world so constituted as to be able to continue on a self-sufficient basis for any length of time. Other countries must awaken to the dangers of riie position. Highly industrial nations used to complain about the efforts of primary producing countries to encourage their secondary industries, but the encouragement of primary production to-day by industrial nations went much further with embargoes and quotas.