TRADE WITHIN THE EMPIRE

Otago Witness, Issue 3571, 22 August 1922, Page 23

TRADE WITHIN THE EMPIRE

THE COMMERCIAL STANDPOINT. A BUSINESS PROPOSITION AND NATIONAL NECESSITY. At the meeting of the oouncil of the Dunedin Chamber of Commerce on Monday night a strong plea was put forward for trade within the Empire, an address being delivered upon the suibject by an importer in a large way of business. The main, point was that ui>on the prosperity of the working population of Great Britain depended the market prioe of the dominion, products, Great Britain being the consumer of the great bulk of our produce. The speaker pointed out that the unemployment distress at Home had already reflected itself •in New Zealand by the los3 of many millions of pounds owing to the decreased value of our dairy ana other produce. To make clear the point of what trading outside the Empire meant he quoted the Joint Industrial Council far the iron and steel wire manufacturing industry of Great Britain: “It is estimated that the production of a ton of common wire gives a week's employment to the following:—li men in the wire mill, man in the steel works, 1 man in the collieries, £ man in the rolling mill. It will be seen therefore that many classes of labour are affected, and that 3£ men lose work' by the purchase of even a ton of foreign wire, quite apart from the labour employed in transport." Taking it that eaoh family on an average consisted of a father, mother, and two children, each, ton of English wire provided subsistence for 14 of our kindred. In normal times we needed in New Zealand between 20,000 and 30,000 tons of fencing and other wire annually, of which 40 per cent, to 45 per cent, was imported from America. If the importations reached 25,000 tons, of which 40 per cent, was American, the quantity would be 10,000 tons. The placing of these orders with America took away employment from Britishers and the means of subsistence' from 140,000 of their dependents. It vva3 not a question whether we oould justify such action —each man must determine that question for himself, —but whether to do so was not the most foolish policy that could be adopted. Was it not, he asked, suicidal to do so? What country bought our butter, our cheese, meat, kauri gum, and the bulk of our wool? Who lot all of our produce in free of duty? Who gave safe conduct to our .produce because we have neither the strength nor the finance to look after it ourselves? From a dominion viewpoint and our own, it was necessary to find a market for our produce, and where oould we look to? Nearly every nation in Europe was in a state of bankruptcy, and until the present financial oliaos was overcome we could not depend on any country in Europe outside Great Britain to purchase the dominion’s produce, fine only other country wa3 the United States of America. Twelve months ago we were supplying them with our lamb, but immediately fair quantities were shipped there they at once placed a prohibitive tariff not only upon our meat but upon all our produce. The farmers’ party there was so strong that if the present enormously high tariff was not sufficient to drive our produce off their market, they could demand a still higher tariff. From a purely selfish standpoint, it was neocssary for all, especially farmers, to insist on demanding British manufactured goods, if such could not be produced in this dominion, for the simple reason that Britishers oould only live whilst they exported manufactured goods, and we could only live if the Britishers could afford to purchase our produce. The Americans would not have our produce. Why, then, shorni'd we purchase their manufactures? To do so was to commit financial suicide. It should appeal to the merchants and storekeepers that the greatest benefit they could do for the farmers and their country was to refuse to stock Amerioan fencing wire and manufactured goods. By supplying British manufactured goods, they would ensure giving satisfaction and good value to clients. Proceeding, tho importer said that the average trader argued that the farmer and the public would buy, especially during these times, whatever cost the lesser money, almost irrespective of quality or place of origin. That argument was a stigma on salesmanship, for a trader was no salesman if he was unable to determine and sell the most suitable, and, at the same time, the best value article for bis customers requirements The reason was rather that it was easier to sell what the public asked for; hence the present suicidal policy which was spreading year after year. In 1913 we purchased from the United States £2,108,000, and in 1920 £ll,loo,ooo—an increase in seven years of nearly £9,000,000; and in the meantime they wore using their best endeavours to prevent our produce entering their country. They were doing more than this; they were passing special legislation to strangle the British shipping industry, as far as the United States was concerned, and it was a pleasure to see that the English Government was retaliating. It might be asked: “ What can a small country like New Zealand do against tho United States?” The answer was: “What did N.Z. do when the great war came?" Wo sent 10 per cent, of our total population and all our best manhood to risk their lives, their limbs, to stand untold misery and hardships. What for? Was it so that Germany could find full employment for her population, while our own brothers inarms should, with their dependents, suffer semi-starvation? Last May and June, excluding coal miners who were out oil strike, unemployment percentages were 22.2 per cent, arid 23.1 per cent respectively, and since December, 1921, had averaged between 16 per cent, and 17 per cent., apart from the largo numbers who were registered as working systematic short time in such a manner as to entitle them to unemployment benefits. When it came to fighting for the Empire we were all there, whether it was with our blood, limbs, or wealth. There was rio lagging behind to see what largo countries would do. We did not worry whether we were too small or not to tackle the job. It was our job and we did it, or rather took our part of it, “But,” he asked, “is the job completed?” The first round even was not completed, and would not be until we had found remunerative employment for every individual within I ho Empire that would do an honest day’s work at a fair rate of wages. This could not be done if traders shirked their responsibilities or were so grasping that instead of upholding the sound policy of trading within tho Empire whenever possible, they sold whatever wns asked for either because it was easier or more profitable to them. England wanted no charity, but simply

fair play. She not only gave free access to trade with her, but also protected our produce whilst it was on the way, gave security in our homes, found the steamers to carry our produce, and found most of tho necessary finance that permitted us to get the full market price. What did we do in return? The only attempt made to repay these great obligations was our preferential tariff. Was that adequate? Perhaps it was the best the Government could do without the aid of the trading community, and surely it was sufficient to ask traders to give this matter due thought and have it righted. The argument that Germany and the United States must export and trade with the rest of the world ivaa quite true. There were certain goods wo must import from the United States that were not manufactured or produced within the Empire, but goods that the Empire could supply should be purchased by us, regardless of price. The argument that all things being equal we would give preference to the Empire’s manufactures carried no weight, because it was always evaded when a larger profit could be secured by selling foreign goods. The price of the foreign goods might be cheaper and the article inferior, and when the difference in quality was pointed out the trader’s answer almost invariably was that it suited his customers, because he was ashamed to admit the real reason, which wa3 that his greed was greater than his loyalty. If Germany and the United States wanted to build up an export, trade let them follow England’s example of developing countries that needed it—Russia, for example. Let them find the energy, brains, and capital necessary, as well as paying the necessary taxation, to protect those oversea interests. Why, when England had loaded herself with suoh a heavy burden of taxation to protect her and our trade, should we be so disloyal as to allow others to reap the benefit? The argument that a trader must buy in the cheapest market, irrespective of anything else, was absurd, as, no doubt, the late war had convinced every thinking man. Before the war New Zealand and other parts of tho Empire were buying freely from Germany and helping to build up her industries, and, incidentally, her war machine. When war broke out we found there were many important necessities that we were entirely dependent upon Germany to supply. Now, before the first round of the fight was completed, we were drifting rapidly into the same disastrous rut followed before the war. “ England is entitled to our trade, because we belong to her just as much as your particular business belongs to you. She founded this country, developed it, protected and protects it, and gives us our freedom, and the only way wo can prove ourselves worthy of her confidence is to see that no item she can supply is filched by seme foreigner. You would be hurt if a foreigner came into your district and your customers left you to buy inferior goods because the price was less. How much more so would be the pain if you had helped each of your customers to settle ill the district, to make a decent living by financing him, protecting him from dangers and finding him the means of carrying hri productions to your market and giving him a free market? That is what England has done for us, without cavil or interference, leaving us to reciprocate if we are loyal enough.” The importer quoted approximate figures of the los3 sustained by the dairying and other interests through the decreased purchasing power at Home owing to the great amount of unemployment. In the case ot cheese alone it amounted to the difference between ll£d and 7£d per lb. The trade figures of the last quarter were eloquent. Great Britain took £12,000,000 worth or our oxports, Germany £165,003 worth, -and the United States only £54,000 worth, let » imported from America no less than £11,000,000 worth of goods. ‘lt means, _ said the importer, “ commercial suicide. He asked the chamber to give earnest consideration to the whole matter, explaining that he was approaching al'l associated bodies with a view to seeing if something could not be done to remedy matters.