EMERGENCY MEASURE

Poverty Bay Herald, Volume LV, Issue 17228, 7 April 1930, Page 7

EMERGENCY MEASURE

NEW AUSTRALIAN TARIFF. MUST SET HOUSE IN ORDER SYDNEY, April 6. Mr. Forde, acting-Mmister of Trade and Customs, has issued a statement declaring that the new tariff measure uas been introduced merely to meet a national emergency, not as .part of the Government’s protective policy, it is primarily intended to restrict imports. “Australia,” he said, “is a debtor nation. Its house must be put in order. One thing the Government is determined upon is that Australia shall honor her obligations. We took this action only after serious consideration and after advice sought from banks and others in a position to say which would be the uest way to rectify Australia’s adverse trade balance, which amounts to £90,000,000 for the past six years.” A N.S.W. CONFERENCE BUSINESS MEN’S ACTION SYDNEY, April 6. A group of representative business men conferred with the Premier, Mr. Bavin, on the subject of the trade depression and financial stringency. The main object was to explore methods ai reducing the cost of production, without causing further unemployment and at the same time ensuring a- corresponding reduction in the cost oi living.' A committee was formed to bring up a report. The State Treasurer, Mr. Stevens, also conferred with the banks in order to get their views. WORLD’S HIGHEST BARRIER COMMENT IN AMERICA FEWER EXPORTS EXPECTED WASHINGTON, April 5. The variety of comment, official and unofficial, on the Australian tariff schedule indicates variance of opinion concerning the seriousness of its effect on American trade, although everywhere there is much interest in what some observers declare to fie “the highest tariff barrier in the world.”

The Associated l'ress reports that the Department of Commerce officials have predicted that American exports to,Australia will decline approximately 50 per cent., both as a result of the schedule and tho business depression existing ill the Commonwealth. The exports to Australia last year, namely £30,000,000, totalled 3 per cent, of America’s export. The prohibition of manufactured tobacco is expected to react favorably on America’s import of leaf tobacco to the Commonwealth which, in 1929, totalled £1,413,000. Officials are confident, however, that as soon as stocks of American goods on hand are reduced, and Australian business conditions improve, the emergency schedule will bo lifted. It is stated that while striking directly against America’s foreign trade in automobiles, Australia’s schedule was viewed with litile concern by the Government trade officials. America’s trade with Australia amounts only to three-tenths of one per cent, of this country’s total foreign business. The correspondent, however, does not make clear that Australia in 1929 absorbed a third of the total United States exports of automobiles to Far Eastern markets.

The New York Times’ Washington correspondent says :, “Late last year it was planned for American consuls in Australia to file exceptions to the tariff lists then in the making, but this .was not done when there was no evidence of discrimination. The new tariff is expected generally to cut American trade.”.

Mr. Hawley, who has played an important partr- in the- revision of the American tariff, now in -Congressional conference, said to-day that he preferred to make no comment oil Australia’s schedule until lie had had an opportunity to study the details. Nevertheless, lie pointed out- that the United States was not in a position to make any protest, unless it could show that there was direct discrimination against American trade. FRANCE MAY RETALIATE BRITISH FIRMS AFFECTED LONDON, April 5. (bring to the increase in tariff duties, the Australian l’ress Association is authoritatively informed that France is contemplating* retaliatory action against Australian goods. Australia house has riot yet been officially informed, but officials have been privately advised. The tariff will come as a blow to the potteries. The director of one of the largest linns in North Staffordshire, winch sends its own travellers to Australia and lias built up a substantial business there, said: “it will cause us a severe loss.”

The head of a firm of sanitary ware makers said: “A large proportion of our trade is with the Commonwealth.” Tho Times commends the 'courage of Mr. Seullin and his Government for tackling the crisis, ana says: “British trade will ho adversely affected, but the set-back must ho accepted philosophically.” The Financial News asks: “Will not the rise of internal prices exaggerate Australia’s present difficulties? The new laws should be given a definite limit.”