Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, THURSDAY, DEC. 27, 1934. TWO-WAY TRADE

Poverty Bay Herald, Volume LXI, Issue 18589, 27 December 1934, Page 4

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, THURSDAY, DEC. 27, 1934. TWO-WAY TRADE

“Extreme nationalism, if persisted in, is destined soon to wreck the cnlire structure of Western civilisation.” The words are those of the United Slates’ Assistant Secretary of State in an address to the Foregin Trade Association, and they were supported a few days later by Secretary Hull, himself, who, admitting that the United States had set “the vicious example of high tariff. I *,” declared “wo have now repented. We are asking other nations to join us in an attempt to undo the damage our col lootivo action has worked. We wish to break down nil the artificial and excessive impediments put on the way of world commerce, not only in our own interests, but for the benefit of all others as well, since only by restoring the whole world can individual countries hope to remain economically healthy long.” Mr. Hull characterised ordinary international trade as one of the greatest; educators, civilisors and peace makers, and said “a ho'rmit nation means a hermit civilisation.” Good words these, but it will be possible to believe a little more confidently in the repentance of the United States for its. sing of high

protection when we see Congress lowering the towering tariff walls. Meantime the Administration has taken ample powers to commence the adjustment of tariffs and to bring into effect two-way trade. President Roosevelt for some time past has been hankering after currency stabilisation, but there are two things that stand in the way; first the vexed question of war debts, and secondly America \s high tariff walls, which prevent anything like trade on equal terms. The United States is slowly coming to the point when she must realise that she is an integral part of the world and that if she vdslies to s'ell she must also buy. When a policy founded on recognition of those facts is established fhere will be some hope for world economic recovery. Meantime, as we have said, the Executive has taken wide powers to start a reciprocal trade movement. The Reciprocal Trade Agreements Act, recently passed through Congress, is a momentous measure, inasmuch as it assumes officially, for the first time in United States’ history that foreign trade is a two-way process. The Act confers upon the Executive alone full tariffmaking powers. The President, with the aid of various departments of Government, may proceed forthwith In a tariff-making policy which is not only free from partisan interference, lmt which is based upon a scientific analysis of economic facts. For the purpose of this scientific analysis and the framing of reciprocal trade treaties there are three standing committees and. a number of special committees. Business men, whether importers or exporters, "will have opportunity to come before these committees and present their arguments ns to the treatment which shall be given to the various commodities in which they are interested, and each committee will prepare a detailed analysis of the economic relationship of the United States with the nominated country. Thus if Swifts or Armours, or any other American firm wants to open up an import of New Zealand lamb, butter, or wool into the United States it has simply to present its ease to the Foreign Trade Committ.ee, which will have the matter fully investigated. It is not to be supposed that finality will be reached without a good deal of hard bargaining between Wellington and Washington; nevertheless the fact that authority to negotiate exists and that the United States clearly is eager to regain lost trade gives hope that some satisfactory arrangement may be made to absorb New Zealand produce. Air. Alurehison, director ot the Bureau of Foreign Commerce, in the course of a broadcast address from Washington recently, declared that in nil foreign trade at least two conn trios are involved. The exports of the one necessarily become the imports of the other. Hitherto, he said, the United States has proceeded on the bland assumption that the promot ion of export trade was a matter entirely independent of all considerations of the country’s import trade. This had led 1o two grave errors in national policy, the first being resort to artificial measures to expand exports, the second being the imposition of almost insuperable barriers to the purchase of goods from abroad. Whilst, as we have previously pointed out, the agrarian interests in the United Stales have to be considered because of their great voting strength, nevertheless there appears to be some foundation for the belief that necessity is driving the United States to a more generous conception of: trade relationships, and that it may yet be possible, so far as New Zealand is concerned, to obtain some share in the supply of commodities to the American market, provided, of course, that this is not done at the expense of British manufacturers, to whom, under the Ottawa Agreement substantial preference must be given.