TRADE IN FETTERS

Poverty Bay Herald, Volume LXVI, Issue 19884, 10 March 1939, Page 2

TRADE IN FETTERS

“ELEMENT OF FEAR” CLOTHING AND FOOTWEAR BUSINESS ALARMED Import restrictions and exchange clearing are viewed with grave anxiety by the drapery', clothing, and footwear retail trades o£ the Dominion. So much is evident in the leading article of the official organ of the . New Zealand Federation of Drapers, Clothiers, and Boot Retailers. It is remarked that the position with regard to restrictions on imports and regulation of exchange clearing remains “so vague and un- i certain as to cause serious alarm ■ in trade circles, more particularly ( among the retail section which is almost entirely responsible for the distribution of consumers’ gooas to the public. The result from the business point of view is disastrous as it strikes at the foundations of trading security; destroys the confidence of commercial men here and overseas who are responsible for supplying the every-day needs of the community; and . again introduces that element of fear and uncertainty. which is fatal to trade prosperity, 1 and often the forerunner of panics. and slumps.” I Assurances Needed I Granted that the drastic measures adopted by the Government in restricting imports and rationing exchange were forced upon it by depletion of overseas balances, the diminution of sterling funds was not a sudden or unforeseen contingency. It must have been observed by the { Government long before the decision for immediate action was made. II j not, then the authorities responsible, i showed “an alarming display of lack of foresight and prescience, and it is possible that action was deferred in order that unpalatable decrees should not be enforced until after the general election was over. “The trouble is to ascertain exactly where we stand.” The immediate need is for reliableassurances as to the exact extent to which trading activities are to be restricted, and for how long such disastrous interference with normal trading activities may be expected to continue. “On this point our commercial community is entitled to authoritative assurances. Confusion Becomes Worse “When wc look for assurances in this direction from these in authority the confusion becomes worse and the uncertainty more alarming. Because while the* Prime Minister tells the country that the action of the Government is part of a long-term plan and a new economy' —or 'Now Deal - — Mr. Nash assures us that it is purely an emergency measure forced on him to make the. country’s credit good in London, and implies that as the position of sterling .funds there improves the restrictions will be eased; but at the same time we find the Hon. D. G. Sullivan, as Minister of Industries and Commerce, ■ proclaiming that the steps which have been taken are part of the Government’s policy of building up industrial development and manufacturing production within the Dominion. “In the face of such confusing and mutually contradictory claims by the Ministers mainly responsible for the position which has developed, it is difficult for the bewildered business man to realise where he stands, or how he should plan his affairs so as to carry on business as usual. A Serious Position “In no section of the business community is the action of the Government more widely felt than among the members of our federation. Our associated retailers are concerned in the sale of both local and imported manufactures, and the large majority of them are importers on their

own account, either through their buyers overseas, or through indent and manufacturers’ agencies here. They fill a vital and essential service in supplying the people with goods they need, and tnis sudden dislocation in normal supplies o! every-day requirements must have a most serious effect on both our shopkeepers and our customers, but the position is so confused and uncertain at the present moment that it is impossible to get a clear idea as to the ultimate extent and effect of this interference, but if our traders are unable to get supplies, and stocks cannot be maintained and replenished, the public will find us unable to meet their requirements." Warnings Unheeded The emergency which arose, the trade organ holds, was "not due to more importing ol' consumers’ goods nor to tiie small decline in exports.” The main cause, it is contended, is “tiie Government’s own spending and importing activities, and to the return overseas of funds allowed to remain here temporarily by overseas exporters in the hope that the Government's promise of improving the exchange position would materialise.” Illusory Benefits The federation points out that “it will not be much use the public enjoying a higher spending power it the goods are unprocurable; and reduced s-.es will mean reduced staffs. “There will be a serious falling off in revenue from customs duties, sales tax, income tax, and the levy on wages, salaries, and other incomes, at the very time the Government will be looking for every penny it can collect in order to implement its incoming social security plan, with ils greatly-increased expenditure on old-age and other benefits, and its new national health plan with (free medical and dental service 1 , nursing, hospitals, and medicine for all.”