EMPIRE TRADING

Southland Times, Issue 20010, 26 October 1926, Page 6

EMPIRE TRADING

In the discussions at the Imperial Conference emphasis was put on Empire trading as the expansion of the idea' formulated in previous years for the exchange of goods between the Mother Country and the various units of the Empire. Mr Coates seems to have devoted a considerable amount of attention to this aspect of the question, insisting that New Zealand should be sending more of her products to other parts of the Empire in addition to her exports to Britain. Arrangements between Canada and Australia are in keeping with this policy, but another important step necessary for the furthering of this ideal is the cheapening of the freights between the countries. The shipping question is extremely complex, and it must not be considered sectionally. Reductions in freights which enable the producer to put his foodstuffs on the London market at a lower cost are excellent for him and for the consumer, but if these savings are balanced by increased freight charges on manufactures imported from the Old Country the result is a penalty on British-made goods, in part defeating the objects of th? Preferential tariff, and raising the cost of the imports to the consumer in the outlj'ing parts of the Empire. Mr Coates, referring to the operations of the control boards, dealt with the development of co-operative marketing and was emphatic in declaring that these boards are not governmental. Actually they are not, and the less the Government has to do in the way of interfering with their operations the better; unless their operations are obviously inimical to the whole country. It was not intended that these boards should become instruments for putting higher prices on to the British consumer, but in connection with the dairy industry this seems to have been the opinion formed of the board’s operations. Mr Coates obviously is nervous of the situation in the Old Country created by the marketing policy of the Dairy Control Board, and recent events show that he is not alone in this view. Co-operative marketing is develo[>ing, but it must always take cognisance of the fact that it must keep its markets, and that its power must be regulated by its real strength in relation to the actual conditions of the market it serves. “Consistently good, not occasionally excellent,” the Irish Free State declared to be the aim of the dairy industry in Ireland, and that policy can be developed in this country with advantage. Whatever may be the views on the Dairy Board’s policy for the London end, it is obvious that there is much to be done by the board in New Zealand to maintain and even improve the standard the Dominion’s produce, to exploit new methods of treating produce for the market, of cutting down the cost of production, collection and shipment. These things are necessary to make it possible for the New Zealand producer to meet competition in the Mother Country. Criticism of the methods of the British manufacturer and his failure to meet the requirements of the Dominions has been met in the past by the statement that the Dominions take only a small part of Britain’s exports. In 1913 Britain took from the Empire £191,500,000 out of a total importation of £768,700,000 and ten years later the figures were £325,900,000 from the Empire out of purchases amounting to £1,096,200,000. These figures are a rough guide to the development in the ten years, but they show an increase which will be borne out by the details. In 1913 Britain’s exports totalled £525,200,000, of which £195,300,000 was sent to various parts of the Empire. Ten years later of exports valued at £767,300,000 she sent £300,600,000 to the other portions of the Empire. In 1913 she sold more than she bought; in 1923 she bought more than she sold to the Imperial family, but the rate of increase in the Dominions’ buying was apparent. The development has eliminated the old answer to the criticism of the British manufacturers’ failure to serve the requirements of the Dominions and to-day the Home business man is taking up this aspect of the problem vigorously. This change will assist in making Empire trade a more vigorous thing, a more equitable thing than it has been in the past. Tariffs alone cannot provide the solution, though unquestionably they assist materially, and there must always be a recognition of the cleavage between the Mother Country and the Dominions on the question of protection, because in the one case the principal purchases are raw materials and foodstuffs, and in the other * they are manufactured goods. With these vital differences recognised it is possible to 'develop trade preferences to mutual advantage. At the same time a general census of the Empire should assist in a redistribution of trade, where it will lead to goods made within the Empire receiving

preference in the markets of the Empire. Imperial trade is taking on a new impetus and the frank discussions among the Empire’s representatives will be followed by practical steps further advancing this policy as a means of knitting the Imperial family closer together for greater economic as well as political strength.