The Daily News MONDAY, JULY 15, 1929. TARIFFS AND TRADE.

Taranaki Daily News, 15 July 1929, Page 8

The Daily News MONDAY, JULY 15, 1929. TARIFFS AND TRADE.

For a variety of reasons, the relation of tariffs to trade and commerce has become a leading question in world politics. One of the principal reasons for the renewed public interest in a matter that is generally left to expert political economists is the announcement that the United States of America intends to raise its tariff walls to an extent that will make it exceedingly difficult for other nations to share in the American market, but will enable the manufacturers of the United States, with a protected home market, to dump goods into other countries at prices that will make the path of the local manufacturer exceedingly hard. Of all the countries affected by the proposed American tariff, Canada has been the first to intimate that retaliatory steps will be taken, if necessary, to preserve her export trade. Canadian statesmen see in the development of Empire trade the best reply to the challenge from their Republican neighbour. While all parts of the British Commonwealth of nations will probably agree that the ideal of an Empire as self-contained as is the United States .is excellent, the way to its attainment is by no means clear. The Labour Government in England has, quite justifiably, claimed that the fact it is in office is proof that a majority of the electors of Great Britain have no desire to see a protectionist policy established. It is the Ministry’s intention to abolish the duties established under the late Government’s safeguarding policy, and with this the preference given to Dominion products where the safeguarding duties applied may also come to an end. The attempts i at inter-Dominion trading between New Zealand and Australia have not been very promising, that between Australia, New Zealand and Canada is the subject of fierce controversy, and with all the goodwill in the world the subject bristles with difficulties. But the repercussions of the proposed American tariff have been felt in other European countries, beside Great Britain, while the conviction that hostile tariffs do not promote the international amity which might establish a lasting peace has been forced upon both great and smaller Powers. The outcome has been the suggestion by the French Premier (M. Briand) that a conference of European Powers be held to see whether existing tariffs can be reduced or eliminated. In other words, he proposes that, as in the United States, the European markets be preserved for the European manufacturer. and trader.

with a protective tariff against the rest of the world. The freetrade attitude of Great Britain is the first obstacle to such a “United States of Europe,” and indeed to auy development of in-ter-Einpire trading based upon a protectionist policy. All that can be offered by the British Ministry is an imperial economic conference to explore all avenues that may lead to improved trade between Great Britain and the Dominions, with each portion retaining its autonomy in regard to its fiscal policy. Coming nearer home, the speech of the Minister of Customs (Hon. W. B. Taverner) in the House of Representatives last week reminds us that even in New Zealand the fiscal problem is one of some difficulty. It is, speaking broadly, the policy in this country to protect the local manufacturer to a degree that ensures him the local market. But, as Mr. Taverner pointed out, when that market is limited to a million and a-half people all told it is obvious that secondary industries cannot expand to any great extent, besides which New Zealand must be an exporting country if she is to pay her way. That being the case, it follows that she must be largely an importing country also, for the only lasting manner in which goods sent out of a country can be paid for is by goods received in exchange. Unfortunately, the Minister of Customs did not emphasise what must be obvious to most thinking people, which is that if the local market is to expand under a system of tariffs there must be a very considerable increase of population in order that primary production may be increased to an extent which will provide means for the purchase of manufactured goods. lie did, however, assert that in any tariff revision attempted by the present Ministry, any increase in the cost of living would be avoided if possible. Whether that intention remains only a pious hope or becomes a practical policy remains to be seen. One thing seems beyond question, and that is, that whether from the international, imperial or local viewpoint a closer study of the effects of fiscal policies on the part of taxpayers would be the beginning of political wisdom.