The Daily News SATURDAY, OCTOBER 12, 1929. THE RECIPROCAL IMPULSE.

Taranaki Daily News, 12 October 1929, Page 8

The Daily News SATURDAY, OCTOBER 12, 1929. THE RECIPROCAL IMPULSE.

■According to present indications, it seems fairly certain that the forthcoming economic conference will neither lack ample material for discussion nor difficulties over the adjustment of views. Ever since . the great economic conference at Paris in June, 1916, the question of post-war trade and commerce has been a subject of much concern and diversity of opinions. At that conference the Alies, as well as the Empire units, joined in giving practical expression to their solidarity of views and interests. They came to the conclusion that it was their duty to secure for themselves and for the whole of the markets of neutral countries full economic independence and respect for sound commercial practice. Among a large number of resolutions recorded was one to the effect that preferential treatment should be accorded to the British Oversea Dominions and possessions, and that consideration should be given to other forms ot preference than Customs duties. The delegates to that Conference must be credited with the best of intentions, but they completely failed to envisage that many circumstances would arise to prevent their resolutions being carried into practice. It was speedily recognised, however, that the post-war struggle would be even more prolonged than the war itself. In that view their forecast was justified, for more than eleven years have passed away and the economic problems which then loomed large are still with the nations and demanding solution. A recent cablegram from London stated that when commenting upon Sir Robert Horne’s plea that the present Labour Government should relieve all uncertainty as to its fiscal policy, the London Times observed that the responsibility of that Government would be heavy if wanton abolition of the preference accorded to the Dominions were to result in the diminution of the preferences, “which are worth seven times the amount accorded to British goods-” The Times further insisted that the conception of the whole Empire, including Great Britain, as a single producing and consuming unit, happily does not depend upon its encirclement by a common fiscal barrier. Obviously, so long as fiscal barriers are erected, whether for the purpose of State revenue or the protection of industries, they are bound to prove hindrances to mutual trade. The action of the United States in raising its Customs duties has drawn special attention to the •evils attendant on high fiscal duties. The people of the Empire need not trouble themselves over this policy of America, which must iii the long run do harm to the United States, particularly with regard to business with Canada. There is much commonsense in the argument of the Australian . High Commissioner (Sir G. Ryrie) that the unification of productive interests is a process which has proceeded, and can proceed, in spite of the persistence of national tariffs, and is well calculated to secure by natural means the more rapid spread of population. He illustrated his meaning by stating that last year two large British firms recently amalgamated with two Australian iron and steel firms, while similar Imperial amalgamations had taken place in. the fertiliser and rubber industries. Without doubt, the question arises whether official efforts to promote the. sale of Empire goods, and individual efforts' at rationalisation on an Imperial scale will really exhaust the inspiration of the reciprocal impulse “to buy from those who buy from us.” It will be only a w r aste of time, energy, and argument for the representatives of the Dominions to attend the Economic Conference unless they are prepared to be inspired by the reciprocal impulse. Each Dominion is entitled to fix its own fiscal tariff, and-

even to isolate itself thereby., but if there is to be a community of interest and the fostering of trade within the Empire, the units will have to altei’ their present policy to tit in with a well devised scheme that will be of benefit all round. It may be claimed that to only buy from those who buy from one another is a short sighted and somewhat shallow policy, yet it has to be remembered there is a general desire to buy goods in the cheapest markets and to sell produce in markets where the highest prices are obtainable. That, of course, is business, yet as a matter of ethics concerning Empire unity it is necessary to take into account the important factor of leciprocal impulse. What will happen at the Economic Conference cannot be forecasted, especially as the election pledges and policy of Labour will need considerable adjustment if any results beneficial to the Empire are to be achieved. There ‘have been signs of the Lobour Government’s views on protection and safeguarding being toned down in some directions, but that is not so important as the presentation of a united front by the Dominions on fiscal matters and the promotion of trade within the Empire.