CONTRACTING IMPORTS

Taranaki Daily News, 7 November 1930, Page 12

CONTRACTING IMPORTS

PROCESS OF ADJUSTMENT EXPORT INDUSTRY’S NEEDS. COUNTERACTING DEPRESSION. (Special Correspondent.) Wellington, November 5. The Customs duties collected at the chief centres show a steady decline, and this was to have been expected, but the Budget estimate, although providing for shrinkage, did not allow a big enough margin, and unless other revenue items show increases, or expenditure is drastically reduced, which is unlikely, the financial yeat will close with a deficit. That imports would decline very heavily was obvious, for every step calculated to reduce the inflow of merchandise has been taken. The exchange rate on London is very high, which in itself is a wholesome check on free importing, and then again additional taxation, imposed mostly on the group of luxuries, has further checked this class. A very large proportion of the Customs revenue is derived from luxury imports, and the Acting-Prime Minister bewailed the fact, while giving the House the preliminary figures of the revenue for the first half-year, that the imports of luxuries were declining, and with them the revenue.

The contraction of imports at the present time is a normal movement. We must cut our cloth according to requirements. Since our exports have diminished in value, and persist in rem'aining at a low level, wc have not the funds or the credit with which to buy outside goods; Products must pay for produets in trade, and as our products are bringing less money, we unust perforce buy less. The present conditions are not permanent; that is to say, the country will not remain permanently depressed. Since our export values are depressed and show no signs of improving, we must adjust our standard of life to meet the situation. One thing is certain and that is that the export industry must earn a profit. The farmers, who are the ( mainstay of the country have a right to look for a reasonable return for what the/ produce and export. They are not getting that reasonable return, because the money they receive is swallowed up mostly in costs. . Here is where there is urgent need for review and adjustment, and the longer this is delayed the longer .will the depression last. A decline in the standard of life is inevitable and will come about automatically but slowly, because we are endeavouring to maintain a fictitious standard through legislation. There has been a slight decline in the number of unemployed during the past week, and this will be seized upon by some to indicate that the depression is passing. It must be remembered that the country is just beginning‘to gather in. the returns for the season. The dairymen are hard at work, and will be working much more strenuously during the next three or four months. Shearing ought to be in full swing presently, if weather conditions are favourable, and the freezing companies will begin operations in the course of a few weeks. With milk cheques, wool cheques and meat cheques floating around, it would be alarming if the number of unemployed increased. Compared with last year the number may be greater. The balance, of trade for the produce year should show in our favour if the present trend of imports to contract is continued. A correspondent of a Wellington paper appears to have taken alarm, and to further restrict imports he suggests that the Government should immediately declare all imports illegal, and a license to import any article must be obtained either from the present Department of Industries and Customs or from a special department set up for the purpose. New Zealand manufacturers ate to be scheduled and their articles of manufacture and prices declared, and the mode of procedure is that on. receiving an application for a license to import a line of goods, if the article is manufactured in the Dominion at a (reasonable price, then the license to import should be refused. It is truly wonderful the economic ideas that prevail in the country. Almost every other man appears to possess a patent remedy for unemployment, depression and all .other ills that trouble. The patentees without exception appear to have childlike faith in legislation, quite oblivious of the fact that economic laws are above legislation and cannot be broken with impunity. The right to buy And sell commodities is inherent, and to have Parliament interfering is the ivay to bring about a revolution. If we want the present depression to pass quickly we must set about adjusting costs. Even if ’- 7 e fail to take action the depression will pass because things will adjust themselves automatically and painfully.