RECOVERY SLOW

Taranaki Daily News, 5 September 1935, Page 5

RECOVERY SLOW

EFFECT OF BILATERAL TRADE. NEW ZEALAND EXAMPLE CITED. By Telegraph—Press Assn—Copyright. Rec. 8.30 p.m. London, Sept. 4. Professor J. G. Smith, in his presidential address to the economic section of the British Association Congress at Norwich, cited repercussions in New Zealand as an example of the evils of European efforts to attain self-suffici-ency. If they continued New Zealand would be forced to divert its population into uneconomic secondary industries and exclude every article that could be produced at home. The application of quotas and exchange control had gone far beyond their original purpose of smoothing currency fluctuations and stabilising the balance of trade. Europe at present was obsessed with making- imports and exports balance bilaterally, tending to slow down international trade and the capacity of the weakest countries. Professor Smith considers the restoration of world trade will be very slow. Even the Ottawa treaty diverted rather than enlarged trade. Stabilisation was essential, though unhappily it did not seem within sight.