SELF-SUFFICIENCY.

Star (Christchurch), Volume LXVI, Issue 20360, 18 July 1934, Page 9

SELF-SUFFICIENCY.

Disruptive Influence of Foreign Tariffs. SYDNEY, July 10. Dr A. G. B. Fisher, economic adviser to the Bank of New South Wales, in a lecture to the University Economic Society, said it was doubtful whether national self-sufficiency would increase the chances of internal stability. There would be constant difficulties in arranging for the satisfactory disposal of such export surpluses as remained. Dr Fisher said that, on the whole, the world could probably stand autarchy, as national self-sufficiency was called, better to-day than it could have in the past. With the general improvement in the standards of wealth the relative importance of international trade had declined, and rapid scientific advance had made the problem of getting adequate food supplies much less urgent. A policy of autarchy would nevertheless result in extremely heavy losses. These were likely to be concentrated mainly on people closely associated with transport industries, on the groups who got their living from the transfer of capital between countries, and on countries which relied for their prosperity On the disposal overseas of large quantities of food and raw material. Dr Fisher said that the modern sentiment in favour of autaichy showed itself in efforts to cut down external trade connections to the barest minimum, in checks on the free movement of capital between countries, and in the refusal to accept foreign migrants or to allow citizens to emigrate. The sentiment was based to a large extent upon the fear of .war, though the defence which autarchy offered was likely to be ludicrously inadequate. The efforts to get protection in this way made it probable that the fears cf war would be realised. There was also a strong feeling of resentment at the disturbances in home economy which dependence upon uncontrollable external forces seemed to involve. Foreign tariffs disrupted export industries, foreign imports disrupted home industries. Creditor countries wanted more investment at home, while debtor countries hated the foreign capitalist. The fears about inability to purchase essential foodstuffs and raw material supplies abroad seemed to be unfounded, but there was an immense human resistance. to the changes which acceptance of the opportunities offered by free international intercourse for higher standards of living olten seemed to mean. People failed to realise that resistance to such change itself imposed heavy losses and merely altered the form which the changes must take without removing any of the difficulties. Many of those who believed in a planned economy also believed that planning would be easier in a selfsufficient community, though it should not be supposed that planning logically led to self-sufficiency.

It was no use disliking autarchy, Dr Fisher added. Australia must take active steps to meet the real difficulties which created the demand for it. Probably the most important step would be a more enlightened political policy in international relations. This would include willingness to revive the peace treaties It was also desirable to encourage the rapid development of relatively new types of work, which would ease the pressure cn the already overcrowded industries, whose fears made people so hostile to foreign trade.