The Waikato Independent THURSDAY, NOVEMBER 26, 1931. RESTORING TRADE BALANCE

Waikato Independent, Volume XXXI, Issue 2780, 26 November 1931, Page 4

The Waikato Independent THURSDAY, NOVEMBER 26, 1931. RESTORING TRADE BALANCE

The campaign which is being inaugurated in Great Britain in favour of the purchase of British goods is directed in the first place towards securing a restoration of the trade balance states the “Otago Daily Times. ’’ It may bo described also as one of the happier effects of the abandonment of the Gold Standard. The British consumer has always enjoyed a considerable freedom in the choice of the commodities which he purchases. Attempts to turn his attention to the products of his own country, and of Groat Britain overseas, have not been result-less, but the Englishman and the Scotsman have been wont to regard the world at their marketing district, their main concern being to procure the best, whatever they desire, irrespective of ' origin. The abandonment of the Gold Standard serves, however, to emphasise the economic advantages, as apart from sentimental considerations that have greatly weighed in the past, of purchasing British Goods. Having retreated from the Gold Standard, the Government is determined to show the people of Great Britain that the adverse financial reactions to this necessary move may be greatly minimised by wisely placed expenditure. The immediate effect of the departure has been to reduce the purchasing power of the pound sterling in foreign countries. Foreign goods cost more to the British purchaser, and British goods sold abroad realise proportionately less. In recent years the trading transactions of Great Britain have shown a visible adverse trade balance of about £400,000,000. Receipts in respect of overseas investments and the returns on tremendous British un e'ertakings abroad have reduced the de ficiency, but it has been estimated that after all available credits have been employed, there will remain this year an adverse balance of some £8,000,000. The disturbed (but fortunately improving) state of industry in the country should, in itself, constitute a sufficient reason why British- people should give preference to British goods in the purchasing power , of the pound in foreign countries must constitute an even stronger argument in favour of making this preference. The knowledge that in buying British goods they are not giving assistance to British industry, but are actually saving on their personal expenditure, may be expected to exert a profound influence on their minds. The “Buy British” campaign will be welcomed by the British dominions and possessions overseas, for the promotion of reciprocal Empire trading is the logical extension of the effort. In a time of world depression the unique opportunities for co-opera-tive trading which exist within the British Empire stand out in bold relief.