The Waikato Independent WEDNESDAY, OCTOBER 3, 1945. OUR CLEARING HOUSE

Waikato Independent, Volume XLIV, Issue 1188, 3 October 1945, Page 2

The Waikato Independent WEDNESDAY, OCTOBER 3, 1945. OUR CLEARING HOUSE

ANNOUNCEMENT of the changed shipping routes between New Zealand and London serves to bring prominently to notice the line our produce must follow, but, more importantly, the need to conform with the circumstances which are compelling economic readjustments. It is informative, to say the least, that this Dominion’s shipping via Panama has presented a claim in dollar currency at the rate of nearly £300,000 sterling a year, though it is well known that London was the clearing house for the money exchanges. To be now told that this exchange demand must be eased gives cause for reflection and compels the realisation of what. New Zealand must do to assist Great Britain. The cause is found in the war-time emergencies which simply had to be met through our clearing house regardless of any normal economic consideration. What is now required gives emphasis to the problems confronting the Mother Country. For in these times no nation can live within itself; that great lesson of the recent years must have been made perfectly plain to all people; and it has now taken the emergence of postwar serious economic problems to disclose how really great was Britain’s effort and to impress the task that lies ahead in attaining the recovery. When war broke out it was estimated that the United Kingdom had a net total of somewhere about £4,000,000,000 of overseas assets. Negotiable securities, especially dollar investments, were mobilised and used to obtain much-needed fundfe. But, as well-qualified commentators have stated, much of this expenditure did not figure, in the public eye, as Britain’s effort. Huge orders placed in the United States to provide aircraft for the defence of Britain were regarded generally, and classified as, part of the United States contribution. In the same way, the factories which Britain equipped in India to produce munitions for the forces that were to re-take Burma were accepted as part of India’s'contribution; but in both instances Britain met the cost, and now, it is definite, the Dominions must co-operate in the recovery, and in this there can be much cause for serious reflection in New Zealand. We have, at all events, come out of the war with few scars; our producing capacity has not, been seriously impaired, and man-power is being quickly made available. In general the standard of living is actually higher than it was on the outbreak of hostilities, and the surplus of spending power traces to the restricted imports. Generally, too, hours of work have been shortened, so that in comparison with the position of our kinfolk in Britain we emerge from the war emergency with few deterrents against a speedy trade revival. But we should not rest at that. Britain is our clearing house, and we cannot be indifferent, for we surely cannot be immune. It can—indeed, it would seem it must be—that for a time at least our buying habits must be disciplined to the needs of Britain, and it can even be that we will be compelled to forego much that has been claimed. It is repugnant to any conception of equity, for instance, that this country should look for continuing price adjustments which, at the expense of our British customers, are needed to hold at high comparative levels our standards as we know them. The savings in shipments by the diversion of shipping, necessary as it is to hold in better balance the exchanges, is actually a powerful reminder of other adjustments we may be called upon to make, for Britain is our clearing house and we cannot be so far removed as to escape responsibility or ito remain'immune from the economic struggle on which so much depends.