AS OTHERS SEE US

Waipa Post, Volume 44, Issue 3190, 14 June 1932, Page 5

AS OTHERS SEE US

THE WORLD STRANGLING ITSELF! GLASGOW I JOURNAL'S ■; CRITICISM. REPLY BY "TE AWAMUTU." A former resident of Te Awamutu, now domiciled in Glasgow, has forwarded a copy of the Glasgow Sunday Post, dated Ist May, wherein is a fullpa«e article headed "The World gangling Itself !—Britain's Chance t(T'l[Jse the Shears." The article is very interesting, particularly the (reference to New Zealand—so much so that we publish the following extracts:— Britain's imports for the first three months: 1931, £209,000,000; 1932, £193)000,000—down £16,000,000. Britain's exports for the first three months: 1931, £103,000,000; 1932, £92,ooo,ooo—down £11,000,000. Total foreign trade—imports plus exports—down £27,000,000. Britain joins the World Trade Strangulation Society. Take another example: New Zealand. Exports, 1930, £44,000,000; imports, £45(000,000. Imports over exports, £LiOOO,OOO. " This margin is not a safe margin for New Zealand which has big paymentis to make against loans other services.

"New Zealand gets its microscope on the export and import factoir, and decides that imports for 1931 have to be cut. "In 1931 imports are cut to the tune of £20,000,000— actually 42 per cent. "The idea of cutting imports is to get a bigger surplus of exports over imports—to make a bigger profit on the business company called New Zealand.

" But what happens to the exports , ? i " Exports in 1930 were £44,000,000; • in 1931 they tumbled to £35,000,000. " New Zealand has achieved a favourable trade balance of £9,000,000. But at what a cost to New Zealand and the rest of the world ! "New Zealand has lost exports to the value of over nine millions sterling, flrobably meaning five millions of wages. " The rest of the world has lost £20,000,000 of trade in goods sold to VNew Zealand. "The loss to world trade both ways is £29,000,000. " New Zealand qualifies for the medal of the W.T.S.S. (World Trade Strangulation Society). " Picture this kind of thing happening all over the world. Every nation struggling to cut down its imports/ and succeeding. Struggling to increase its exports, and mostly failing. Wherever imports are cut exports assuredly fall. " So the strangulation of the world trade goes on. So unemployment paralysis grows. " Even tariffs have not been sufS cient to lock some of the trade dooai tight enough." The Sunday Post goes on to refei' to "the instrumbent of torture called the Quota;," which it says means " the ■4 dead limit! " . . But we are-more concerned with the foregoing references to New Zealand, and it is pleasing to find that "Te Awamutu" answered them in the next issue of the Sunday Posl with the following letter to the edit. or: " Sir, —l n your issue of Ist May I observed an article on exports and imports not at all complimentary to New Zealand. "You. state that in 1930-31 inclusive exports were down by £9,000,000 and imports were cut to the tune of £20,000,000. " As one who has recently returned from New Zealand may I suggest that, instead of condemning, you should rather take off your hat and compliment a little colony for keen economising to pay her way ? "You omitted to state that world ,* prices had slumped. For instance, in 1930-31 wool had dropped from Hid per lb to 41d per. lb; lamb and mutton by 3d per lb; and butter and cheese by a like amount. "On a rough basis, these work out that, but for the slump, the value of the exports would have been up to normal. " Under the circumstances the Gov-

emment was complelled to restrict and economise to the utmost •to meet overseas debts. Do you not think this wise policy to be 1 commended ? , . "New Zealand is the youngest and I need scarcely add, the most loyal colony we have. The population is one and a half millions. In war debts she pays Great Britain annually £1,746,000), in addition to other loans, etc. " How can such a young colony keep this going if not (with the rest of the ■world) by keeping down imports ? " Perhaps the Ottawa Conference may help to clear the air. Should -v any untoward collapse take place, it ' 'may end in a'complete break-away of all the colonies. " But, as Mr J. H. Thomas has reiterated, ' the Ottawa Conference is going to be no damned failure.' The writer's endorsement is ' Amen ! ' " The. editor attaches the following footnote; — ~.,,, ,_ , + "We gladly publish the above letter The drop in prices does account for some reductions in imports and exports. Figurej from the League of N>f&ms' statistical bulletin show that NW Zealands' imports in 1931 were d'own by 600,000 tons, and exports wea-e down by 108,000 tons.