Western Star WALLACE COUNTY GAZETTE. FRIDAY, OCTOBER 28, 1932. IMPERIAL TRADE AGREEMENTS.

Western Star, 28 October 1932, Page 2

Western Star WALLACE COUNTY GAZETTE. FRIDAY, OCTOBER 28, 1932. IMPERIAL TRADE AGREEMENTS.

The agreements arrived at by the Imperial Government and til© various British Dominions were keenly but shortly debated by tbe House of Commons. Less time spent in theii consideration than was occupied by the New Zealand Parliament. In both legislatures the same parties raised objections to their ratification. They represented labour, but while the objection in the British Parliament was the taxation on food, in this Dominion the objection was to the decrease in protective duties to afford assistance fo local industries. British labour objects to the abandonment of tile policy known as “the free breakfast table;’ New Zealand labour seems wedded to the high protective policy which lias proved and is proving so disastrous to the producing interests of the Commonwealth. The Imperial Government, however experienced no difficulty when the Bill dealing with the duties went to a division. It wa s carried by an overwhelming majority, the voting being 450 for and 85 against, the labour party being re-iuforced by a number, certainly much smaller than was anticipated, of old liberal free traders —men of the Cobdeii-Bright school. The success which attended the second reading gave universal satisfaction to the industrial classes, who consider the new duties will bring a very substantial trade revival and lead to the absorption of numerous unemployed. Great Britain i s a manufacturing country, and prosperity depends upon its imperial and foreign trade. It cannot and never will be able to produce a sufficiency of primary products to supply its population. Hence, a s its population is overwhelmingly industrial its policy must be directed maintaining tbe wheels of iudustrv in constant. motion and at tlie same time ensure that its food supplies shall bear a just relation t 0 the wages paid. The reverse of this is true of New' Zealand. It is not a manufacturing but a producing country and its prosperity depends absolutely upon the success of the man °n the land. If lie is doing well all other interests are flourishing. If be is depressed as tbe present slump abundantly demonstrates, the whole country suffers, as it lias been and is suffering to-day. And we can not expect Great Britain, to take our primary products if we fail to purchase thoir manufactures. Trade must be reciprocal. The New Zealandi labour party ignores tbi s aspect of the question, considers local industries should have first consideration, and aims at making the Dominion self-sufficient so far as manufacture is concerned. This would mean the maintenance of a high protective policy with high-priced goods, and high-priced goods mean a reduction in wages, wages being relatively high or low according to their purchasing power. Five pounds a week with clothes at five guineas and boots at thirty-five shillings i s not a s good us four pounds a week with clothes at three pounds ten and boots at a guinea. The imposition of duties however, by the Imperial Government has opened tlip flood gates of controversy, and the old question of free trade versus protection will be fought out again just as keenly as in the days of Cobden. In fact, it is safe t n say that it will be the predominating question at the next General Elections in Great Britain. Mr Lloyd George lias already voiced tbe frqe trade objections from tlie public platform to taxat'op on food, and the great free trade organ, the Manchester Guardian, has raised the voice of opposition. Tli e view of the New Zealand labour party was given in the House of Representative* during the recent debate. One of tlie Christchurch members said “If this I agreement is ratified, as I have indoubt it will be. 143 girl s in mv elec-

toratc will at once lose their jobs and £lO 000 worth of machinery will be made idle.” They are employed in the artificial silk industrv. Continuing, he said that New Zealand had come awav from Ottawa poorer than she had gone there. She had not only agreed to give British manufacturers a place as

domestic competitors Avith the Ho-’ minion’s goods, but sli 6 had given away her liberty to create new industries. The only saving clause in the whole agreement ivas that which limited its application to five years, for unless the Government proposed a further extension of its own life the problems inevitably developing from the Ottawa agreement would be fought out before then on the election platform of the country. Opposed to member s outlook was the member for Otago Central, who expressed what is the producers’ viewpoint. ■ “Protection, Mr Bodkin, said, “avq s a diect attack on the wages of th e people. A protective tariff for the boot trade, for instance gave benefit only t 0 those people engaged in that industry. Protective tariffs added substantially to tlie cost of living. One of the lessons of the present slump that had been shown most clearly in the United States of America was that high tariffs had aggravated the depression. When it came to a fight between Freetrade and Protection the Freetraders were at least people avlio Avere fighting for a n ideal. On the other hand the Protectionists represented selfish vested interests, interests that benefited themselves at- the expense of other sections of tlie community. The shortest cut to end the depression, lie was assured, was a scaling doAvn of tariffs all round. Mr Bodkin said he Avould even lik© to see a little more given away in preferences, because he was satisfied that industries in New- Zealand had been given too great assistance and had, in addition, a favourable exchange of 10 per cent. It Avas nothing but hypocrisy for New Zealand to talk Freetrade to Britain wliile she maintained tariffs against Britsh goods.” But there arc industries. large ones, that will not he adversely affected by the agreement. Mr Coates said—“ From the information Avhicli lias been supplied to me, in some cases even by manufacturers themselves, it is difficult to resist the conclusion that there are industries in NeAU Zealand upon Avhicli the protection is too high, and that i n the case of others the removal of tli© substantial tariff assistance at present granted Avould, be an advantage to the whole community.”