The Waikato Times With which is Incorporated The Waikato Argus. WEDNESDAY, May 19, 1926. WOOLLEN MILLS.

Waikato Times, Volume 100, Issue 16800, 19 May 1926, Page 6

The Waikato Times With which is Incorporated The Waikato Argus. WEDNESDAY, May 19, 1926. WOOLLEN MILLS.

The woollen manufacturers in New Zealand apparently desire to approach the Government with a request for further protection for tlicir Industry. They claim that New Zealand mills manufacture a wider range of goods than English manufacturers, whose industry is much more specialised. They give impressive figures of exports from Britain to New Zealand and show that these are increasing, and finally they complain that no greater protection is given than when wages < were half what they are at present and the hours of work were 50 per week. They blame the retailers for not giving them all the support they might and suggest that higher profits arc made on imported goods. As their sad case will probably come before the House at an early date it is worth enquiring what their arguments amount to, although it is of course possible that the Minister will grant the extra taxation without troubling to bring it before the House. To take the lirst item that English manufacturers specialise to a greater extent than is done here; there is no doubt that this is so and that the result is to give better value. It might be done here to a small extent, but the trouble is that our population is too small to afford an adequate market. Jn consequence of this specialisation English prices arc lower than ours, and it would require very heavy duties lo keep out British goods. The duly at present is not light, being 22 per cent, and Hie landing charges bring this up to 30 per cent., If the locally-made article cannot compete with 30 per cent advantage over the imported there must be inherent reasons to explain the failure.. The imports have increased for various reasons, of which one is that the Government have been steadily borrowing at Home. Instead of asking for more protection the woollen mills should ask the Government to keep off the London money market. Another reason for increased importations is dial until recently our exports cxcccdod our imports in value by a large amount. Now that the balance lias turned ,wc shall And the imports shrink. The chief reason, however, why local manufacturers And it hard to compete with Home manufacturers is that they have returned to a gold standard in Britain and wc have not. Prices are failing at Home and they arc not falling here. It is quite true that we could for a time exclude British gqods, hut it would require very heavy duties, and if these duties were general prices would again rise and importations slat'l once more. Customs duties alone arc not suAicient to make an industry successful; indeed they oflen have an equally contrary effect. There must he an adequate market, and prolection must lie limited to a small number of articles. The United Slates is constantly pointed lo as an example of the success achieved by protection. It is overlooked that there is complete freedom of trade throughout the country and that this assures a market of over one hundred millions of people with much money to spend. Protection in that country lias made the fortune ol' many men from Andrew Carnegie downwards, but it is lias done it. by taxing oilier moil. The advocates of protection always hold out ihc promise that prices will not rise, but Ihc Host, comment on Ihal is Ihal iiicy arc constantly demanding further prnteelion. They I uek up this demand with such stalem,oils as Ihal wages are higher and hours are sliurler Ilian they were. Surely Ihev are aware dial lliis is Hie same in England. The argtiiucnls against proleelion are Ihal, II helps one ln| of people si I lie expense of another. The people who pay lor il are largely Ihc producers, who are already handicapped by our paper slandard ami are j nol in a position lo sland further imj posts. The woollen manul'aeliirers like Ihc farmers are suffering from Ihc fluty on wheal and Hour which lias raised wages for everybody. 1 1' we try lo remedy that mistake by making similar mistakes over oilier goods we shall have lo take as our national ein- , blein the kitten chasing its own tail.

r _. Apart from the question of proteclion, which really is' not so important ns manufacturers think, there arc certain points connected with ttic woollen industry which to an outsider seem worthy of attention. If the local mills attempt to produce tweeds and serges they come into competition with England where the industry has been carried on for centuries and is more highly developed than in any other country. The quantity of material is small in value in these goods compared with the workmanship. There are, however, other goods in which our initial advantage of wool grown in the country is an assistance. The travelling rugs made in New Zealand will compare with any to be obtained at Home or elsewhere, When the American fleet were here in 1910 they cleared the warehouses and the mills. They may have done the same last year. In the same way the locallymade blanket will compare with (hose made at Home. It should be worth while for one of our woollen mills to open a shop in the West-end of London for the sale of rugs and blankets; pure wool, no shoddy, produced in the Dominions. If Ibis were well advertised, and Mr Amcry were invited to lend it his blessing it should he a success. It would help the industry, help the woolgrowers, and be an evidence of business enterprise. Such a course would be much better than besieging Government with demands for an increased taxing charter over the public.