DEPRECIATED CURRENCY.

Waikato Times, Volume 100, Issue 16817, 8 June 1926, Page 5

DEPRECIATED CURRENCY.

FRENCH ADVANTAGE. LONDON, June 6. The Financial News says eases have been brought under the notice of the Federation of British Manufacturers' representatives in New Zealand finding a difficulty in competing with French firms owing to the withdrawal of the protective legislation. 11 is hoped that the Dominion Government may be persuaded to take action. MINISTER APPROACHED. NOTHING TO SAY AT PRESENT. (Times Correspondent. Wellington, Monday. A cablegram received to-day from London states that, notwithstanding the preferential tariff, some British firms are being undercut on tho New Zealand market by countries with depreciated currency. French Arms are mentioned in particular asi bcueliting as a result of the depreciation of the franc. Tho law of New Zealand gives the Minister of Customs discretionary power, subject to a scheduled scale, to meet under-cutting from countries with a depreciated currency, but no such duty has been imposed in Now Zealand since April 9, 19"25. The power vested in the Minister is inoperative when it is repugnant to an existing treaty, but there is no such treaty witli France or Belgium, but there is with Italy. One of the difficulties of enforcing depreciated currency duties is the variable character of the exchange rale. Another is the possibility of retaliation, while factors such as the balance of trade cannot bo ignored. For instance, New Zealand in 1925 had a more favourable trade balance witli Germany than with any other foreign country.

New Zealand's main import from France is .silks, pure and artificial, and that country also sends woollens, clothing, drapery, motor tyres, and toilet articles.

The cable was referred to-day to the Minister of Customs (Hon. \V. Downic Stewart), who said that lie had nothing to say on the subject at present.