The Waikato Times With which Is Incorporated The Waikato Argus. THURSDAY, APRIL 28, 1932. PREFERENCE TARIFFS.

Waikato Times, Volume 111, Issue 18622, 28 April 1932, Page 6

The Waikato Times With which Is Incorporated The Waikato Argus. THURSDAY, APRIL 28, 1932. PREFERENCE TARIFFS.

In Australia some surprise and uneasiness has been expressed at the great falling-off in business between their country and New Zealand. Those who have not followed the actions of politicians may feel surprised, but no one who has watched the course of events can be so. Both countries, by the actions of their rulers have been active In suppressing trade. It is futile now to wonder why trade has so greatly diminished. The same mischievous tendency that has appeared in other countries to confine trade to the area standing under one Government has been strong here, and the fact that Australia and New Zealand are both members of the British Empire has not been allowed to stand in the way of the monopolists. For years the duties between the countries while, of course doing harm, were moderate in their mischief, but then came the brilliant idea of wheat duties on a sliding scale, with a minimum fixed at a figure ludicrously out of touch with the price of wheat for some years past. Australia resented this and looked about for a trade which she in turn could destroy. They were and are now paying an export bonus on butter, which raised prices internally and made a trade in butter possible, so that was stopped with a large increase in duty. Then they had a shortage of potatoes, and imported some from New Zealand. The politicians promptly stopped this on the plea that imported potatoes might spread disease so we retaliated by prohibiting imports from them on the same plea. The politicians now express dismay at the results of their own acts, but what did they expect? Even now it as not certain that they recognise the folly of their acts; it may be that ihey are ashamed to appear at the Ottawa Conference with such a record. Boih countries are suffering from depressed trade, and in both countries this has been rendered more acute by the ridiculous policy of the elected representatives of the people. \y e know that similar action in Europe and the United States has caused the most serious trouble, but that does not prevent us from following the same policy. The agreement made by Sir Downio Stewart and the Canadian Minister for Trade has now been signed by Canada. 'Plie history of our trade dealings with Canada is much the same as that with ■Australia, though Canada is certainly the chief offender. The change in the seasons made a trade in butter with Canada possible, so the protectionists of that country made this trade one of their arguments in an election campaign, and when they attained power promptly stopped the trade with a prohibitive duty. Mr Forbes immediately retaliated by cancelling the Kmpire preference which Canada had previously held. Al (tie time the action was generally applauded. It is not certain that people are much wiser now. yet the effect of slopping the trade with Canada lias injured both countries. A lilile diplomacy might have smoothed out the obstacles, but 1 his was considered In lie beneath the dignity of a Prime Minister. Now we are hoping that trade may be resumed, but it is doubtful whether the people of either country have teamed anything from the business. The idea

•still prevails that it is profitable to sell but unprofitable to buy, and it is not recognised that one cannot be done without the other. Tho wheat duties in this country have been denounced by every independent authority, yet they persist to the detriment of Hie country. It is a testimony to the strength of the party system. Canterbury members, whichever party they profess to belong to, are in reality representatives of the wheat duties, and the parties are unwilling to alienate their votes. Wheat growers are paid 4s 6d a bushel though the price in Liverpool or Chicago Is under 3s. Improvements in technique have made it possible to grow wheat in regions further north in Canada, and in districts in America where the rainfall is slight. It is doubtful whether wheat will ever stand again as high in proportion to other commodities as it did. For the sake of these Canterbury votes bread •is 50 per cent, dearer than it should be, and large numbers are on 'the bread line. For the same reason v.c have destroyed two-thirds of our trade with Australia. Dairy farmers have been sacrificed to wheat growers. For the same reason we cannot establish a pig industry, though It is one that •should be carried on with dairy farming. For the same reason poultry farming languishes. We pay more in this country than we should for bacon and eggs, and our exports of both which should be large are small. All these sacrifices are made on behalf of one province, which is a standing example of the harm done by protection, for while the districts which contribute to this favoured area can show some progress the area itself persistently stands still. Its one successful pursuit is lobbying.