WORLD TRADE.

Waikato Times, Volume 114, Issue 19117, 30 November 1933, Page 9

WORLD TRADE.

SHRINKAGE IN VOLUME. PLANS FOR RECOVERY, - BRITISH AGRICULTURAL POLICY. “It is estimated that the reduction in the volume of international trade since 1929 has been about 30 per cent and in value about 65 per cent,” said Mr T. Buckland, chairman of directors, at the annual meeting of the Bank of New South Wales in Sydney, on Tuesday. . "A continuation of this process must .still further reduce prices, lower business turnover, increase unemployment, and ‘sap the sources of government revenues. The urgent need is for the lowering and removal of all such barriers, so that the flow of world trade may be mcreased both in volume and In speed* “This was the problem, the seriousness of which made necessary the holding of the World Economio and Monetary Conference in June and July of this year. It was soon found that agreement on these essential Q ue s _ tlons could not be reached among the sixty-six nations represented at the Conference. Confidence was still lacking and mutual suspicion prevented agreement on anything but further restrictive measures. The 'war debts and reperations problem, although dead to all intents and P ur ~ poses, could not be buried; its ghost ' still haunts the debtors. Raising Price Levels. "The Conference then turned to consider the raising of price-levels. To increase the prices of primary products in the markets of the world would reduce the volume of the exports of the primary produolng debtor countries needed to meet their debt commitments. . This reduction in real v indebtedness would leave a ■larger volume at higher prices, the proceeds of which would he available to purchase the manufactured goods of the creditor countries. The Improvement in the creditor, country would enable it to absorb a larger .quantity of the exports of .debtor countries, producing action and reaction working in the opposite directlon towards a growing internaional “The Conference ended, without being able to agree upon any plans to bring about this essential change In the outlook. Indeed, its first-fruits seem to be an increased nationalism reinforced by attempts at international control of production and marketing. The Wheat Agreement is a striking example. To countries which are young as far as the' history of the world goes, only partly developed and carrying heavy external commitments —countries"such as Australia and New Zealand —such schemes must prove disastrous. These countries must expect a growing share of world trade, in such a product as wheat, if they are to continue their development -’■6a sound lines. Policy In Agriculture. .. ■' "It is needful , here that I should make some reference to the new agricultural policy of Great Britain, which now seems to have taken a lead from Continental Europe. There can be no oritloism ,of the desire of the 'British people to guard their agricultural industries. But our .kinsmen in the Homeland may not overlook the fact that should the development of their agricultural policy reaoh a point, at vyhich they would wish to exclude to any extent our exportable products from the British market, they must automatically reduce our capacity to buy British manufactures. It would pe possible even to destroy it."