A DUMPING DUTY.

Waikato Times, Volume 118, Issue 19661, 22 August 1935, Page 9

A DUMPING DUTY.

(To the Editor.) Sir, —We all know that one of the main objections of Conservatism in regard to an “internal price” for primary produce that will cover the costs of production, plus a reasonable profit to the producer, is that Britain might put a dumping duty on our produce. It will be of interest to your readers if wo oxamine this particular “bogoy." A dumping duly usually consists of the difference between an “internal price” in the country of origin and a lower price for that produce exported to another market abroad, the reason for such a duty being an attempt by the importing country to preserve the "price level" for Its own producers. Such an expedient cannot succeed for any length-of time, the inevitable result being hardship and suffering among the people, because no country has purchasing power to ■moet the financial costs of production. A dumping duty is therefore a twoedged sword that may do as much harm to the country using it as it does to that it is being used against- Tho writer is of opinion that we could afford to smile at such a threat in the unlikely event, of one being made. It is well to remember that we have upwards of £40,000,000 sterling standing to our credit in London, doing no good to anyone— suspended purchasing power that oannot be used because Insufficient money has been created in New Zealand to enable the goods represented by those London credits to come to New Zealand and pass into consumption, to the detriment of both British and New Zealand trade, If Britain attempted to impose a dumping duty she would be cutting her own throat, as her own export trade would suffer to an equivalent extent. I repeat that we can smile at tills imaginary difficulty. It is not proposed to create money backed by air, with the sky as the limit, hut by good New Zealand produce, valued at a price that will return to the producers thereof "their costs" plus a reasonable proflt. The vital question all electors must decide for themselves in the next few months is, do they want a stable price level In New Zealand to meet New Zealand costs comfortably; or are they satisfied with present chaotic conditions Inseparable from our economic system, based as it is on an overseas “price level" that Is affected by the policy of private banks over which there is no vestige of national oontrol? This will be the burning question, and polling day decides whether New Zealand is once again to be known as "God’s Own Country," a free and prosperous nation, giving to all its people an ever-improving standard of living and at the same time welcoming to its shores kinsmen and women from overseas less fortunately situated- To ensure this desirable state of affairs all candidates for parliamentary honours must be cart fully culled, and only those supported who are prepared to pledge themselves to restore the natiori’s -sovereign right to the control of money in all its forms. - Sentiment and old party ties must give way to the great national need for fair and fearless men who understand the fundamentals of money.— I am, etc., R. G- YOUNG. Gordonton, August 18, 1935.