TRADE AND FINANCE.

Auckland Star, Volume XLIV, Issue 57, 7 March 1913, Page 7

TRADE AND FINANCE.

IS THE DOMINION PAYING ITS •WAY? A NECESSARY EXPLANATION. (By Telegraph.—Press Association.) WELLINGTON, Thursday. A good dnal of adverse criticism has been arouaed by a statement on the financial position of New Zealand made by Mr A. E. Mabin (president of the Chamber of Commerce) when giving evidence before the Dominions Royal Commission on Wednesday. Mr Matbin told the Commission that the country was not paying its way to the extent of four millions a year, and that its financial position was not sound. Under examination by Sir Rider Haggard he stated that the prosperity of this country was not what was generally recognised. Yesterday afternoon Mr Mabin attended the Bitting of the Commission and made the following explanatory statement: "Regarding some remarks in answer to questions made foy mc at the sitting yesterday regarding the relation of exports to* imports, more may be read into my answers than I intended. Whilst it is a fact that our exports at present are insufficient to pay for our imports, together with our interest obligations, yet I do not consider that the Dominion is in any financial danger. The heavy imports of recent years may be largely attributed' to importations for works undertaken by the Government and local bodies, and are in the nature of capital expenditure, which will in the course of a few years bring in an adequate return for the outlay. In the meantime trade returns do not look well, but there is no reason to think that the capital expenditure represented by a considerable portion of our imports •will not show a better return and tend to increase the volume of our exports." LateT in the afternoon Mr David J. Nathan furnished the following statement on the subject of the country's finances: "Mr Mabin has made statements—speaking, a 6 he says, for the commercial community—that the Dominion is not paying its way, and that no industries are being developed. If Mr Mafoin's statement is correctly reported, I, as one of the merchants of this city, a director of the Bank of Nerw Zealand, and a past president of the Wellington Charaher of Commerce, desire to have an opportunity of placing on record my statement that Mr Matin's remarks would be confirmed hy scarcely any other commercial man in New Zealand. It is quite true that the Dominion fior a few years past has suffered from statements of a similar description made by politicians for party purposes, hut none of us here have ever treated these statements seriously. The present Government, in a statement to the London press a month ago—when they invited subscriptions to the last loan—gave an optimistic, yet true, account of the national position of the Dominion. In face of this statement by the Government, which is only confirming statements made hy the "previous administration, I fear that Mr Mabin, clothed as he is temporarily with the position of president of the chamber, has allowed the remarks he is reported to have made to be giveh rather too hurriedly and without proper consideration. It would not be opportune, to go into this matter in any great detail, but a glance at the official Year Book of 1012 will show that in every walk of life the Dominion has progressed, and we know ' it is -progressing in every sense of the word."