FRIDAY, JULY 1, 1887.

Auckland Star, Issue 153, 1 July 1887, Page 4

FRIDAY, JULY 1, 1887.

' People who believe that a country is most prosperous when its exports exceed its imports will be somewhat puzzled by the trade returns of New Zealand for the past few years. The depression last year was probably the most seySre experienced by the colony during the last decade, yet the statistics for that period show that the imports and exports were, more nearly balanced in 1886 than in any year of the preceding ten. In 1887 the ex,cess of imports over exports was over j in 1887, it exceeded ; in 1879, it was more than in 1880,* ,£1,100,000 ; in 1881, j£M00,000; in 1882, ,£2,000,000; in 1883, in 1884, in 1885, but in ISB6 the difference was. only the imports being ;£6,759,013 and the exports The explanation is simple. The lower values of imports were due to'diminished'purchasing power, and were thus an effect of; the depression — not its cause. Tthey were also due in no small degrees to the decreased values of the imported articles—-a consequence of the severe depression that prevails in. all othe.r the \world, and of the appreciation of gold, the goods imported.;

representing a smaller sum in! coin than before.

These returns, bring out some interesting facts regarding New Zealand's trade with the sister colonies of Australasia. New South Wales is a long way our best customer. We exportedjto that colony in 1886 (including £178,043 "worth oi gold) goods to the value of £822,361, and the imports thence were valued at From Victoria the imports were £607,798, and the exports £663,896, but of the latter £400,846 were represented by gold. Of general New Zealand merchandise, chiefly home - grown produce exclusive of gold, therefore, New South Wales took from us .-/,644,315, and Victoria only ,£263,050. Our trade with the other colonies is thus represented :— Queensland, exports £92,560, imports £35,729; South Australia, exports £45,951, and imports £22,319; Tasmania, exports imports Taking the five great colonies named, the total exports from New Zealand were £1,688,464, and the imports £1,315,956, leaving a balance in our

favourof but it must be borne in mind that included in the New Zealand exports was gold to the value of £578,889.

The smaller export trade to Victoria than to New South Wales is not wholly due to the Protective policy of the former colony. The agricultural industry being much more advanced there, the people really require less imported grain and dairy produce than the older colony consumes. One might naturally expect, however, that New South Wales, enjoying free trade and dealing so liberally in our produce, could have run Victorian merchants off in competing for the supply of those miscellaneous articles of merchandise that make up the bulk of the intercolonial imports. A perfect system of drawbacks, however, and an arrangement of the tariff so as to press heavily only upon articles which the colony can produce, has 'enabled the Melbourne merchants to hold their own in the keen competition for the trade of the southern colonies. The chief items of export from New Zealand to Victoria are oats and timber, while our imports extend over the whole list of general merchanise. Of drapery alone, we imported £12,091 from Victoria, and only £3,239 from New South Wales. The Sydney merchants should look into this, and show a little more energy in pushing their trade. Naturally the colony would deal more freely with a colony that opens wide its ports to our producers than with one which does very little exchange business with us, and if Free Trade confers such mercantile advantages as its champions maintain, the predominance of Victorian merchantdise in the New Zealand markets is due solely to the greater energy of its trading community...... , r .