THE WAR AND TRADE.

Auckland Star, Volume XLVI, Issue 67, 19 March 1915, Page 7

THE WAR AND TRADE.

§ * BOW XEW ZEALAND IS j AFFECTED. * CTUATION REVIEWED BY THE PRIME MINISTER. (By Telegraph.—"Special to -Star.") WELLINGTON, Thursday. '•-"" New Zealanders have no reason to be ashamed when they look back over the ■even or eight months of stomi and turI moil since the war began, remarked the Prime Minister to-day, addressing members of the New Zealand Club. He gave a rapid review of events during that period, paying particular attention to the effect of the war upon our trade. On the declaration of war, said Mr. Massey. there was a {rood deal of uncertainty and stagrnation in business, but only for a few days. Even during the dark days of the retreat from Mons there was a feeling of confidence that things would change for the better, and they did. The war had not seriously affected • Xew Zealand, but it had. of course, an important bearing on our trade. The first matter was the decision of the Imperial authorities to commandeer 10 per cent of the world's shipping. Then it must be remembered that 14 per cent of the world"? shipping belonged to the enemy, and that it was all out of business now. Thus a quarter of the shipI ping of the world had been taken away ■from it* ordinary use, and there was a very great deal more business than usual for what was left. His hearers could thus see that under the law of supply and demand increases in freights could mot be avoided. He gave "lis own experiences in attempting to get a -reasonable freight for wheat purchased by the Government in Canada. The first purchase was carried at £8 per ton. Then it became necessary to make . another arrangement, and the first offer was £5 per ton. The High Comrais- . sioner obtained another offer of £4. As a fannpr he had "Town wheat and sold j 'tat £"> per ton. and he hoped it would _ not be necessary to have to pay that price to get -the wheat of this season's Canadian crop over which the Government had obtained an option. •■ • COMPARISON IX WHEAT PRICES. The wheat imported from Canada cost 6/ per bushel, and another 2/ tor freight. As for wheat and flour prices in Xew Zealand, it must be admitted that people had reason to complain. However, wheat to-day was standing at 6/9, but in Australia, leaving out Xew South Wales (where there was a surplus), they were paying 8/3 and 8/4 in •Melbourne, and S/6 in Tasmania. Thus -we had not a great deal to complain about compared with other countries. Unfortunately the same difficulty had occurred in regard to oats. It was impossible to get away from the figures of -the Registrar-General. They showed that there would be a shortage unless •the Southland crop turned out particu--aarly well. It was a kite crop, bin -seemed good, the only trouble being the "risk of bad weather. After two or --"three steamers, now loading oats which --were on the -trucks at the time of the ■Government's decision, no more oats would be allowed to leave Xew Zealand unless the Government was satisfied that there would be a surplus. The Government realised early in the war that there would be a shortage of wheat, and it arranged for the purchase of 100.000 "iras-hels from Xew South Wales. Had it not been for that supply we should. ■"to use a colloquialism, '"liave been up -gainst H." This supply came in tbe aiek of time, otherwise we would have lad to do without for a little w-hile. PATRIOTISM. XOT PROFIT. In regard to the meat business, be •wished to compliment the people, connected with the trade upon the fact that ■there had not been a Bingle hitch in running the arrangement. Merchants and exporters had. -he knew, suffered hardship through loss of trade connections, iut he was bound to say that the merchants, meat exporters, farmers, and -hipping people who met him to consider "the matter showed more anxiety to assist the Empire than to make money for themselves. "I do not say we are Hot paying a fair price." continued the "Prime Minister. 'The payment is based, not on the speculative prices prevailing during the previous few weeks, but upon the current prices for the three months .prior to March Ist." KEEPING UP EXPORTS. The speaker referred to the vital importance of keeping up the country's exports. He lad much pleasure in an--ouncing that during the present season New Zealand had exported frozen meat Talned at five millions sterling. This "record could not be kept up. owing to the difficulty in securing sufficient insufated ships and freezing chambers to •op? with .the unprecedented rush of •tock to the freezing works owing to •the drought in several provinces." In other ways the trade of the Dominion iiad been affected by the war. New Zealand had exported" an average of half-a-million sterling worth of kauri gum annually, but the bottom dropped out Of the market when the war started, and the Government had had to prevent the gumdiggers from coming on to the ranks of the unemployed by advancing them half the value of the gum dug. It was also employing a number on day wages to dig the gum lands to a depth of five or six feet to extract gum and prepare the soil for fruit culture. The officer in charge of this work had """■formed him that the amount of gum obtained would pay for the cost of this WOTk. The Government had not been able to do much for. the flax industry, hirt he was glad to say that mills which were closed down at first were now working again. The timber industry fcad also been adversely affected, but this, too, was reviving. WTLLIXG TO DO MORE. An outsider visiting our pleasure resorts on St. Patrick's Day would not realise that we were engaged in war. New Zealand had hardly realise"! that ■the Empire to which it belonged was concerned in the most serious war in Wstory. He wished, however, to give credit where it was due. He was prond of the response to the many appeals for issistanee to matters connected with the ""ar. New Zealanders had been sending £25.000 -per month to relieve distress in Selgium. This country was spending directly on the war £300.000 per mon thi oi £.1,800.000 p»r annum. The bill "*»uld be more in future, as more men """"re going to the front. This expendi*nie had to be fated, and he did not say It vas too much. "T would like pcrson-""3-"to t do more." continued Mr. Massey. ant if tbe Imperial authorities would -"indicate some direction Tn which it may he possible to do more to help in this t crisis, e-pery citizen In "ff-tw-Ze-Jaiid i WKdcLbe -wining to do It," '■■