GERMAN TRADING IN TONGA.

Auckland Star, Volume XLVII, Issue 169, 17 July 1916, Page 8

GERMAN TRADING IN TONGA.

EXE3IY FTRMS TO BE CLOSED DOWN. (From - Our Own Correspondent.) NUKUALOFA, July 7. Following close upon the action of the British: Consul in Tonga in connection with the liquidation of the D.H. and P.G., otherwise known as the "German Firm." the other German traders in the Group were informed that their business operations in the Islands must cease. But, apparently, and no doubt owing to the peculiar local trade conditions, these business houses will not close down immediately. They still carry on, but stocks are gradually being depleted. In come instances the goods are being taken over by some of tlie British tirnis. How long this present arrangement will continue is not known, but at the moment it appears to suit local convenience. Although presumably still trading, these enemy firms arc pro--hibited from further importation of goods, so the end for them is well iii sight, and it should not be long before Mr. Aldred, the liquidator, closes their accounts. It has to be remembered that, owing to hurricane visitation and other disastrous climatic disturbances during the past fourS'ears. local trade conditions have not heeri of that buoyant nature which turns the island traders' frowns to smiles, and consequently there has been very little copra coming forward. Copra, as is perhaps known, is the backbone of industry in this group. We have other products, but just now they are not in sufficient quantity for export at agreeable prices. With the tremendous shrinkage in the output of copra in recent years, the spending power of the community is not as business people would like it. Money is certainly scarce, and it is. perhaps, on this account that the German trader still carries on. for if these firms were put into immediate liquidation, thr stocks no doubt would come into thr hands of the public at jrreatly reduced prices, and as a result the British trader would feel the brunt of thinprs. So far as can be ascertained, the British trader views the position from this standpoint, and does not raiso stronjr objection to the present proceeding, knowin? that the enemy traders will soon quit business.