FAIR AND BRIGHTER.

Auckland Star, Volume LIII, Issue 125, 29 May 1922, Page 9

FAIR AND BRIGHTER.

NEW ZEALAND'S ECONOMIC CONDITIONS. EXPORT- AXD IMPORTS TO I'NLTED KTM3DOM IT. Mil. DAI.TOVS I>rPRK«StOXS. (From Onr Own Corresroudent.) T.-ONlloN". April 20. The report «i Mr. "Daltou. H.M. Trade (■,,mnii--;"]HM-. i- imw nvaililbk , in the "Bn.Til "• I'rii'lt , lotininl," and it is, while imi i>; : iini-1 i<■- not depressed, lie enys:- "1 : "" quite -:i;i-lied that tlic true vaiiM , of New Zealand's depression was. i" th.> lir*t place, oxer-importation apain.-t a former apparently favourable balance of traiU , . whirh in reality was miifavouriiWe. and. in the second place, the fact (hat by terrua of the Imperial Government purchases New Zealand had received what may be called its salary for a. period in advance, and for a time. when values were falling heavily, had to carry on with no new income coming in. The stati?tics show that, looking at Xew Zealand ns a whole, production and exportation have not suffered, and this must surely be the true guide to the real position. As a primary producing country, and taking into account the world shortage of stock of all kinds, New Zealand must, as world conditions improve, recover something at least of the prosperity which she experienced during the war, unit during this period she will bo able to pet breathing space to the lessons which the past Jew years have taught." DErKE*FIOX EXAGGERATED. Mr. Dalton speaks in even a firmer tone "hen lie says: —"'lt would not be at all deririilile to Wider-estimate the true importance of the set-back which New Zealand ha- had. but one cannot help feeling that the extent of the depression has been grossly exaggerated, not only abroad, but in the minds of New Zealand interests themselves. The key to the posit inn is. of course, the phenomenal increase Vn the value of land as a result of war prosperity, the difficulty of making these lands pay at lower prices for produce, and the existence of heavy mortgages, on which interest has to be paid. The last is undoubtedly the greatest difficulty, and the Government lias legislated to give relief to farmers to get over tin- dilliculty. The necessity for making high-priced lands pay at lower prices will unquestionably lead to better means of production, and it has been by no means proved that under better conditions of production and distribution the lands of »w Zealand, even at the phenomenal prices at which they have changed hands, cannot be made to pay in normal times. The true deciding factor as to New Zealand's economic position must l>o the return which the Dominion can secure abroad for her produce, and it has been shown that looking at New Zealand as a whole there has been little to complain about on this score even in a year which is said to have been one of the worst which New Zealand has ever experienced. To imagine that New Zealand could be '"ruined* , as some people have suggested is ludicrous. Even before this depression had really hit the Dominion prices for her main products had begun .to rise, and indications now are that a very detinite and important improvement has set in." UNITED KIN'GDOjrS STtABE. In discussing the exports of 1921 he gives an interesting table showing that the United Kingdom share shows an increase of all but 10 per cent over that of IP2O, while the United States show just that rate of decrease. Australia is the country which continues to get most nearly what it had in 1920. With regard to details of tne exf It trade, he eaye: "The fall in of wool has, of course, been of chief lanportanoe, but the loss in returns from this trade has been much more than lounter-lialance 1 by a rise in value ot dairy produce exported. It may therefore reasonably be asked what has brought n'bmit the general feeling of depression which has undoubtedly existed in New Zealand during the past year, and looking at the statistics alone, it is difficult to find an answer. Wool, of course, has always 3>een the most important produce of New Zealand, and a fall in prices such as was experienced early last year could not help but have a very depressing effect on New Zealand as a wiiole. Rut the supremacy which wool has always had is gradually being replaced by a supremacy of dairy produce, and there seems no doubt that developments in the. future will be in the direction nf milking the dairying industry l.v far the most important industry of the Dominion. LOS-ES AND COMPENSATIONS. The returns from this trade have been infinitely better in 1931 than 1920, and have very much more than compensated for the loss in the returns from wool. It would seem, therefore, that, taken as a whole and looking at the position solely from a statistical point of view, there should have been very much less cause for complaint than most people imagine. There have, of course, been exceptional conditions in the dairy trade which have to be allowed for in considering the returns for the whole year. The niost important of these is the fact that the Imperial Government purchased the whole supply up to 31st March, ID2I, ajid as the priop paid was very favourable, large quantities were rushed forward to take advantage of the opportunity. But this does not by any means explain the whole of the large increase for the year, for we find that the exports of butter. for instance, during the last quarter of 1921 (the first quarter of the new season) were no less than £3,033,000, as compared with only £700,000 in the corresponding period of 192 L DECREASE OF IMPORTS. In the matter of imports the change as regards source of supply is not so marked as in exports. It is true the percentage from the United Kingdom is up, but only by about 4 per oent. Australia is 1 per cent better, Canada the same, the United States and Japan 1 per cent down on 1920 figures. Although the imports In 1921 show a heavy decrease compared with those of l!) 20, they were very much larger than tlio-e of any year in the history of New Zealand prior' to 1920, but they do not give any idea of the actual trading position in New Zealand during the }a~t year. It i< no exaggeration to say, Mr. Dnlt'in afiirms, that absolute stagnation exisii-d in the majority of trades. ExI'fpt in special lines buyers were not at all <lis].o-cd to place new business; even if tiiey had been, money on New Zealand account was not available in London for the purpose, and all the banks were keeping a xery tight rein indeed on general business. For obvious reasons, however, t'.ie stati-ti.-al showing of the trading po-ition in New Zealand ialways at least six months behind the actual position, and it will therefore not fee before the figures for 1P22 are avuil-

able that it will be possible to see it reflection statistically of the position in -New Zealand during the past year. It Jβ not at all impossible, for "instance, mat the imports for the twelve months l d^. JuM next will not exceed £30,----000.000, even if they reach that amount, which is doubtful.