A TRADE SURVEY.

Auckland Star, Volume LVIII, Issue 87, 13 April 1927, Page 4

A TRADE SURVEY.

AN OPTIMISTIC VIEW. BY WELLINGTON CHAMBER OF COMMERCE. Although recognising the need for caution, the Wellington Chamber of Commerce. in its annual report, expresses the view that the position in regard to the Dominion's trade balance should right itself this year. "The year 1926 has witnessed a very marked change in our overseas trade." states the report. ''For the years 1921 to 19-5 exports exceeded imports, though by a somewhat small margin, but in 1926 there was a reversal of the position, imports being in excess by £4,542,817. It is much the same as happened five or six years ago, a splendid export year in 1919 prompted over-importation in 1920, and exports falling off by nearly 6% millions were £13,148,487 short of imports for that year. "It took nearly four years to wipe out that debit balance, even without taking into account our other outside indebtedness for interest, etc. Two flush years for export in 1924 and 1925 have again led to heavier importation, and in 1926, as in 1920, exports showed a reduction in total value, and were not sufficient to provide for tlie heavier imports. To a certain extent the position was foreseen, and importation was reduced bv £2,614,016, but exports were £9,974.123 less in value, resulting in an excess of imports of £4,542,817.

Will Saon Be Righted. '"This debit balance in our trading has had its effect in depleting the funds at the disposal of the banks, and this curtailment of the Dominion's national income necesarily reduces spending power generally, so causing reduction in trade all round. This will in turn result in further reduction in importation, and if New Zealand s exports improve. as there seems every prospect of their doing, the position will soon be righted, provided, oi course, importation is kept within reasonable limits. Exports for the years 1924 and 1925 were much above average, and the latest drop only brings the total back to about the average of the vears 1920 to 1923. Dairy Reclamations. "Ihere is considerable uncertainty at the moment surrounding the market for dairy produce, and this disquieting feature may result in heavy reclamations of advances already made against produce of our farmers that has been shipped abroad. There appears every warranty for the opinion that the realisation of the heavy stocks that have accumulated, after interest and storage costs have been deducted, will not be up to original expectations, and this will have its effect on the national income, in which all classes ot the community are concerned. The position should right itself tnis year, but the situation calls for caution and economy to tide over this period of readjustment in oul* balance of trade. M