BUSINESS DULL.

Auckland Star, Volume LXIII, Issue 260, 2 November 1932, Page 5

BUSINESS DULL.

KAURI GUM EXPORTS. LOWER PRICES OBTAINED. POSITION OF ACCOUNTS. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. A further decline in the average price per ton of kauri gum exported from New Zealand during the last financial year is indicated in the annual report on the kauri gum industry presented to Parliament yesterday.

It is shown that the exports amounted to 3104 tone, of a value of £124,757, yielding an average price per ton of £39. The export in 1924 was C 923 tons, the value being £040,712, and the average per ton £92. Since 1924 the exports have gradually dropped to 3145 tons in 1931, and the average price to £49.

The report observes that during last year the business was very dull, with practically no demand for the better (varnish) grades and a greatly diminished demand for the poorer (linoleum) grades. It was not a question of price, or the competition of other gums, so much as a result of the world-wide depression in raw materials generally. Other varnish and linoleum gums were affected in the same way, some to a much greater extent than kauri gum. "Whilst the demand fell off in all directions, it was particularly so in the case of the United States of America, business with that country being duller and prices lower than for many years past. To some extent the demand for linoleum grades held up and some business was possible, especially with Great Britain, but prices fell to a low level. Owing to the depressed conditions of the labour market, gumdiggers were for the most part compelled to remain on the gumfields and accept whatever prices were offered, with the result that the output of gum was much larger than would have been the case had other work been obtainable. The Department still has a comparatively small stock of gum in the hands of the Kauri Gum Control Board, consisting of chip gradings recleaned at the board's gum-cleaning plant at Penrose. No reasonable offer could be obtained for the same during the year,-and they are being held pending an improvement in the market conditions.

The kauri gum received in Auckland from the gumfields was 3004 tons, compared with 3526 tons for the previous year.

The balance-sheet of the kauri gum industry account show liabiilties at £82,227, made up of debentures, at 4 per cent, £57,000; writings off reserve, £7268; and Treasury adjustment account, £17,959. Assets comprise: Assets in course of realisation, £7323; gum on hand, £2298; advances on gum, £25; debtors (Kauri Gum Control Board £249, Departmental £40, miscellaneous £65), £355; investments, £829; loss in suspense, £58; accumulated loss to March 31, 1931 (account abolished), £71,336.