TRADE RECOVERY.

Auckland Star, Volume LXVII, Issue 236, 5 October 1936, Page 4

TRADE RECOVERY.

INCOME FROM EXPORTS. FARM COSTS AND PRICES. "We meet this year at the end of a season which has yielded New Zealand , an income from our exported produce -of nearly £54,000,000 for the 12 months," commented Mr. Arnaud McKellar in a review of the Dominion's trade position at the annual meeting of the New Zealand Farmers' Co-operative Association of Canterbury, Limited, in Christchureh. "This is £8.000,000 more than last year, nearly £19,000,000 more than the Dominion received in the years 15)31 and 1932, and is the peak for the seven ycai'i since 1929." Iu these seven years, Mr. McKellar said, the country had its export income reduced by just over £80,000,000 from what would ] have come in had the export income been maintained at the '£35.000,000 level of 1929, despite the fact that exports had increased steadily in volume during the period. is undeniable," lie continued, "that New Zealand's general level of prosperity has always been closely allied to the size of its income from overseas, and this year's increase to £54,000.000 has been reflected in business generally. "Satisfactory as is this present trend towards recovery, the Government's price index for August, 1936, shows our export prices for pastoral and dairy products to be only 15 per cent higher , than they were in 1914, and 17 per cent less than they were in 192G, while wage rates in August were 44 per cent higher than in 1914 and only 8 per cent less than in 1926. "Wages and other casts are now rising and it is to be hoped that primary produce prices will rise also, otherwise we shall again suffer disparities in farm costs and prices which have caused so much trouble in recent years. Company Expenditure. "Recent legislation will increase expenses of this association in the meantime by amounts which we have calculated will aggregate ,a sum of over £20,000 per annum. It is true that the same legislation will influence this extra money into circulation and that it should stimulate business. "In some quarters it is stated that the extra profit made by mercantile firms such as this association, will balance and compensate for the extra outlay. Ido not share that view, for I cannot see how money paid out as extra expenses can all, or even a major part of it come back to traders as profits. It may come back as turnover, but profits these days are only a very small part of turnover. "However, we are going through a very interesting social experiment, the objects of which must have the sympathy of reasonable people, even while they are doubtful whether the methods will stand the , test of experience."