The Press. SATURDAY, APRIL 19, 1890.

Press, Volume XLVII, Issue 7529, 19 April 1890, Page 4

The Press. SATURDAY, APRIL 19, 1890.

A corrbspondent, whose letter appears elsewhere, raises a question of very large importance to the people of New Zealand, He is puzzled over the fact that our exports continue to be so largely ia excess of our imports, and he puts the question—ls the colony not suffering to the extent of that difference 1 We have dealt with this question in a previous article. Since then, however, our exports have shown a further advance while our imports have disclosed only a very slight increase, and we a>re now face to face with the fact that for the year ending March 31st last, our exports exceeded our imports by the extraordinary amount of £3,453,883. Our correspondent may well ask what has beoome of that enormous sum.

In considering the question it may be accepted as a general principle that, under a normal state of things, the imports and exports of a country just about balance. If it sends away goods it receives payment in goods in exchange, and if there are no disturbing elements to be taken into account the two will be about the Bame in value. But in moat oases there are disturbing factors, which have to be reckoned with. Take the case of Oreat Britain, for example. In her case the imports always largely exceed the exports j yet the wealth of the country is admittedly increasing year after year by an enormous sum. In 1888 the imports into Great Britain were valued at £386,582,026, and the exports at j£298,3_7,_--, the excess of imports being nearly £100,000,000. At first sight it might appear that the United Kingdom had lost its capital tp the above amount, and that if it continued the country must be ruined. But aa the same process has been going on for many years past, while at the same time the country has been advancing in wealth, this conclusion would be obviously inoorreot. The real explanation ia, of course, well known to most people. England has made vast investments in all parts of the world, and the interest on those investments reaches her in the form of imports. We have only to point to the extent of British investments in America, India, the colonies, and elsewhere, .in illustration of what we mean. New Zealand, on the other hand, is not an investor in foreign securities, On the contrary, we have, been for our size and population, very large borrowers. Our borrowings have not been confined to loans raised by the Government and local bodies. Through companies, banks, and private agents, large sums of foreign capital have been invested In this country, the interest on whiqn has to be remitted to the owners elsewhere. As long a? the Government of the polony continued to be copstautly appearing in the Loudon market for loans the effect of our borrowings was not so apparent. During the wild days of the public works gamble million after million was poured into the oountry, creating a fictitious prosperity which affected all classes of the community. Privately as well as publicly our debt was piled up at a merry pace, with the natural result that our imports went up at a rapid rate, and always greatly exceeded our exports. In time tfte rPr action set in. It first showed itself after the cpllapse of the land mania in 1879, and from 1882 onirards a heavy cloud of depression gradually settled <J°wn upon New Zealand, Many struggled reeolutely t£ induce the cplony to resort to a large sohflma of public borrowing as the only means of restoring the semblance of pros* parity, and at one time it appe&re4 as if they were lively to succeed, Fortunately wiser counsels prevailed, The electors began to see that any scheme of the kind would only in the end have increase<| the burden, andj Jeit the country in, a more depressed condition than ever,

The difference between pur and our imports represents the Interest ou 4 the eitravagant borrowings of the past. It also t<j some. extant means that the colony is already making good some of the losses suatained by reckless investments. It meaus that, if we are no. yet attractj ing population, and consequently capital, to our shores, we are at least paying out? way, as well as iv some degree liquidating debts whioh have been incurred, Iv fact, New Zea* bind is Tory much is the posi* tion of a spendthrift who has. been doing his beat to dissipate a valuable estate, and who has been brought suddenly face to face with his position. In the past we did our best to waste nil our substauce in rjqtous Jiving, aqd but for tbe persistent ©ffortsi of the we'raight been completely guceesafuj in doing so. Foriqnateijr common sense prevailed before ii "was too late. We have in the colony a magnificent property still if wisely an 4 prudently Tbe export returns of the last two years concluajv-Jy prove this. Scarcely a country in the worid similarly circumstanced could have stood tbe attain whioh New Zealand has stood witb comparative ease. Even our most friendly critics at Home came to the conclusion that there was nothing for us for years to come but a dead, monotonous period of harrassing depression. These gloomy predictions have not been verified, To the astonishment of everyone beyond our shores who has been watching ita pro*

gross, the colony _*, IS the demands upon it 1! slightest inconvenience, ft proved that we can not oSm* ll out loans, but bear the burin.*" 1 * | extravagances without i aD oi_v_ • p& -- V the pifeawt position of the JkSJS f undoubtedly it ia this, that the ssl5 $l P which has produced such njL*S I results in such a brief space , f "S 1 must be resolutely adhorsd to f„ I future. Ut our re&dei, tie ; | themselves what the _oo_ition r *° r colony would havo been v tho _J ** I moment had the total proceeds of I' exports been all returned to m** S would have equalled a tfoZ, l 1 1 million loan spat iathel^? , I in one year, but instead of bei„_w? I rowed money it would have C I our own capital, A few yearn reso? I adhesion to our pre ent policy ? I vastly improve the condition of {bin * We cannot get rid, it i 8 J | of our liability for interest 0 n T" 1 1 existing debt But the remark*? 1 capacity ot tue colony to B roaT ?? cannot fail to attract i,ttwtioY3_! f where. When the tide Eof | once more seta m towada o«r ihZ I the result will show itsolf not oabT P our exports but in our imports, %