The Press. FRIDAY, MAY 2. 1890.

Press, Volume XLVII, Issue 7540, 2 May 1890, Page 4

The Press. FRIDAY, MAY 2. 1890.

Thjb Australasian, Insurance and Banking Becord for April contains an interesting and instructive review of the trade of Australasia for the year 1889. The magnitude of the trade of these colonies is very strikingly brought out in the figures tabulated \ by our contemporary. Australasia, duriug 1889, imported goods to the total value of £68,196.594, and during the same period exported goods to the amount of £61,703,847. The excess of imports over exports during that period, therefore, wae £7,000,000 —a condition of things noc at all abnormal. In 1888, the excess was £8,000,000; in 1887, £7,000,000; in 1886, £14,000,000; and in 1885 nearly £12,000,000. But, taking the figures for each colony separately, j some curious and startling results are arrived at. In the case of Victoria, Tasmania and Western Australia, the imports exoeeded the exports, and in the case of New South Wales, South Australia, Queensland, and New Zealand, the exports exceeded the imports. The figures are as folio ws:— Excess of Imposts. Victoria £11,703,020 Tasmania... ... 143,871 Western Australia 105,90tt , Excess ob . Exports. I New South Wales £722,387 South Australia 4W.914 Queensland ... ... ... 940,631 New Zealand ... 3,043,168 £5,160,050 The net excess of imports for the whole of the colonies was thus nearly £7,000,000, as we have already pointed out. Taking the imports and exports for the last three years, the case is presented in a atill more striking light-— Excess of Imports. Victoria ... ... £29,492,397 Western Australia 273,502 Tasmania ... 668,112 ' £30,334,011 EXOES3 of Exports. New South Wales ... ... £387,176 Queensland 1,051,589 South Australia « 2,259,801 New Zealand « 5,488,247 £9,186,873 The net excess of imports for the three years was consequently £21,147,138. The two most striking facts brought out in the above table are, that in three years Viotoria imported, in round numbers, £30,000,000 worth of goods in excess of her exports, and that during the same period New Zealand exported about £5,500,000 in excess of her imports. In former articles we have discussed the general theory of imports and exports, and it ia only ." needed here to point out that the £30,000,000excesa of Victorian imports represent the large influx of borrowed capital during that period, and explain the era of feverish activity which has been witnessed in the sister colony for the last lew years* Oα the other hand, New Zealand has within the same period been restricting borrowing, but having a heavy load of interest, publicly and privately, to discharge (hitherto met by fresh loans) the colony had to make up the amount by increased earnings and diminished expenditure. ..'.:■ Our contemporary, referring to the case of Victoria, raises the question, How long is this influx of borrowed capital likely to last, for it must be remembered that a very considerable part of the capital reached the colony privately. At different periods, our contemporary points out, ",when "borrowed capital was flowing freely "in for investment, the imports of "New South Wales, Queensland, "South Australia,; and New Zea- " land have ; largely exceeded thoir " exports. But in every instance "these periods have been succeeded "by..those during which the exports " have exceeded the imports.'' In the base of New Zealand, it is pointed out, " this period of heavy borrowing was " during the seven years 18731879, "when the imports exceeded the .«exports by about £13,000,000." This large influx of capital was responsible for a great inflation in the value of land and both public and private e>t;?avagance. Our contemporary further points out that from 1880 to 1886 there ensued a long period of depression "during which the value of land was settling down towards an interest-paying basis, and during which industry on the one hand and retrenchment on the other, were gradually .bringing about an adjustment between j incomes and expenditure.' . It must not! Ibe supposed, we would point out, that ! from 1880 to 1886 the Government of ! the country had adapted itself to the I new condition of things. Far from it. i The colony itself borrowed and spent money on public works of various kinds, if not quite on ettch an extensive scale as from 1873 to 1879, yet on a lavish scale. But the burden of public and private extravagance during the lastnamed period began to tell soon after 1880. On numerous occasions in past years we urged this view of the case upon Parliament. We pointed out that, although the Legislature was, still extravagant, the people themselves, in their private bad adopted economical habits.; During the long weary years when the depression lasted the producers of the country were gradually adapting themselves to the altered circumstances. But it was not till the general election in 1887 that those who had been practising economy themselves succeeded in impressing on members the imperative necessity of applying the same principles to the colonial, expenditure. The result of the change is now apparent, In three years oar exports have exceeded oarimporteby about£s,soo,ooo. Turning onoe more to oar contesa*

penoa during which tb e largely exceeded the -J B *** South Australia W 2 Jg** i< to 1883, when the £? l8 §? £4,000,000. laNewLRS * upturn lasted from 1882 *f?> during which time that coW s > of imports reached J823.000.0t0*N the case of Queensland tfaTSj* period waa from 1881 to which time the wnSTfaS reached £8,000,000. M Viotoria the period of ment lasted from 1882 During that time the excel , ** imports reached the enorwote * of The £S> inflation has thus lasted W," Viotoria than in any of the con£ colonies. But there ia no talid mS* for thinking that it can longer. •*!