NEW ZEALAND'S TRADE

Press, Volume LXX, Issue 21119, 21 March 1934, Page 10

NEW ZEALAND'S TRADE

PROGRESS IN PRESENT CENTURY INCREASE IN EXPORT OF PRIMARY PRODUCTS

The immense progress which New Zealand has made in Ihe present century in the export of primary produc- was emphasised by Mr W. Machin, when delivering the address of the "Governor-General'' at the opening of the Christchurch Parliamentary Union last evening. Mr Machin gave a general review of political and economic affairs of New Zealand, and of the Dominion's place in world trade. In a comprehensive survey of the present condition of the country, he indicated that he saw signs of economic recovery and revival.

•'This House meets at a very important hour in the history of modern civilisation," Mr Machin said. "After four years of the deepest depression, we are meeting with the stimulus of being encouraged to hope that a business revival will lift us out of the depression, and get the trade of the world to move with its accustomed rapidity. There are most encouraging signs that this is gradually taking place, and that the movement is on the increase. There is an evident movement of goods and prices throughout the great trade centres of the world, and a very necessary adjustment between money and goods has been taking place.'' Britain's Improvement In Great Britain there was also perceptible a larger volume of trade. less unemployment, and some progress towards attaining a lower level of costs which would make Great Britain regain her position as the leading commercial nation m the world.

I In New Zealand, it could be seen | that prices were better for some of jlhe commodities which the country j exported. The Dominion's exports last year exceeded in value I .H 40.000.000—a figure approximately \4\ millions in excess of that for ; the previous year, and six milions , more than the figure' for 11*31. Those ! exports no! only realised a larger J income in the currency of the Uoj minion, but increased in volume in a : most satisfactory way—satisfactory j m that it showed the greater indus- | try and progress of the Dominion, j They were embarrassing in that they I provided a greater quantity of : primary produce on the markets of the world, which in some cases were already i verloaded. Wool and Lamb Prices K.-teiriug to the shortage of wool ; and the consequent competition for j its acquisition by nations, with a re- ; sultant rise in the price. Mr Machin j said that in 1933 New Zealand exj ported 440.000cwt of wool more than , was sent away in 11)32. For the present year it ill became the , speaker to prophesy, but it was ,'probable that the returns would be .between five and six millions in cx--1 cess of the return for the wool which | was' exported in 1033. Lamb exj ports for 1033 had increased by ! ,",(10,000 carcases on 1032, and three- ! quarters of a million on 1931. ISuttir exports had increased in 1033 by no less than 450.000cwt, land even in that depressed industry receipts increased by £1.000.000 ion the previous year. In cheese 'there was an increase m exports 'ol 200.000cwt. but the income had , failen by M 200.000 on that for ! pt;<2. Mutton exports showed a I docroaiso in both the tonnage and ' income, the value for exported muti lon having fallen m the year by 1 i; i,^0.000. "Surprising Progress" "In these days, when there are ill I sorts of discussions going on (about markets being overloaded, it j is well for us to consider the enorI mous progress New Zealand has made in the volume of her exports during the present century. The ' progress made in the last year or • two is surprising. Since 1928 the ' volume of exports lias increased by |33 per cent., on markets which ! were already considered to be overloaded. On a population basis the i increase for that neriod is 30 per ieent. Unfortunately -during the j same period the prices for those i products have fallen by no less than J47 per cent."

The volume of imports had increased in 12 months by I per cent., and the value by 1 1-3 million pounds, or -1 per cent, on the previous year. But the volume of imports was 3.3 per cent, lower than in 1!)28. and 13 per cent, lower in value. Heavy Increases Going Irick to the year 11)00. Mr Machiii sa'd that the exports of primarv products had increased amazingly. lie quoted the following table to indicate the progress made:-

Lowering' Costs "We have been most successful in securing the conversion of the interest on our internal indebtedness to a lower rate." said Mr Machin. when discussing interest reductions generally. "From the actions ol sister nations we have loecivod much encouragement in this, and alter the conversions in Anstralia and Cireat Britain, New Zealand successfully converted .!_• 70.0(10.001) of her interna! debt by n reduction ot 20 per cent., the sa\ ing per annum being .'J 707.000. "In line with this we have seen reductions of interest, all round--by the Post OtTice Savings Bank to 3 per cent., the Public Trust common fund to :V. per cent., mortgage interest and rent by 20 per cent., bank overdraft rates have been reduced for best accounts, and local body securities have also fallen into" line. This is one of the most significant adjustments, and means that cheaper money will bring lower costs, with the ability to meet competition from those countries manufacturing on lower standards. We only hope that the rate of. 5 per cent, which we have been paying r>n Treasury JbiJls-wjll

be reduced with the advent of the central bank. National Expenditure "We regret that the annual national expenditure trom the Consolidated Fund does not show a larger increase. Big economies have been made in salaries and services, wo have secured a big saving in the remission of war debt interest, public services have been reduced. One important economy that can also be recommended is the reduction of interest on our huge overseas debt. We cannot afford to give such a large volume of primary products as we are doing, in payment, of the interest on the money \\ hicli we borrowed to develop these primary industries. That reduction in itself would assist: us towards achieving lower costs and enable us to compete with other nations which are forcing their goods on our creditors, who are the ultimate buyers, in London.'' Mr Machiii recommended to "his ministers" that the Government should carry out the provisions of the Ottawa agreement, particularly that article (7) winch states that the New Zealand Government undertook to see that protection by tariffs was afforded against United Kingdom goods only to those industries which were reasonably assured of sound opportunities for" success. Unemployment was ;.lso "a grave wound in the bodv politic," and needed the close attention of "the Government."

Hull, r O'V'l-. 1 T-J. 000 hi!.,. nvts :iT2.ooo i:i.»:;. rwts. !?.(;:? r>. ooo (•horse I 0:1.000 fi 12.000 2.000.000 Moa! 1.800.0(10 2.500.000 4.000.000 \V(H.I .. 1.^.1(1.000 1.600,000 2,.-i00.000