A NOTE OF CAUTION.

Dominion, Volume 4, Issue 1166, 17 June 1911, Page 6

A NOTE OF CAUTION.

THE COMMERCIAL OUTLOOK,

CAPITAL SHY AND NERVOUS

A BANKER'S WARNING.

In the course of his speech to the shareholders of the Bank of New Zealand at the annual meeting yesterday, Mr. Harold Beauchamp, chairman of directors, made some, important observations on the financial and commercial outlook. He said:—

In studying the facts and figures relating to the trade and finance of New Zealand there are many conclusions to be arrived at, and I feel constrained to say that, in view of the figures 1 shall presently quote, it would bo wise, on. the part of the business community, to pursue a policy of economy and caution. The trade returns are not as encouraging as one could wish, and, although they arc not actually disconcerting, they point to the possibility of some little stringency in the near future. The values of the exports and imports for the year ended March 31, last, compared with the figures for the three previous years, disclose the fact that, while in 1910 there was a big expansion in exports and a contraction in imports as compared with 1909, for tho year just closed the growth in exports' is disappeintingly small, whilst the increase in imports is exceptionally large. The totals (excluding specie) are as follow:— Year ended Exports. Imports. March 31. £ -2 1908 17,863,812 17,466,421 1909 16,767,818 16,313,759 1910 21.467.357 11,773,821 1911 21,197,i05 17,385,066 The Need for Caution, It will be noted that while exports for 1911 show an increase of only .£29,818, imports have increased by .£2,011,215. The figures indicate a disposition to over-im-portation, which, if not checked or counterbalanced by a corresponding growth in our exports, may lead to stringent financial conditions in the Dominion later on. The position suggests to the discerning tho need for caution. It is out of the amount realised for our exports that we pay for tho goods we import and also provide for tho annual interest on the public indebtedness of the community to the foreign money lender. The interest charge on our debt, is estimated at je3.500.000 per annum, and doss not appear excessive. In tho four years to March 31, 1911, our imports were valued at r-65 939,067, and the amount due on interest during the same period was approximately, .'£14,000,000. New /ealaui. had iherefore to find a sum of JT, 9.MMG7 Our exports for tho period totalled £<i,5.«i,-o-, that wo. were, jG2.3i2.815 short of re-1 quiremeuts. Reduced Wool Clip. The adverse position shown by the exports during the current produce year commencing October last, is mainly due to the smaller amount received from the wool clip. A smaller quantity was shipped; for the seven months to April JO last the weight of wool exported was 15» Gil 3681b., while for tho corresponding seven months of tho previous season the quantity was 167.468.44,1b . revealing .a shortage of U,857,0791b. The decrease in the total value is .£978,750 and arises a the smaller totals of the first four months of tho present year. The monthly figures are as follow:Odober A" , «g K ::::::::: i,g| %% t,„ mP - 1,660,21)9 J,»l-,«i.i iS 11 ::::::::::::::::: Jso>s j^ JC5.789.177 .£6.707,927 For the three months to December there was an increase of X31G.376; but in the four months of this year there is a shrinkage of -£1,295,126.