REVIVAL OF TRADE

Dominion, Volume 16, Issue 174, 11 April 1923, Page 5

REVIVAL OF TRADE

RETURN TO PROSPEROUS TIMES CHAMBER OF COMMERCE REVIEW’S POSITION HOPE FOR PROGRESSIVE IMPROVEMENT Financial conditions tend to become easier, and, as the increased prices for New Zealand produce are received, there is sura to ba a revival of trade in the Dominion. One can with certainty say that New Zealand has passed out of the period of depression which it experienced in 1920-21, and from now on there should be progressive improvement leading to prosperous times again. These statements appear in the annual report of the Wellington Chamber of Commerce, which was issued yesterday. Other extracts from the report, uro as follow: — Though in value exports show soniu decrease for 1922, still the volume of trade has, through the benefit of a very good season, shown a healthy recovery. The dairy industry has had the benefit of bountiful rains, which has resulted in a marked increase in butter-fat production, and a very satisfactory sign has been that the wool markets have once again returned payable figures. This increase has principally been shown in the prices for the classes of wool substantially produced in New Zealand. The average prioe per bale, as received by the New Zealand producer, lias beep over double that received in 1921. and this will contribute to a very favourable balance of trade for New Zealand. Meat has also shared in the improvement in values to a lesser degree. Financial conditions tend to become easier, and, as the increased prices fol New Zealand produce are received, there is sure to be a revival of trade in the Dominion.

There have been very favourable increases in the Government revenues for the year, and not only are the railways stated to have improved their position, but other Departments, such as the Post Office, report more satisfactory figures than m the previous year. The following table gives our exports and imports, emitting specie, for the past few calendar years, with the balance of trade for each year: —

Our export figures still fail to provide a guide to the measure of production owing to the clearance of accumulated stocks. This clearance has now been practically effected, and future statistics will be more indicative. The tufa I of imports for tho past year shows further satisfactory reduction on tho high totals of tho two preceding years, and has got down to what may bo considered a fairly normal level for the present. General Trading Conditions. The year 1922 opened with New Zealand still under tho spell of a general depression, due io excessive importations and low prices for export:*, but gradually during the year tho positron improved, and it can safely bo forecasted now that this year will bring New Zealand out of inis period of depression. The outlook is very bright for a return of that prosperity which was so rudely shaken in 1920. For the first time for r. considerable period a favourable position was recorded in the overseas trade, and the preponderance of imports gave way to a favourable balance of trade in favour of exports. For the year 1922 the exports exceeded imports by £7,720,709. and even after allowing, say, £5,000,000 sterling for interest abroad, and allowing for any undervaluation of imports, due to the assessment of freight on a 10 per cent, basis, there should dill remain a substantial credit on our overseas trade.

The most satisfactory news for New Zealand was the return to payable prices for its primary products. M’ool in particular, of the classes that Notz Zealand produces, showed a very healthy recovery; medium to good crcgsbred greasy wool, which averaged in December, 1921, about 6)d. per pound, in December, 1922, returned an average of about Is. per pound. The increase in value will be reflected in the buying power of the farming community, and should give a considerable impetus to trade in every direction. This increase in prices should mean an additional return to New Zealand for wool alone of over £4,000,000. Dairy Produce. The dairying industry, which .had stood New Zealand in such good stead when other prices had collapsed, also shared in the advancement of prices. The dairying industry has_ increased by tremendous strides in New Zealand, and in 1922 the products of dairying exceeded one-third of our total exports, being made up of: — £

The 1922-23 wool season opened in Christchurch, on November 16. The interval since the close of the previous Season had seen the stocks of wool in the world held by “8.A.W.R.A.” and growers much diminished, and consequently the season opened with a general feeling that the slump in crossbreds was oyer. This was shown in the competition at each successive sale held in New Zealand, the only setback coming in February, and that was mainly to the extent of Id. to ltd. on medium crossbreds. Tho offerings in Now Zealand have been abnormal, and it is anticipated that before the selling season c’oscs in April over 460.000 bales will have been offered and tho bulk so'd. Of this quantity. 45,000 bales may have been old wool: practically 80 per cent, of tho greasy wool of tho greasy .clip is being marketed in the Dominion. Of this Wellington will offer the large quantity of 110.000 ba-es. At the time of writing (early March) the average value of North Island crossbreds (including pieces and locks) through tho Wellington sales is approximately 10d.. or an increase of 3Jd. since May of the previous year. The increase is quite satisfactory, and wool-growing is once more a payable proposition, and tho

whole Dominion’s trade and finance is feeling the effects of the higher prices and improved prospects. Hemp.

There is nothing eventful to report so far as hemp is concerned for 1922. The Dominion production exceeded tho previous year’s outturn by 47 bales, the respective figures being:—l92l, 60,443 bales; and 1922, 60,490 bales. This result give's ground for hopo that tho ravages of the blight in the flax crop have been arrested, though no definite pronouncement on this point can yet bo made. In the early part of 1922 the value of high fair, which is generally regarded as the standard grade of New Zealand hemp, was £27 10s. It fell in stages to £24. but later recovered. Actual monthly averages for this grade are as follows: —

It is pleasing to record the fact that tho United Kingdom and the United States of America showed an active interest in Now Zealand fibre during the latter half of 1922, and there is now reason to believe that the prejudice on tho score of quality, which once existed in tho minds of buyers in these markets, has been dissipated. Frozen Meat. During the year under review a remarkable improvement lias taken place in the frozen meat industry. The reduction in prices at the close of 1921, consequent on the accumulation of meat then in store, stimulated consumption to such an extent that stocks were speedily cleared, and tho new season’s meat arrived on a bare market. Prices advanced rapidly to the point where consumption was again checked, and for some months the prices for mutton continued very weak. The end of the year once more saw stocks depleted and prices up to their highest level. The prospects of a continuance of payable prices tor this year’s output of mutton and lamb appear quite favourable. The output of mutton, however, will be substantially reduced owing to the decrease in the Dominion’s flocks, and the indifferent fattening season so far experienced will aifect to some extent the volume of lambs exported. The outlook for beef is also considerably improved. Hides. During the last twelve months there have been considerable fluctuations in Uiis market. The quantities of hides offered at the Local sales last year did not approach the same numerical proportions as in 1921. There was no material difference in the quality, although the value of many hides offered was seriously depreciated through carelessness in flaying the cattle, for a great many of the hides were scored, which is far more detrimental than a straight-out cut. Sheepskins. There has been keen competition throughout the year from exporters for all well-oared-for skins, and it is pleasing to note tho steady rise in nr:ces month by month, from January to December. In fact, there is a much healthier and more buoyant tone in ths market for both dry and green skins than at this period last season, in the earlier part of last ypnr, when the wool market was depressed, sheepskins woro of little or r.o value, and, except for the better pelted lines, it was almost impossible to effect sales at prices that would cover costs of marketing. As the wool sales improved, sheepskins responded, and recently pelt values made a forward move; so these two factors, combined with tho growing export s trade, have considerably raised values in the local skin market. The rise has been so consistent that December, 1922, prices, compared with December, 1921, prices, are (as will be seen from tho following table of prices) in all instances double or mow than double the prices cur-

There is a keen demand for dry sound skins, and it is a pity that bo many farmers leave skins in. their sheds for a lengthy period without proper attention, enabling vermin to work havoc with the pelt. Owners do not appear to realise the importance of caring for their skins. The export trade requires only the best. Many skins have to be left to the local fellmongers that would have with a little care been suitable for export at 2d. to 3d. per pound inci'ease in price. Butter. When the 1922-23 season opened about August, the markets throughout the world were steady, and there was no excessive stock held at any point. Early butter for exnort realised Is. Bjd. f.o.b. Generally, factories showed no inclination to sell, and the bulk of the season’s output of butter has been consigned to London for sale on account of the dairy factories. Tho prices have fluctuated from week to week, but on the whole we can say that the season so far has been a very steady one as the following figures show: —

Ex store London: —August, 2025.; September, 2065. to 2185.; October, 218 s. to 2045.; November. 2045. to 2085.; December, 182 s. to 190 s. ; January, 190 s. to 2005.; February, 200 s. to 2145.; March, 2145, to 1945. and the indications are that the market will be steady for the remainder of this season’s produce. Production has increased, and we have passed through a wonderful season for growth. Figures prepared by tho Dairy Division of the Agricultural Department show that the salted butter graded for February, 1923, was 140,593 cwt., and the unsalted 10,341 cwt., compared with a total of 103,790 cwt. for February of last year—as increase of 45 42 per cent. For the seven 1 months ended February. 1923, tho respective quantities were 982,454 cwt. and 66,042 cwt.. comnared with a total of 737,781 cwt.—an increase of 42.11. per cent. A feature of the season’s business has been the sale of seme 150.000 boxes of. butter to the U.S.A. The price, however, realised was below London parity, and it was made at a time when it looked as if the market in London was likely to be lower, and was sold at the lowest point of the market for this season. Cheese. At the beginning of the season many of the cheese factories sold their cream to butter factories, as it was believed that tho price for cheese at tho earlier part of the season at Home would not be as good as for butter; so wo had a late start, and there was very little new cheese available before the end of October. It has been a wonderful season for prices, and on no occasion has there been any accumulation on the London market. Eightpence per pound f.o.b. New Zealand was the price offered for the opening of the season; practically no business was done. Mamy factories, however, have cold month bv month and obtaSed from 9tf. to 9Jd. up to the end of February,

netting a good average price, but the short supply on the London market points to the consigning factories eventually’ doing and it is likely that an average or about lOd. will 'be realised, though there are several jnonths’ make yet io be marketed. Tlie trend of the prices ex store London is as follows: —

It is noticeable that at the early part of tho season white realised a better price than coloured, but towards tho end of the season tho coloured was in greater demand. Again we quote the figures as prepared by the Dairy Division of the Agricultural Department for the seven months ended February, and the totals for the seven months ended February, 1923. were: M lute 536,555 cwt., coloured 298.175 cwt., com-pa-red with h total of 892.915 cwt— —a decrease of 6.51 per cent. Taking the Dairy Division's figures and converting them into butter-fat equivalent, there is an increase of 24.68 per cent, in butter-fat production for the seven months as compared with the corresponding period of 1921-1922.

Year. Exports. Imports. £ £ 1922 .... 42,725,949 34,826,074 1921 .... 44,828,460 42,744,122 1920 .... 46,405.366 61,553,85.3 1919 .... 52,826.704 30,308,908 1918 .... 28,438,187 24,131,729 1917 .... <31,597,547 20,742,130 1916 .... 33.286.937 25,045,403 1915 .... 31,430,822 20,658,720 1914 .... 26,253,925 21,144,227

Butter 9,041,554 Choose 4,686,850 Dried and Preserved Milk 529,650 £14,258,054 out of a total value ot exports of £42,726,249. Wool.

£ s. d. January 27 10 0 February 26 10 0 March 26 o 0 April 25 0 0 M fl y 23 10 0 June 24 10 0 July . . 25 10 0 August 25 15 0 September ..., bj.-j 10 0 October 10 0 25 0 0 December 25 10 0

rent in December, 1921: : — Dec. June Dec. 1921 1922 1922 Half bred 8 111 Fine Crossbred 4j 7} 93 Medium Crossbred 31 Coarso Crossbred 3 4? 6}

White. Colouied. Aug. ... ... 88s. Sept. .. .. 88s.. to 96s. 84s. to 94s. Oct .. 96s. to 108s. 94s. to 106s. Nov. ... .. 103s. to 128s. 106s. to 126s. Dee .. 128s. to 124s. 126s. to 124s. Jan. ... .. 124s. to 126s. 124s. to 128s. Feb ,. 126s. to 134s. 128s. to 136s. March .. 134s. to 148s. 136s. to 150s.