TRADE SHRINKAGE

Dominion, Volume 24, Issue 148, 19 March 1931, Page 8

TRADE SHRINKAGE

Heavy Fall in Exports EFFECT OF LOW PRICES Drastic Reduction of Imports A marked decline in the value of the Dominion's oversea trade is shown In the February returns Issued yesterday by the Customs Department. The declared value of the exports last month was the lowest recorded since the war, and showed a fall of £2,329,963 on February of last year, and of over £4,760,000 compared with February, 1929. The value of the imports last month at £2,396,528, was £1,571,690 less than for February last year, and was also the lowest February figure for nine years. Following is a comparison of the February returns in the last ten years:—

The valuation of exports last month is the lowest since 1921, when the figure was only £10,220 greater. During the intervening years the total for February has varied to as high as £8,336,263 the record figure in 1925. The latest import figures are the lowest since 1922 when the February return was £390,166 greater than for last month. Two Months' Figures.

January and February are normally the heaviest export, months of the year, but the figures for the two months this year show a decline of nearly £5,000,000 compared with the corresponding period of 1930, and are less by £9,470,800 than those for January-February, 1929, when the export total was £16,506,000. On the other hand, imports for the two months show a reduction of over £2 750,000 compared with the corresponding period of last year as is shown in the following table: — Jan.-Feb., Jan.-Feb., 1931. 1930. Decrease. ££ - £ Fxnorts . 7,035,202 12,002,689 4,907,487 Imports . 6,408,583 8,155,850 2,750,267 “export/ £1,626,619 £ 3,843,839 £2,217,220 The reduction in the export values is largely accounted for by wool and dairy produce. In January-February last year exports of wool were, roughly, 206,(196 bales valued at £3,049,000, as against 140*000 bales, valued at £1,080,000, this year. Butter shows a fall of roughly one-, fifth in volume, and of £1,206,000, or nearly 33 1-3 per cent., in value, and cheese is lower by £410,000, or nearly 40 per cent. Seven Months Comparison. The effect of low prices for primary products upon the Dominion’s trade is more strikingly illustrated by the export figures for the seven months of the •'export” or “production” year, which are compared in the following table covering the Inst eitrht vears:—

In comparison with 1929-30 the valuation of exports has fallen by £7,615.000, but against this the reduction of imports has been nearly £9.000,000. This indicates an adjustment of the trade balance, but the position is unsatisfactory when compared with the figures for 1927-28 and 1928-29. The reduction of imports, very materially affecting the Customs revenue, has been very pronounced during the last six months. 1' or the last four quarters reductions in imports have been approximately b per cent., 22 per cent., 221 per cent., and oos per cent. .

Exports. Imports. Excess. Feb. £ 41 £> ♦1,024,175 3921 .... 3,305,003 4,320,268 1922 1923 4,062,4(52 2,780,631 2,175,768 5,072.017 3,040,831 2,032,0815 1924 6.662,184 3,830,222 2,831,962 1925 ..... 8,336,263 4,037,824 4,208,439 1926 4,331,287 4,200,431 40,85(5 1927 5.015,451 3,292,610 1,722,841 1928 7,842,822 3,578,238 4,264,584 4.377,540 1929 8,056,083 3.(578,543 1930 5,624,836 3,968,218 1.656,61.8 1931 •••• 3,204,873 ♦Excess of 2,396,528 imports. 898,345

tne last eij ;nt years .— Exports. Imports. Excess of imports. .Tuly-Peb. 1923-24 .. £ 28,611,814 30,081,516 2,049,902 1924-25 .. 34,084,035 34,729,460 1115,431 1925-20 .. 28,233.281 36,393,369 10,160,088 1920-27 .. 1927-28 .. 26,023,332 33,353,219 32,475,653 29,930,500 6.452,321 ♦3,422,719 1928-29 .. 34,979,223 31,988,200 *3,011,023 1929-30 .. 29,810,211 34,819,384 5,009,173 1930-31 .. 22,195,203 25,866,954 3,(171,751 'Excess of exports.