OVERSEAS TRADE

Dominion, Volume 26, Issue 50, 22 November 1932, Page 8

OVERSEAS TRADE

Marked Increase in Exports

IMPORTS STILL LOWER Favourable Balance Growing FIGURES FOR TEN MONTHS A further substantial inprovement in the visible favourable balance flf Hie Dominion’s oversea trade is the outstanding feature of the October returns released yesterday by the Customs Department. For the ten months of this year to October 31 export values increased by over £2 million and imports decreased by a sirtiilar amount, an improvement of M over £4 million in twelve months. * the apparent favourable balance for the ten months was over £l2 million, compared with slightly over £8 million for the corresponding period of 1931.

Exports last month were valued at £ o 401,000, an increase of £665,728 compared with October, 1931. Imports for the month were lower by £14,699, as is shown in the following comparative table:— O ct. 1931. Oct. 1932. Increase £ £ £ Fmorts ....1,135,450 2,401.178 665,728 mpSrts .... 1,862,231 1.847,532 * 14,690

BX P X°’ - IW*l - EXC onV f - - 553,646 - ‘Decrease.

It is probable, of course, that last month’s Increase in exports is represented by one ship’s cargo. A truer comparison is afforded by the ten months’ figures. Ten Months’ Showing. Export values for the ten months ended October 31 totalled over £3l million, compared with £29 million for the corresponding period of last year, an increase of over £2 million. This represents a remarkable achievement in production. Considering that meat prices were showing a continuous decline and that the prices of wool, butter and cheese and other primary products have been ruling at lower levels this year than last, the gain in export values of over £2 million represents a very considerable increase in the volume of exports. The figures for the ten months’ periods compare as follow: — 10 mths. 10 mths. Increase 1931. 1932. or deer. £ £ £ Exports . 29,004,574 31,087,830 2,083,256 Imports .. 20,960,260 18,913,231 *2,047,029 Excess of exports .e 8,044,314 12,174,599 4,130,285 ‘Decrease. In view of the present exchange controversy, the position as disclosed by the above figures is of outstanding importance. The apparent favourable balance of trade for ten months is shown to be well over £l2 million compared with a shade over £8 million twelve months ago. The values shown for exports are the declared f.o.b. values in terms of New Zealand currency, while imports are valued on basis of values in the exporting countries plus 10 per cent. If the ten months’ export values are converted into their approximate sterling equivalent, by the deduction of 10 per cent., they represent roughly £27,979,000, so that the visible favourable balance in sterling is over £9 million. Ten Years’ Comparison. In the following table are given the export and import values for the ten months’ period for thq last ten years:—

Excess ot Ten Exports. Imports, exports, months. £ £ £

It will be seen that exports for the ten mouths of this year, despite a depression that has brought prices of the Dominion’s primary products well below the pre-war level of values, are only £Bi million less than those for two years ago, and are £2 million higher than those of a year ago. On the other hand, imports at under £l9 million'are little more than onehalf of those for the ten months of 1930, and this with a 10 per cent, exchange rate. The figures also show that the favourable balance of over £l2 million for the ten months of this year is the highest recorded for a decade, and compares more than favourably with that of £IIJ million in 1928, when the exchange position was normal.

1923 .. 39.720.169 36,083,360 3,636,809 1924 .. 43,984,306 40,220,427 3,763,879 1925 .. 46,149,945 42,980,176 3,169,769 1926 .. 39,020,207 41,741,128 •2,720,921 1927 .. 40.259,995 37.272,274 2,987,721 1928 .. 48,445,630 36,715,283 11,730,347 1929 .. 48.134,089 40,764,220 7,369,863 1930 .. 39,576,645 37,040,126 2,536,519 1931 .. 29,004,574 20.960.260 8,044,314 1932 .. 31.087.830 18,913,231 12,174,599 •Excess of imports.