Our Trade Balance

Dominion, Volume 27, Issue 146, 17 March 1934, Page 21

Our Trade Balance

Sir,—ln view of the considerable amount of discussion which frequently takes place regarding the trade balance between New Zealand and Britain, the following figures should be of interest to your readers. They have been taken from the Annual Statement of Trade of the United Kingdom, which has recently been received in this country.

According to this statement the exports of the produce of manufacturers of Britain to New Zealand in 1032 were valued at £10,358,131. lie-exports from Britain of foreign goods to New Zealand were £287,930. The imports of New Zealand products to Britain were valued at £37,010,001. Of these £33,220,690 were retained in Britain and £3,798,311 re-ex-ported. From these figures we must deduct £8,250,000 for interest on Government and local body loans. There is also an amount for freight, insurance, etc., to be deducted. It is difficult to obtain a definite figure for these. It has been estimated at £3,500,000. Perhaps it is a little more, say, £4,000,000. On the other hand it is necessary to allow for the other side of the ledger. Here we must allow for new loans, money brought to New Zealand by immigrants, tourists and travellers, port receipts from overseas shipping, and miscellaneous Government, receipts. including £271,000 for pensions paid to ex-soldiers, navy men and civil servants. A reasonable figure for these would be, say, £1,000,000. This leaves an adverse trade balance to Britain of £11,612,559. From the above figures it appears that New Zealand spends with Britain an amount equalling about £l5/14/- . per head of population and sells, to Britain goods value of £22/16/- per head. While we have this favourable trade balance with Britain, what of our trade with other countries? On this point it is interesting to know what the New Zealand Government Statistician says about it. In the Year Book he says: “After making allowance for interest charges, there is still a considerable surplus of exports to the United Kingdom, which, however, is largely offset by an excess of imports m New Zealand trade with other countries, particularly in the case of the United States, the imports from that source being four and a half times as great as exports sent from the Dominions.” The majority of other countries also take less than the Dominion receives from them, the deficit being made good from the surplus of exports to the United Kingdom. Writing on the question of Economics of Eastern Trade in the February issue of the Investment Review, Dr. Guy Scholefield, 0.8. E., has given some startling figures of our trade with other countries and his conclusion is full of meaning for the people of New Zealand. It reads: “The burden of meeting the extraneous debits of New Zealand’s foreign trade can only be borne by the British system if it is continuously underpinned by receiving full support of the British Dominions. . . . That inevitably demands that the trade of a country like New Zealand should be as far as possible arranged on the basis of equivalent exchange.” Thanking you for the favour of publication.—l am, etc., J. E. HORSFIELD. Nydia Bay, March 13.