Trade With Britain

Dominion, Volume 28, Issue 119, 13 February 1935, Page 11

Trade With Britain

Sir.—ln last Saturday's “Dominion” the Hon. R, Masters, Minister of Commerce. is reported as saying that from the figures of imports and exports, £8,000.000 must be deducted tor freight and insurance. The Year Book states that the figures of exports are values fob New Zealand ports, so that nothing is to be taken from them. The imports are given at cost, plus 10 per cent, to coyer freight and insurance, so that nothing more must be added. Mr. Masters wants to claim credit for freight both ways. The Year Book contradicts Mr. Masters in several other ways, on the question of the trade balance with Britain, for instance. After referring to America’s four-to-one balance against New Zealand, it states: “Most other countries also sell more to New Zealand than they take from the Dominion, the balance of these payments being met jby the surplus of Britain’s purchases.” The Year Book also tells us that in 10 years the .'total payments for visible and invisible trade resulted in a favourable balance of £18,000.000, which must also have come from Britain. The Year Book also gives us figures of imports and exports since 1914, from which it appears that in 29 years (1914 to 1933) Britain bought from New Zealand goods valued £770,000,000, and sold in return only £345,000.000. This gives Britain an adverse balance of £335.000.00, to which must be added £160,000,000 for money borrowed in London. If any other proof is required that Britain does not get a good trade return, it is to be found in the accumulated sterling funds held in London by the Reserve Bank. While Mr. Masters is now trying to prove that Britain receives 100 per cent, return trade lie stated in London in 1932 at a banquet in Spitalfields that, as Britain could not supply nil our requirements, she could not expect 100 per cent, return trade. Mr. Masters has also used the same argument in the Legislative Council, when speaking on the Customs Bill, but he fails to mention that America has a 400 per cent, return trade, although she is unable to supply all our requirements. The Year Book shows that from 1914 to 1933 the U.S.A, had a favourable trade balance of £58.980.000, Australia had £22,876,000, and 'Canada £20,908,000. These are tome of the reasons why Britain cannot have the 100 per cent, trade return to which she is entitled, because her money is required to pay for these adverse balances. —I am, etc., J. E. HORSFIELD. Nydia Bay, February 7.