TRADE BALANCE

Evening Post, Volume CVII, Issue 83, 7 April 1924, Page 3

TRADE BALANCE

ON RIGHT .SIDE

CHAMBER OF COMMERCE

REVIEW

IMPORTS AND THEIR LESSON.

The balance of trade is still on the risht side, but not to the extent that is needed to meet uutside obligations.—Wellington Chamber of Commerce's annual report

The report of the council of the Wellington Chamber of Commerce for the year ending 31st December, 1923, has been received by members. It refers to the last annual report of the chamber, in I which it was remarked that New Zealand had passed through the 1920-21 period of depression, and progressive improvement leading to more prosperous times was anticipated. "This anticipation has, it may be claimed, been realised, and commercial and financial conditions show a satisfactory measure of improvement. Exports for the year just closed show an I increase of £3,213.798, and while the 'total is not.quite so large as those of j 1919 and 1920, it must be remembered '; that those years included large clearances jof old stocks, and were therefore fi-ctiti--1 ously high. There are hardly any such old stocks included in the latest year. Dairy produce is mainly responsible for the improvement in the last year's figures, but wool and frozen meat show very good value for the smaller quantities .shipped. Importation shows considerable expansion, and the year's total is high, though still some eighteen millions less than that of 1920. The balance of trade is still on the right side, but not to the extent, that is needed to meet out side obligations." . Tables are furnished showing the trade balances at the end of each calendar year from 1918 lo 1923 inclusive.' THE MAIN EXPORTS. The main items of export for the past three years are also shown in tabular form, and remarks made upon their value and volume. It is remarked that "The calendar year is not the true export season, as it includes part of two seasons. This applies especially to wool and dairy produce. In the case of wool not more than 15 per cent, of the year's shipment would be current season's, benefiting by the greatly increased prices recently received. These prices must have a very large effect on later figures, and help to swell 1924 returns considerably." HEAVY IMPORTS. Dealing in detail with the importing side of trade of the Dominion, the council reports:— The period of liquidation of excessive stocks brought about by the over-impor-tation of 1920 and part of 1921 caused decided limitation of imports in 1922. Now, however, these stocks are fairly well cleared out, and 1923 shows a fairly large increase in imports. The total of £43,471,906 for the year is heavy, and it may be that in some lines imports have been rather too large; but importers have had their lesson, should benefit by it and keep their orders within reasonable bounds. ' Soft goods form over a fourth of our total imports, and in tin's section the increase lias been heavy. The most important items in this division (with 1922 figures in parentheses) • are: Apparel £2,094,198 (£1,503.163),. boots and shoes £1,094.519 (£622,931), cotton piece goods £2,501,829 (£2,092,760), woollen piece goods £1,154.887 (£829,285), silk piece goods £644,203 (£591,167), drapery £545,904 (£444,958), hosiery £566,----983 (£641,589), carpets and oilcloth £695,859 (£400,940). Metal goods and machinery show a moderate growth. The main lines under this heading were electrical machinery £1,448,884 (£1,055,645), general hardware £575,601 (£399,759), galvanised iron £538,663 (£446,215), iron pipes £494,825 (£357,716). Foodstuffs show small growth, and sugar is the main item here—£1,454,940 (£1,434,196). Beverages show some 45. per cent, increase; wines and spirits are £979,271 (£667,125), and tea £818,848 (£547,121). Motor vehicles show exceptional increase, being,£2,416,985 against £881,----714 in 1922; petrol £1,611,820 (£1,701,----551), rubber-tires £834,132 (£533,402), paper £1,099,226 (£709,645), tobacco and cigarettes £1,467,142 (£1,318,605) timber £637,302 (£550,588), china, glass and glassware £714,426 (£659,211), leather and manufactures £597,951 (£475,285). The trade figures for 1923 show a vast ■improvement over the previous year--exports totalled £45,967.119 and imports £43.486,544—an aggregate of £89,453,----i oon °r an iucreaso oi £11,721.974-over 1922. ARE MOTOR-CARS LUXURIES? Imports are for Customs purposes valued at the current domestic value in the country of origin with 10 per cent, added as the estimated freight and other transit charges, and how far this 10 per cent, accords with the actual- charge's paid by the importer may affect tbn trade figures to some degree. Tho large increase in motor vehicles—£2,----7- '985 in 1923 as compared with £881,----714 the previous year—is somewhat surprising, .for though New Zealand may show its partiality for modern and up-to-date transport, yet the motor-car is still to be looked at as mainly an article of luxury. • Another .fact is that white our exports have been showing increased values, the quantities shipped have not j evidenced . the same ratio oE increase j and with imports on tha upward trend the position needs to be carefully observed. THE PUBLIC DEBT. .- New Zealand must annually provide between £5,000,000 and £6,000.000 for j interest on har national arid municipal i debts owing overseas, and our trade surplus for 1923 of under £2,500.000 would be looked upon as an adverse balance if one' did not, take into' consideration the greatly increased prices for' wool and other primary, products that will be received in the Dominion this present year. Much of this produce will be, shipped in the early, months of 1924, and will assist in the adjustment of exchanges; but in any case the margin will be small, and the whole situa- , tion must be handled with caution, even with the fact in mind that many of the imports consist of loans' raised in j London' and sent out in the form of ma- . teria'ls. TRADE OVERSEAS. The council reviews the openings for New Zealand trade in countries other j than the British Dominions as follows :— Further interest has been displayed, during the year in' the possibilities of trade with the Dutch East Indies and the Straits Settlements, but a -proposal to send a mission of business men with exhibits of New Zealand iiroduce and manufactures did not materialise. In 1923 New Zealand exported to the Dutch East Indies produce to the value of £894, and took back roods to tho value of £1,J25,539 (niosl.y benzine), so.there is plenty of scope for the trade to be more | truly reciprocal. A regular through ser- ■ vice from New Zealand, with refrigerated space Unit will rmilila transhipping ' ebiu-Ecs in Aufctraijii Ui bo tivokli?U, i,« cu-' I seutul lo the iuvouvuble development of

this market, and the Government, has just recently arranged for a direct steamer service leaving New Zealand three times annually, in May, September, and January, and calling at the principal Java norts—namely, Sourabaya, • Sama'rang, and Batavia, and at "Singapore. Shipments in the intervals between these sailings will be available by transhipping via Sydney. Accordingly there will soon be an opportunity for profitable'trade in the high-grade, products that New Zealand exports, and our merchants should take full advantage of this to test the market there and establish trade connections. A new steamer service has been inaugurated between France and New Caledonia and other French possessions in the Pacific that calls at Panama, Papeete (Tahiti Islands), and Wellington (X.Z.). In January, 1923, a French Commercial Mission upon the French cruiser, Jules Michelet, visited Wellington with a pictorial exhibition of the productions of France, and in November, M. de Cremiers, of the Messageries Maritimes Co., ; passed through Wellington, and as the outcome of-these visits and the-steamer service previously referred to there should be an increasing interchange of trade between France and New Zealand. China and South Africa.—Another new ■ steamer service is now running between Hongkong and ports in Western South America, and the central position of Wellington has earned its inclusion of a port of call en route. PACIFIC AND OTHER TRADES. Samoa is still being watched with interest, and the general manager of the Crown Estates in ■ Western Samoa addressed members at the Chamber. The offering on lease of these Crown Estates will give an opportunity to private enterprise to develop these properties. A direct service is now being run to Wellington from Montreal and New York ' by the Canadian Government Line. | The embargo against trading with-Ger- \ many and other late enemy countries was I lifted on Ist September, 1923, but there has been little time to judge of its effect, ! though importations so far have been of little moment. TRe Wellington Chamber gave a lot of consideration to this question, and was very much in favour of further delay before importations should be_ freely admitted. While quite appreciating the fact that the payment of reparations depended largely upon Ger-, many's opportunities for trading, the extraordinary depreciation of currency raised other factors which made unrestricted trading somewhat hazardous. However, the Customs Department has watched the situation closely, and is to be congratulated on ' the regulations framed by it, ' which have so far met the case very well. RELATIONS WITH GREAT BRITAIN Visits paid to Wellington during the year by representatives of the Ports of London and Liverpool are referred to, and Mr. Noel Elmslie, British Trade | Commissioner, is described as " already i having done much to further Imperial trading interests." Representation at the British Empire Exhibition is dealt with in extenso. It is to be gathered from the report that " as the New Zealand pavilion at the Exhibition will be under the charge of Mr. Alex. F. Roberts as Commissioner,, r.nd from the exhibits we have been fortunate enough to see, will, we feel sure, bn a worthy representation of this Dominion. The Wellington Chamber of Commerce took up the matter of seeing that Wellington, as the capital city of the Dsminion, received due publicity at the Exhibition, and a special fund was inaugurated, and from this we have been enabled to send forward a very fine collection of photographic views and ] enlargements that, illustrate the claims! of Wellington and the vicinity to recog- I nition, whether by the tourist or by the settler. The Wellington Harbour Board has also sent to the Exhibition photographs of the port and wharf facilities, so that Wellington should make a good display. Literature relative to Wellington will also be available at the Exhibition for distribution, so that efforts will not be wanting to see that our city is put on the map,' and after the Exhibition we hope to be able to extend this publicity to other parts of the globe. Thanks must be expressed to those firms who ! have made this display possible by their ■ contributions to this special fund, and the prominence given to Wellington should be amply repaid by increased trade and an influx of visitors, who should contribute to the prosperity of the Dominion by way of the ' invisible exports ' which the tourist traffic can give." As a further means of " boosting " the Dominion and its Court at the British Empire Exhibition, the chamber took up the suggestion that photo postcards of Dominion beauty spots be dispatched to friends, relatives, parent farms, hospitals, etc., in the Old Country, and' a " postcard day " has been named for Thursday, 24th April, 1924, when it is hoped that a monster mail will go forward and arrive in the Homeland ', ie. w. weeks after the' opening of the Exhibition, which will draw marked attention to this Dominion's participation :n this Empire event. The winter carnivals to take place in July, and summer carnivals to take place m January, instituted by the Wellington Carnival and Advertising Association, and the outdoor and indoor attractions provided are recognised as having done much to attract visitors. " The thanks of the community must go out to those who have assisted to make these carnivals ' a success," reports the council. I