THE FALLEN FRANC

Evening Post, Volume CXI, Issue 136, 9 June 1926, Page 10

THE FALLEN FRANC

DANGEROUS WHEN DOWN

IS DAMAGE OVER-STATED?

SOME COMPABISONS,

The complaint of certain British manufacturers that French firms, aided by Franco's depreciated currency, are undercutting them in the New Zenland market, was brought yesterday Under tho notice of a local business man. He took the view that the fall of the franc would probably give both French and Belgian manufacturers certain advantages, and that at particular periods tho gain arising from depreciated currency might even cancel tho margin that tho preferential duty gives to British manufacturers; but, taking a long view, and measuring experience by something bigger than a foot rule, he thought that the franc-using industries would find as much handicap as help in a depreciated currency. It was true that the French manufacturer might be temporarily aided by the fact that tho downward movement of the franc was more rapid than the coneequontial price-adjustment. But there ■was not enough in it to cause us to forget what our Ally had suffered. Besides, was not the franc likely to be restored with Anglo-American help? ADVERSE TKADE BALANCES. New Zealand, in her dealings with ether countries, had some substantial adverse trade balances, but these were incurred not on tho Continent of Europe. The Continent took our boneless beef when our East Coast farmers were prevented by drought from fattening. The highest balance of trade in New Zealand's favour in 1025, so far as foreign, countries were concerned, was recorded in her dealings with .Germany. Ie 1925 New Zealand exported to Germany £1,614,090 worth of goods, and received goods of German origin to the amount of £500,475. In 1926 New Zealand's customers ranked, in value, in the following order: —United 'Kingdom, United States, Australia, Germany. While Germany, our fourth best market in 1925, gave us the big trade balance indicated above, the United States took from us £4,349,758, and sent us £8,885,265. But the United Kingdom sent us £25,572,813, and took from us £44,073,323. These were figures to remember! Canada sent us £3,916,237, and took £423,068, thus piling up against New Zealand a trade balance comparable in volume with that of the United States, and proportionately much greater. The £1,614,090 that Germany imported from New Zealand in 1925 was, he continued, mostly wool. Germany ■was a great prop to the New Zealand wool market, as France was to Australia's. Was Australia to penalise French woollens if they came back for a short time rather low-priced because of depreciated currency? The franc would yet bring to France an economic Verdun, but Franco would win. Good luck to her! FROM THE BLUSH-FACTORIES. There was a notion that France made ft lot of money out of aids to beauty, and that New Zealand complexions were to a large extent manufactured in French laboratories. But he doubted if France was as blameablo as some people thought. He could not put his hand on precise figures, but the following were the comparative figures in 1925 for "perfumery- and toilet preparations": United Kingdom, £75,272; Canada, £11,884; Australia, £10,418; France, £12,315; United States, £33,----313; total of all imports of perfumery and toilet preparations, £145,982. France was also a big supplier of Silk, but even in this line her figures were exceeded by tho United Kingdom, and doubled by Japan, as far as New Zealand is concerned. In 1925 all imports of silk and artificial silk m piece goods were valued at £838,668. Of this Japan supplied £311,921. the United Kingdom £202,795, Franco £157,360, Switzerland £105,172. New Zealand's apparel and ready-made clothing imports (total £2,259,442) included £1,788,837 from the United Kingdom, £75,414 from Canada, £128,----126 from France, and £90,127 from the United States. French success in tires .was undoubted, and New Zealand in 1925 shrewdly took £147,951 worth of tires from France, but in the same year took from Canada £587,071, United States £246,836, Italy £78,476, United Kingdom £54,189. In that year New Zealand's tire imports were valued at £.1137,439, her mo tor-vehicle imports at £3,389,851. Of tho latter huge total France's share was £36,516. ' As a sort of postscript to his remarks on German trade, the informant pointed out th.at a balance heavily in New Zealand's favour was not indicated in the first four months of the current year, tho figures being: New Zealand's exports to Germany, £189,----783; New Zealand's imports of goods cf German origin, £185,936.