OVERSEAS TRADE BALANCE

Evening Post, Volume CX, Issue 50, 27 August 1930, Page 8

OVERSEAS TRADE BALANCE

Rather more than 80 per cent, of the exports of the Dominion consists of dairy produce, wool, and meat in that order, and with them go their by-products and some exports of lesser value and volume, but important in the aggregate. In ordinary circumstances the Dominion is not paying its way unless its exports exceed its imports by at least £10,000,000. The latest returns of overseas trade for the first seven months of this year show a balance of exports over imports of £7,583,000, and the tendency is for imports to decrease; but the balance to credit at the end of July last year was nearly £13,500,000. Seven months' returns, however, do not tell the whole story. The returns for the full twelve months ended 31st July show that to-day the balance to credit is reduced from £8,300,000 to £870,000. Not only are prices for all New Zealand exports considerably lower this year as compared with last, but external obstacles to exchange of products have been raised, and the world over commodity prices are depressed. Buying in these circumstances is from hand-to-mouth in expectation of lower values; and purchasing power everywhere is restricted. It is impossible with meat and dairy produce to reduce production, and they are costly products to hold in store. But this is not the case with wool, of which it is estimated some 130,000 bales are held unsold in the Dominion. Had that wool been realised, even at as low as £12 per bale, the exports for twelve months at 31st July last would have been £2,500,000 in excess of imports instead of £870,000 as at present. But a new export season has begun, and if prices are low production promises to be greater in dairy produce and meat and wool than in the year that is past. By the end of the calendar year, when the figures are published, it is reasonable to look for a decided improvement in the external trade balance to credit of the Dominion