THE TRADE POSITION.

Evening Post, Volume CXIII, Issue 25, 30 January 1932, Page 12

THE TRADE POSITION.

You quote the. excess of exports over imports for' 1931 ' as £ 10,340,070, and claim that this large trade balance warrants, a reduction in the exchange rate. The figures are misleading. They have been arrived, at by methods which served well in- the past, but have not been adjusted to conditions - now- obtaining. Our exports are quoted in New Zealand money and our imports in English money. As our overseas transactions are all settled in London in .English money, a reduction of 10 per cent, has to! be made from, our exports to cover conversion from New Zealand to English money. * This is £3,500,000.1 Further, a substantial reduction must be made from the declared f.o.b. values of our dairy produce exports. Probably 85. per cent, of this produce was shipped on consignment, and as the market throughout the year was a falling'one realisations were much less than; declared '£.o.b.- values: one -million to one jand a halfmillion less. This will reduce the excess of-exports to between £5,000,000 and £6,000,000, an amount;quite insufficient to meet our engagements without borrowing, especially when the adverse balance that nearly always obtains on invisible exports and imports is • taken into account. N , " , 1 Tho problem before* this country is the maintenance of farm production and tho restoration of farmers' purchasing power. Any man in a high, responsible position who is not assisting to solve this problem is failing in his duty.

[The abovg statement is answered in our leading columns to-day.]

"Tho State Forest Service should be maintained as a separate Department in order that tho fullest benefit may bo derived from its operations; also, to lower the efficiency of any of- its branches of .work' would be false economy." The above is the effect of a resolution passed unanimously on Thursday by the Council of the New Zealand Forestry; League, ' i i