EXRERNAL TRADE

Evening Post, Volume CXIII, Issue 80, 5 April 1932, Page 11

EXRERNAL TRADE

DOMINION'S? 'POSITION SATISFACTORY BALANCE HOPES FOE BETTER TIMES ■ The external trade of New Zealand is reviewed in the report of the Council of the Wellington Chamber .of Commerce,'to be presented to the annual meeting on i9th April. "While a satisfactory- balance on trading is shown in New Zealand's favour," the report states, "the iower ngures for exports and the still greater reduction in imports, as compared with the previous year, bear testimony to the dull and trying conditions that-have open experienced in business in the Dominion. Meantime, in the face of increased taxation-imposed with a view to bringing equilibrium in the Government's finances) which also'have'felt severely^ the strain .of the depressed conditions, there have been ■ strenuous efforts made- by business folk to reduce costs to be in some keeping -with the 40 per cent, reduction in s export values and in national income, and the process of readjustment in all phases of business activity, still engages the closest attention. It is hoped that this year will see a brighter atmosphere and. a step forward to a. more healthy tone in; generalconditions. ~' . ■ v ' "The external-trade figures/for 1931' exhibit a continuation' of the downward movement which' began in the previous year, and both exports,and imports are much lower than in 1930, showing the lowest totals since-1918. The decline in' imports in 1931 being greater than that in exports the- year shows a very creditable surplus of exports over imports of just over ten millions, which isTthe second highest' excess of exports since 1919. ■■■..■-.■. ; ■■■; ■ A HEALTHY FEATURE. ■ ''If is made;';for the exchange factor with exports/ the. trad-'1 ing surplus in favour of-the Dominion will approximate seven millions,, a figure betokening a very favourable overseas trading' position for New Zealand and one that portrays a healthy economic j feature in Wd'D'ominion's 'trading ex-! changes.. ' ■■'■ ■■■'■■":-. •■■ , "Comparedl with. i l93o ; 'expprts, apart from specie, show, -a- ■■decline-. ■-• of £10,021,751-, or 22 per cent;, while imports are less by .£17,905,489,- or, 42 ,per cent.; but compared with. 1929, the decrease is £20,011,297, or 36' per cent., in exports, and. £23,976;184, 0r.49£ per cent., in" imports. general -worldwide conditions which have caused the drop in. export values are, .■ too'well known io cali for/comment, but it: is fortunate for New Zealand that the fall was anticipated in the early stages and the prompt action of the banks in. raising-- interest and exchange rates cheeked' importation earlier than'has' been the case.oa other occasion's ."when a drop has occurred in exports. > "Conditions generally appear to be improving in .Great Britain, our principal njarket, and if this improvement continues it can be expected'to be reflected in New Zealand later-on, but it ,is too late to affect the current season's exports, and consequently 1932 will not show a. high total for' exports. The Government's action in controlling London credits from our exports may affect a restriction on importation this year, as in the absence of loan money being available in London the- Dominion:^sin'terest bill, must be me,t-from the proceeds of bur exports, and' only the balance left' after/that will, be/available for imports. ; There is still a quantity of wool held in New Zealand, and ,as flocks and herds;are-still increasing, a growing volume of exports is assured, and should the improvement in England be maintained, improvement may be,anticipated in exportyaliies for next season, and with increased production greater benefit will -be reaped from this." ■- ■ : :_ ../ ■ .;••'. ' INCREASED OUTPUT.; Commenting upon a. comparison; of the.rise in items of export for the past three years, the ■-report, states:—" The year exhibits a further heavy decrease of'1 £9,787,664,, or, nearly 22 per cent., and the totalis1 20. millions less than that of 1929. In the .latest year-T^ool has ,a. drop of 2 millions, frozen. meat 2; millions, butter "and cheese 3 millions, sheep-skins 'th'reequarte.r1; million, and allother/items show, some decrease except gold. Wool has a drop of .10 millions, in the two; years.•" The' decreases would have been heavier but for increased output of wool, meat, and butter;'1' "■''' -: ~-.■■ ■..;■.. ■:, ' A comparison^ is ' also mado 'of : the f quantities of the principal export's for the.; last.-thiee,; ypars,■ and, the Teport* adds:--"Wool has an increase."of .7 1-3 per cent.' in'weight, but a; decrease of 28 per cent. iri. value. Frozen meat is 2i per cent, more in weight, but 19 per cent.: decline in. value. The.-value/of butter is 10 "per icent. ; less for'-'SJ -per cent, greater weight) whilo cheese has a falling oft of'9|"per cent, in weight and.3oJ per cent, in value. These prin-cipal-items' show an aggregate' decline in/value of £7,392,338, which would have been some £1,200,000 more, but for the increased output of wool, meat, and butter.". ' . .' ' •■ "Imports show a decrease of £18,212,954, or 42^ per cent.y the total .is practically 50 per cent, less than'in 1929.''"', ../■,' .'