VISIBLE TRADE BALANCE

Evening Post, Volume CXV, Issue 121, 25 May 1933, Page 10

VISIBLE TRADE BALANCE

Trade returns for four months of the calendar year reveal an increase in the favourable visible balance of £323,000. This year the balance is £8,023,000 compared with £7,700,000 for the January-April period of 1932. Allowance must, of course, be made for the fact that-these returns are in New Zealand currency, and that this currency for February-April this year is 25 per cent, depreciated. Last year the depreciation was 10 per cent. Nevertheless the statistics disclose a strong trade position. Though export values have fallen, dairy produce values very heavily, the Dominion retains a substantial credit, ample for the satisfaction of the invisible imports of interest, shipping charges, and so on.' With free play for economic forces this would at once lead to a fall in the exchange rate, and there would be a moderate increase;in importing which is now held down artificially by the high exchange costs. Provided that this increase was kept within bounds it .would help the Dominion by a revival of business, and it would certainly help our best customer. Though Mr. Coates stated recently that no protests have been received from British manufacturers against the high exchange there have been numerous critical1 public references. Another was recorded in the cable news last night. A Conservative member of the House of1 Commons asked the Dominions Secretary if he would explain to New Zealand that it is impossible to continue to import their agricultural products unless the Dominion is prepared to buy manufactured goods. Mr. Thomas, while giving the officially correct reply, "We cannot make representations on a domestic* matter like the exchange rate," made the significant remark: "I am quite sure that will be read with interest in New Zealand." It should be read and marked, as indicative of British opinion. It seems that farmers are beginning to take note of this opinion —because they perceive the possibility of quota checks on British buying—and they are doubting the value of high exchange. It is time the full facts were placed before the public for consideration, and especially, in view of the big visible trade balance, the whole of the facts bearing on the Government's dealings in surplus credits. It is not,sufficient'to show, as the Minister of Finance showed lately, that the surplus is comparatively small, but also how the funds have been applied to keep it so! This information is still withheld.