THE YEAR'S TRADE

Evening Post, Volume CXX, Issue 137, 6 December 1935, Page 13

THE YEAR'S TRADE

EMPLOYERS' REVIEW

EXPORTS FALL; IMPORTS

RISE

IXTEBNAL COSTS

The report of the New Zealand Employers' Federation, adopted at the annual meeting of the federation yesterday- gives an illuminating review of the trading position of the Dominion.

"As compared with the previous year there has been a substantial falling off in the value of exports, the total values being for the year ending August, 1934, £49,006,069 arid for the year ending August, 1935, £43,115,880, a reduction of £5,950,189," says the report. "The greater part of this reduction is on account of wool, of which the volume of export was reduced by nearly 30 per cent., and the value by more than 50 per cent. There was also a reduction in the quantity of butter and cheese exported due to the exceptionally dry season. The principal exports were:—Butter, 2,679,099 cwt, £11,307,154; cheese, 2,484,287 cwt, £4,302,318; mutton, 979,980 cwt, £1,777,121; lamb, 2,641,713 cwt, £8,282,588; wool, 602,416 bales, £6,475,733; beef, 847,544 cwt, £962,239; pork, 510,461 cwt, £1,371,798.

"Imports for the year amounted in value to £34,770,783 as compared with £23,813,836 for the previous year. In marked contrast to the previous year the visible trade balance this year is insufficient to meet the normal outflow for invisible items, freight, interest, etc. For the current export season present indications point to a better return than has been obtained for some years, the marked improvement in the price of butter being very satisfactory ihdeed." The report contained statistics showing increases in the number of persons employed in manufacturing industries. BETTER OUTLOOK. "The purchasing power of exports in terms, of local prices is approximately, 73 per cent, of what it was in 1914. showing still a price disparity indicating that internal costs are too high compared with export prices, although the position in this respect is definitely better than a year ago when exports had a purchasing power in New Zealand of only 65 per cent, of what it was in 1914," said the report. "On the whole the economic position of the Dominion is now definitely better than it was a'year ago, and-given a continuance of reasonably good prices for exports, the outlook for the immediate future is also better. In Great Britain, the United States, the Dominions, and in some Continental European countries to a lesser degree, there has been a marked improvement in the economic situation in the last few months. New Zealand cannot fail to share in improved Empire prosperity, and with the growing return of confidence leading to increased capital expenditure in our own country a period of increased activity in-general business and an improvement in employment' may be confidently expected. POPULATION NEEDED. "Of paramount importance . to the future of New Zealand is a fairly rapid increase of population. Although from our present developed resources sufficient food, clothing, and shelter could be provided for very many additional people, the population of the country has increased between 1930 and 1935 by only 63,218, or 4.2 per cent: The local market for our production is expanding too slowly to allow of rapid expansion of industries other than those producing for export. While; there is still much unemployment an immigration policy is ruled out, but the need for greater ;population is one that should be recognised by the Government, and with an improvement in the employment figures consideration should be given to practicable means of bringing it about."