AMERICAN TRADE

Evening Post, Volume CXXII, Issue 68, 17 September 1936, Page 12

AMERICAN TRADE

WITH BRITISH EMPIRE

THE PEOPLES' NEEDS

INTERCHANGE OF GOODS

"Evening Post," September 17.

On the official returns of direct ship- ; ments of goods between New Zealand and the United States the balance gen- ■' erally appears to favour the latter ;, country. For instance, the position as! , disclosed by the Government Statisti- , cian of New Zealand for the past two years, showing the value of trade between the two countries in New Zea- ' land currency, was as follows:— £ (N.Z.) £ (X.Z.) 1935. 1934. • X.Z. esports to U.S.A. 2.468,071 1,250,364 ... X.Z. Import* from U.S.A. 4;534,05S 3,000,613 Excess Imports ..£2,006,015 £1,750,249 These returns are for direct shipments of merchandise to and from the .. United States, therefore they exclude the purchase of goods of New Zealand origin made in other countries and '. shipped thence to the United States. , Were such returns taken into account . they would show that the balance of ! trade appearing adverse to New Zea- '. land in the above comparative figures , would call for some revision, if it were sought to show f,he actual trade balance between New Zealand and the .' United States on the basis of exchange , of merchandise. ' Mr. George E. Quisenberry in the journal "American Automobile" has been investigating the commercial re- ' lations between the United States and • all the Dominions, colonies, and de- • pendencies under the British Crown, i He has come to the conclusion that the commerce of the countries he takes in review is nearly double what it ■ was in 1932. He states that in five • years, despite the depression, the inter- • change of gosas and commodities be- . tween these two groups of people totalled about £830.000,000 sterling, or ' not far frctn £200,000,000 sterling year- ' ly. . "It is a great, mutually profitable : trade," Mr. Quisenberry remarks, "now ' nearly double that of the low point of ' 1932; and promising further expansion >if allowed to develop on normal. . friendly lines." ; TRADE DOUBLED. Mr. Quisenberry quotes in tabular form returns based on official statistics to show that "the commerce is practically balanced. ... In other words, sales and purchases were practically equally balanced —a remarkable fact for the readers of this magazine in the Empire territories. Exaggerated statements, currently reported in several Dominions, that the United States only sells, and does not buy, are shown to be incorrect. The exchange, year by year, is practically even." It is not convenient to provide space in this column for these tabular statements upon which the writer bases his eon- . elusions. He shows, however, that the ' United States buys wool, jute, tin, ' rubber, ores of .yarious' sorts, spices, ; tea, furs,' lumber,' diamonds, and a ■ long' list of other essentials. It pays for these impprts^by exporting motor . vehicles, agricultural implements, elec- . trical and radio products, industrial machinery, office appliances, and so on. The exchange is so nearly equal that financing of this huge business is without strain on the currencies of ■ either group. This trade has grown under normal economic factors, over a , long period of time, with large sections of the population dependent ' upon it for their daily, livelihood, . "Governments and politicians, at times, have sought to deflect it," Mr. Quisenberry remarks. "Many artificial'legal barriers have been placed against it. But the natural forces of business and economics have, largely defeated these ..efforts, and: will ,cc?- ---' tainly do so in the future. Empire- ' American trade rests solidly on the •needs of the peoples in the respective 'areas, and cannot lightly be altered or : changed." • •-. ■;' '■•- ... Canada's ■ experiences of trade with 'its neighbour receives particular men-, tion showing how under the recent ' commercial agreement (January 1, •1936) between the Dominion and the v United States, "the friendly pact is enlarging the volume of business across r the bprder. giving employment to many .workers and aiding-the economic recovery of both .countries;" . ',",;' STRIKING A BALANCE. i ■ The Canadian pact was first of .the United States trade agreements . with any British Dominion. Prelimin■4 ary studies for such an agreement have •' been undertaken with Great Britain, but finality is not yet in sight, due to : the complex financial and economic ' factors of the trade. . Although the balance-of-trade ', problem as between Australia and the 'United States is not yet solved Mr. •Quisenberry observes that American 'trade with British Empire countries in ! general is now "too nearly balanced to .permit fears for the future." Last . year American exports to the Empire '~territories reached the large total of 527,000,000 dollars. Imports into the States from the same territories : were slightly larger, amounting to .560.000,000 dollars. Exports from the United States ex- ,' ceeded imports with Australia, Bar- ; bados, British East Africa, Canada, Hong Kong, Jamaica, New Zealand. Trinidad, the Union of South Africa, and smaller territories. On the other hand, imports purchased by the United States exceeded its exports in the case of Aden, British Honduras, British India, Malaya, Cey: lon,' the Gold Coast, Newfoundland, Nigeria, and several smaller territories. ■' The overall balance was slightly ; against the United States —that is, its • imports from the Empire exceeded its 'exports. "Thus, this mutual trade stands on a four-square basis, and any unfriendly statement that the United States does not buy, but only sells, is proved untrue 'by the actual record," Mr. Quisenberry ,'remarks. • . : Particular reference is made by the 'writer to the American requirements, . consumption and purchases of wool, in '.which trade Australia, New, Zealand, and South Africa participated by direct • shipments. America also draws on the "United Kingdom for supplies of'wool sent thither from the British. Dominions and some of it made up into : woollen fabrics. '■■■ Concluding, Mr. Quisenberry states •that the British Dominions and •Colonies and the' United States as well 'have each made widespread and solid-;ly-based economic recovery. "Between 'them (he states) is a mutual trade of some £200,00,0,000 sterling per annum— • or more. ■ That total is of inestimable •value to each and must continue to .'grow, unless 'impeded by outside, noncommercial interference."