The Evening Star MONDAY, JANUARY 14, 1924. HEAVIER IMPORTATIONS.

Evening Star, Issue 18531, 14 January 1924, Page 6

The Evening Star MONDAY, JANUARY 14, 1924. HEAVIER IMPORTATIONS.

In round figures the revenue received by the Treasury for tbo period April 1 to December 51, 1923, exceeded that for the corresponding nine months of 1922 by nearly a million sterling. The real contributor to this sign of buoyancy was the Customs Department. While other sources showed minor fluctuations, which on the whole about balanced one another, the yield from duties on imported goods made an advance of rather qver a million sterling. There hns in the past few months been quite a number of bints from financial experts against a tendency they professed to see to repeat tho over-importa-tion which disturbed trade a year or two ago. These Customs revenue figures ought to bo taken in conjunction with the banking returns for the,last quarter of 1923. These latter show that the advances made by tho banks show a comparative increase of over two and a-half millions sterling, bringing the total within measurable distance of the record figures in 1920 and 1921. lit is not likely that, the so recent lesson learned by many business firms has been so speedily-forgotten. Those who have been keeping a watchful eye on the growth of importations declare that there does not appear to be any tendency towards overstocking, .and there seems to be a confident feeling that the dominion’s purchases abroad ore really not in excess of current requirements, and will bo steadily worked off into consumption. Undoubtedly the motor car industry is in large measure responsible for much of the swelling of importations. It is easily apparent that tho limits of the absorptive capacity of our communty for this luxury or necessity, ns the case may bo, have not yet been exhausted. Evidently a stimulus to sales has been given by an extension of the time payment system, which places possession of a car within the reach of marry who formerly regarded it as beyond their means. When dealing with this matter of importation, it may bo opportune to refer to a discussion in Bri | tain > which arose during the recent Freetrade-Protcction election issue. It was as to whether exports paid for imports, or vice versa. On tho one side it was argued that exports would diminish if imports were restricted, since exports paid for imports. But what appears to us to be an eminently fairminded rejoinder to this was made in the following form;—“lf they are,-available a creditor nation can always command the imports it requires on the most favorable terms, since it is in a position to pay for them, and that is an excellent reason for stimulating the export trade; whereas tho conception that imports must be paid for by exports, and that therefore imports should be encouraged in order to force export, places the matter in a much more unfavorable light. Import and export may bo inextricably interwoven; but from the psychological standpoint it is well that the country should realise that it is better to create credits and command imports than to import, with the subsequent necessity of sending something abroad in payment.” Not long ago New 2lealand was temporarily in the latter position, and the experience was not altogether pleasant, though it undoubtedly contributed to an increase in production and exports. The position thereby retrieved ought to be maintained.