“CARE AND ECONOMY.”

Hawera Star, Volume XLVIII, 21 February 1925, Page 6

“CARE AND ECONOMY.”

\AT JO N AI, FIN ANC E ADAH NISTRATION. TRIBUTE FROM TRADE COMM ESS LONER. **The present financial position of Now Zealand boars witness to the continued care and economy that have boon devoted to its management and to the steady progress that is being made towards stability, ’ says Air. X. Elmslie, Trade Commissioner, in his report to the British Government which has just been 1 released for publication. “The policy* of the Government is to improve the means of access to primary producing districts, to add to the amenities of country life by bringing within the reach of 'settlers telephones and electric-power for operation ol labour-saving appliances, and to make more land available for closer settlement by drainage, irrigation, and other means. To tills end, the Railways Department is improving and linking-up tile, existing railway system to provide for the main traffic routes between- important- centres, and the Public Works Department is embarking on a. new programme of road development, to feed and supplement the railways. Work is being pushed forward on hydro-electric undertakings, which are so designed as eventually to link up and supply the whole Dominion on an organised .system, and telephone services are being greatly extended. Rate of Borrowing.

“This policy of development is necessarily expensive, both to the central government and to local bodies, on to whom part of the. burden must fall, and, although very considerable sums have been found out of sitrplu; revenues for carrying old public works, borrowing is unavoidable. The completion of the programme of works that has already been forecast will take a number of years, and yearly additions to the public and local body indebtedness a re. therefore to be expected, but, since the loan money is being expended on cheapening production and transport, and promoting settlement atul further production, and thereby strengthening and increasing the industries o-n which the- prosperity of the country depends,' there is no reason to suppose that the growth of the rale of indebtedness is greater than is warranted by the increase of productive capacity of the Dominion. The vital consideration is that borrowed money should he so used as to he of permanent benefit to the real welfare of the country, and the wisdom with, which the finance of the Government lias been conducted during the- past- few years creates confidence that this is being done." Afr. Elmslie comprehensively reviews finance,' production, trade, and public works in the Dominion, and adds some pertinent comment as a result of his investigation of Britain’s trade position with New Zealand. How British Trade is Lost. “1 remain convinced,” he says, “that a very considerable volume of trade is being' lost by British industry through lack of knowledge of the market, failure to give service, inefficient advertising, and inadequate attention to selling organisation. I have had so many cases brought to my notice, in which business has been lost through failure to understand the requirements of buyers, the habits of the country, or the channels through which business can best be obtained, that it is clear that very many firms do not appreciate the necessity for such knowledge, or for adjusting their methods in the light of its teaching.” Air. Elmslie commends the practice of directors oV senior members of staffs of British firms, in visiting New Zealand, but remarks that where this was not done firms appeared to attach little value to the services of their agents in this connection. Failure to give “service” was another frequent cause of loss of business. He quoted the case of a doctor, who wished to deal with British firms, but had to order an electro-medical plant from an American house, as it was in, the position to guarantee immediate supply, installation of plant, and spare parts. This order was followed by one for ail X-rav outfit, at a cost of £I4OO, although an English plant of proven efficiency could have been obtained for £I2OO. In advertising, in the supply of catalogues amt trade and technical information and show cards, United Kingdom, firms were, as a whole, far behind their foreign oompetitors.

Destination of Goods. In view of increasing competition, it was important that selling should be conducted on a carefully-thonght-out plan, prepared uith exact knouledge of the market and the system of distribution that urns in existence. Dealing with the channel through which goods should be distributed, the Trade Commissioner refers to the grievance of the wholesale houses, caused by the fact that very ■ many retail houses in the Dominion imported direct and made their purchases through! indent or commission houses in England on wholesale terms. It was difficult to suggest -a remedy, but the position Mas unsatisfactory, and tended to influence wholesale houses transferring their business to foreign sources of supply, whose goods could nqt readily be obtained direct by retailers. He recommends manufacturers to inquire more closely into the actual destination of goods supplied to the order of a commission or indent house, and to consider whether it would not he possible to allow more- favourable terms io genuine wholesale houses.