N.Z. TRADE FIGURES

Hawke's Bay Tribune, Volume XXII, Issue 35, 25 January 1932, Page 5

N.Z. TRADE FIGURES

BUSINESS MEN PLEASED. IF GOOD BALANCE CAN BE KEPT UP CREDIT POOL WILL BENEFIT. Christchurch business men express considerable pleasure at the announcement that New Zealand had a favourable trade balance of over £10,000,000 at the end of last calendar year. The figures for 1931 were: —Exports, £35,156,028; imports, £24,812,958; and for 1930, exports, £44,940,692; imports, £43, 025,914. The values shown for exports are declared f.o.b. values in terms of New Zealand currency, and the imports are valued on a basis of the values in exporting countries plus 10 per cent. Business men hold the view that if the favourable balance can be maintained the position in respect of the exchange pool created by the Government will be considerably eased. “There is nothing new in the figures concerning the favourable balance.’’ said Mr 11. 8. E. Turner, a past-presi dent of the Canterbury Chamber of Commerce. “The figures for Novem ber showed relatively the same position Tbo favourable balance of over £lO, 000,000 in itself is satisfactory, but what concerns us at the moment is what the balance will be for the next 12 months, for on that depends the sue cess of the credit pool. It is the foundation on which the results of the Government's regulations are built. “If we can keep up that balance the position should be considerably eased, and the figures so far seem to be going satisfactorily. The exchange position and the operations of the pool cannot be judged accurately at present, and much depends

on how the regulations are Interpreted. However, I do unhesitatingly say that the rate should be allowed to follow its natural courseThere are economic laws which are compensatory In their effect, and they should be allowed to operate ” Another business man who is interested in the importing side of trade expressed pleasure at the very favourable balance. “It shows that the importer has been doing his best in tbo interests of the country since the depression started in earnest,’’ he said. “Last year the balance was only about £1,900,000 in our favour, and imports totalled £43,000,000. This year it is £10,000,000 in Now Zealand’s favour, and imports have been cut down to £24,000,000 —by £20,000,000 roughly. The New Zealand manufacturer is getting the benefit of this. “There is no doubt that the New Zealand exchange pool in London will benefit from a favourable balance if it can be maintained, but surely the Government should be allowed to peg tho exchange and not penalise a section of the community which already is doing its utmost in the interests of tho country.” “These figures demonstrate mors clearly tbau dozens of long speeches the necessity of tho people of New Zealand making sacrifices and lighting every inch of the way in the struggle back to prosperity,” said another man. “Our national income shrunk nearly £10,000,000 in 1931 from 1930, and indications are that for the financial year it will have shrunk still further in proportion. We must cut our coat now according to our financial cloth, and public and private economy must be the order of tho day. We have a long fight before us if wo are to get back to the position of 1929, when our export income was £55,000,000 and our trade balance of £10,000,000 in our favour**