NEW ZEALAND'S OUTLOOK

Hawera & Normanby Star, Volume LXII, Issue LXII, 21 June 1911, Page 4

NEW ZEALAND'S OUTLOOK

HON. T. MACKENZIE REPLIES TO

MR BEAUCHAMP

BX TEnEGEAPH—PEESS TIOK

PALMERSTON N., June 20. At the opening of the National Dairy Show yesterday, the Minister for Agriculture, speaking at the conclusion of the Governor's address, replied to the statements made by Mr Beauchamp, chairman of the directors of the Bank of ''New Zealand, at the annual meeting of the bank. Mr Beauchamp had pointed out a deficiency of £2,342,000 between the interest requirements and the surplus of exports of the Dominion, and claimed that the coming year promised to be one of low prices. Mr Mackenzie claimed, that the four years quoted were insufficient to base a conclusion upon, as the years included two very serious ones brought about by the Wall street crisis, and the third year had been affected by a serious drought. He also claimed that it was unfair to estimate the position of the country by reviewing the exports and imports and balancing the differences, as there was the great internal wealth of tFe country to be considered.

The bank president's forecast of low prices was not borne out by investigations, and Mr Mackenzie claimed that never in his memory of the world had there been such trade prosperity, and, apart from any political upheaval any where, they might look with confidence to the future. In pointing out the errors into which the president of the bank had fallen, Mr Mackenzie said that if they took the figures for 1889 to 1910, thew showed that our exports exceeded imports by £650,000, whereas from 1870 to 1888, the imports exceeded the exports by twelve millions. This snowed the enormous change which had come over the country. Since 1889, the increased wealth, after deducting the increased debt, amounted to £211,000,000 which left an enormous reserve against such temporary differences as Mr Beauchamp had called attention to, and which were far outweighed.

So far from Mr Beauchamp being right about prices, there was every indication tivat Butter, cheese, meat and wool would hold the' present prices, and even reach enhanced prices. In spite of the increase of Australian butter ,our butter was always demanded at higher rates than Australian. Our meat realised higher rates than Australia's. When Canada had reciprocity with the TJnited States, her competition in the cheese market in England would be relieved, and there was every reason to believe that great European markets hitherto closed would be opened to our meat, while the wool-using peoples were increasing greatly in number, and woolbearing flocks were diminishing. He had gone thoroughly into this matter, and as he had had some success with his forecasts before, he preferred his own conclusions to those of Mr Beauchamp.