WELLINGTON NEWS

Hokitika Guardian, 2 December 1929, Page 2

WELLINGTON NEWS

TRADE,.AND FINANCE

(Special Correspondent.)

WELLINGTON, Nov. 29

Retailers generally are no doubt looking forward to good Christmas trade and there is no reason why they should be disappointed. The big shops have already begun catering, for the trade of the festive season, and tAvo of the big stores in Wellington have impressed into their servipe the aeroplane for introducing Santa Claus. However, to return to the, trading position. The export and import returns for the ten months ended October 31st show an increase of £4,048,943 over the corresponding period of last year, the figures being £40,764,226 as against £3(5,715,283. It must be obvious to everyone that importers do not increase their imports unless they are, certain that there is a local sale for their merchandise, and the fact that there is this substantial increase in the goods imported is proof that good trade is expected now.

It must be remembered that in the past two years the trade balance has been very much in our favour, and there was thus ample score for increased expenditure for property improvement and. domestic requirements, and that more has been expended in these directions is shown by the weekly figures to the Government Statistician by the banks. For a considerable time the deposits have exceeded thek advances by ft substantial nmount,.. and the complaint was that the money was not being used but was left as deposits with the banks,' and the jbanks could not find full use for such deposits in the way of advances. But the position has changed, a good deal since and the monthly figures show that while the deposits have remained more or less stationary, (he overdrafts have expanded, and the excess of deposits over advances has nearly vanished. ' Thus in the month of July the deposits amounted to £7,469,865, in August this excess contracted to £4,637,399, and in September there was a further shrinkage to £2,565,738. For the first weeks of October the excess of deposits had declined to £18,799, the figures being deposits £53,110,519 and advances'£s3,l2l,72o. Thematic of advances lid' deposits' ha':; gohe lip 'frdin about 81.55 per cent to about'99 peri cent, this ratio will not continue for as the {wool, v ‘meat, and milk.'chetjues come in 1 nverdfaft's Will be 1 reduced. 1 : I

The conditions r at the'momfent appear healthy Avhatever may' be. the future outlook,, and thus we are warranted in believing that ‘ thb' Christmas' trade of .this year will he up to the standard if it doeino't exce'ed ) that 'olj last year. There wifi, however he a decline in investmen^ji,, Ijhat .say trading in securities'on the Stock Exchange will ease off and brokers realise that fact

and s'o -they ‘take this long vacation atChristmas. A new (factor arises in connection with share dealings and that is unsatisfactory conditions ruling taxation-ihfist ! have 'ton adverse effect on many industries which may result in smaller dividend distributions. If that fcAto tvs’-then share values must-' recede. " 1 ' |

PRODUCTION AND 1 COSTS. ; I It is af.c(uestion hdw long a-'time will elapse before the workers realise that they cannot go on increasing wages without reaching the breaking point, j So far as the primary industries of the Dominion a|eV]fencer ned;•''-further.,.lij-Cc crease in wages is > quite impossible uri-j less it is intended to ruin New Zealand. The freezing workers are asking ’ for a Dominion award .which may be all right, but if this means an increase in : wages it is all wrong. , | . It is stated on very good authority that every freezing company, or at the most of them, have made heavy. losses in the past season or two. It would be very interesting if it were possible to calculate the losses made by freezing companies during the past ten years. As is well known many freezing companies have gone into 1 liquidation, and those who found cap’i- : tal for these concerns have lost all j their money. j Prices in the terminal markets are low, and, the price of “fats” in the Dominion is not encouraging. The industry cannot stand up to any increase in wages, on the contrary a reduction in costs of production- is necessary. One remarkable feature about the frozen meat Industry is the fact that notwithstanding the existence of the Meat Board, which is a semi-political concern, clothed with enormous powers, losses have been large.

Obviously the Moa! Board can do nothing, and it l : really of little practical use, and it is a question whether the time has not. arrived' when the various hoards should he amalgamated, and savings thus effected. Mr F. V. Sanderson, who represented the (freezing companies, said that it was hoped that the industrial conference, held in Wellington last year would engender a true spirit of co-partnership in industry between capital and labour, 'flu’s co-partnership idea is all moonshine, for any amicable scheme of operation between labour and capital would be detrimental to the vested interests of the Union secretaries and to those who describe 1 themselves as “We of the Labour Party.” It is bv keeping Labour and capital apart and stimulating antagonism between the two that the leaders of labour thrive. To many of them it means a good living, a better living than can he secured by many of those who they mislead. I