WELLINGTON NEWS

Hokitika Guardian, 18 June 1931, Page 5

WELLINGTON NEWS

DROP IN EXPORT VALUES.

(Special Correspondent). WELLINGTON, June 16. In 1928 and 1929 peak prices were obtained for our produce,, and the extreme prosperity c-f those two years, no d.oubt made us all fancy that high prices had come to stay, and with them high prosperity, and so we indulged in extravagance, and entertained extravagant ideas.. Now we are to a large extreme amazed and distressed at tlie pared. It. seems very difficult to ,get fall in prices and are thoroughly unprethe “man-in the street” to realise that conditions have changed completely and for the worse and we must now work down to the new level. This of course is very unpleasant and spacious arguments will not help, and if we Face the facts it would he seen that adjustments are inevitable. 'lt may be help ful to again emphasize the fail in export values. The official figures for our exports cover tie four months v o the end, of Aril, and the declared val- , ue of the exports for that period was £i4,/04,289. For the four months of the peak year of 1929 the exports were valued at £29,608,.'571, so that this year there is a shrinkage of £14,904,832 or. more than 50 per cent. Compared with two yeas ago the national income has contracted 50 per cent. For the four months of last year the total was £21,518,115, and compared with Inst yeah there is n contraction of about 33 per cent.

When we come to examine into the various export items it Ls found that every item hut ope has realised less. Thus wool which i pthe first four month of 1929 realised £11,677,584, has brought in for the first four months of this year the meagre sum of. £2,952,244, but lit is ncessary to bear in mind that we have not exported all our woo', many, growers are holding the last season’s clip and it is known that some are holding the clips of the past two seasons. The held over wool would probably represent at the outside £2,500,000 at current values, and assuming this to be the case even then the drop in wool would amount to about £6,200,00. In the four months of 1929 frozen meat brought in £4,610,908, this yea rthe return is £3,891,293 notwithstanding an increase - in sliip>— ments. On the same comparison butter dropped- from £6,510,678 to £4,043, 834, and cheese from £3,499,361 to £2,171,575. The above four items are our main export products and in- the aggregate they have declined from £26,304,531 to £13,058,946 or just over 50 per cent.

The fall in commodity values began towards the end of 1929 and continued all last year gathering momentum, and even now it is difficult to say whether bedrock is reached. Competent- judges declare that the bottom, has been waellefl ,f ffnd 'everyone will hope- sb;-but what then ? Will there be an upswing of the pendulum? It can be safely predicted that there will he an ipwvrd movement in commodity prices, for the depression has not a perpetual lease of the world’s economics hut when the upswing will begin is beyond the capacity of any one te foretell, The upward movement, when it begins will not be pronounced, at mc-st a 10 per cent advance would-be ns finch as can. he expected. Of course if the European conditions show big improvement and; unemployment diminishes we may expect an increasd consumption and more competition, but such a change in the European situation is not in sight. The season is a good one for Australia, that is to say the climatic conditions -in the Commonwealth are favourable for a big output of primary products which come into competition with our own. On the whole there dees not seem to be any prospect of any upward trend in values this year and that being so are we to carry for the next twelve mouths the present army of unemployed. The community can scarcely stand up to the strain now and what it. will be like during the next two months must be left to the imagination. There is no doubt that as a consequence of the depression we must all make radical changes in our habits. We must think in half-notes instead of fivers, and go without a hundred and one things that in 1929 we believed to be absolutely essential. The community will adapt itself to the changed conditions and has [already began to do so. Those who are restive and troublesome are the misguided Unionists but-they must come to heel, for thy will find it very unpleasant hanging their heads against brick walls.