The Lyttelton Times. FRIDAY, MAY 14, 1869.

Lyttelton Times, Volume XXXI, Issue 2608, 14 May 1869, Page 2

The Lyttelton Times. FRIDAY, MAY 14, 1869.

At the eighteenth annual meeting of the Melbourne Chamber of Commerce, held on April 16, an address of considerable general interest was delivered by the President, Mr James Jjorimer. simply as a review of Victorian trade during the preceding year it is not without value, but the address, in other respects, is highly suggestive, and can hardly fail to engage the attention of those who watch the progress and tendencies of Australasian commerce. Glancing retrospectively at the year 1868, from a commercial point of view, Mr Lorimer thinks that the distinguishing feature of its trade wjas the prolonged depresiion which existed in general business. Most pjeople will agree with this remark, although they may differ from Mr Lorimer in their estimate of its causes. He enumerates three circumstances which, in his opinion, exercised a powerful influence in diminishing trade.

The first cause to which Mr Lorimer attributes the commercial depression of 1868 is the political deadlock. We have frequently taken occasion to allude to thin, and it is unnecessary that we should now explain how it arose, or in what way it was terminated. Its effects on trade are described by Mr Lorimer. Large sums of money were withheld from the ordinary channels of circulation by the prolonged suspension of public payments, and this necessitated a rigorous economy in the expenditure of a numerous class of the community. The consequent diminution of the retail operations of trade was not the only injury thereby produced. The inability of customers to pay their debts for such a lengthened period disturbed the financial arrangements of tradesmen, unsettled the credit which is so essential in the conduct of business, and created that uneasy feeling of distrust or want of confidence which is invariably hurtful ajnd usually disastrous to trade. The magnitude of the disturbing cause may be judged from the fact that, at the termination of the dead-lock, it was estimated that the enormous sum of £1,618,000 was due by the Government to the public creditors. The

relief to the public mind occasioned by the opening of the Treasury afforded, «&ja Ml* Lorimer, a striking contrast to thefpaiofUl anxiety which universally prevailed a month before. Both events, he* adds, will long be remembered by the commercial men of the colony. - ■*» The second cause enumerated by Mr Lorimer as operating in the direction of a diminution in trade is, the high pfiqo of dour. During the precOding yearaKWe had been a bountiful harvest and' cheap bread. So abundant was the yield, indeed, that 186f.was remarkable for unprecedentedly large exportations of wheat to foreign markets. The immediate result was twofold. The new trade afforded profitable employment to the labouring classess and the shipping, and it proved that Australian wheat was equal if 'not superior to the produce of any of the great agricultural districts oi the world. Towards the end of 1867, the price of wheat began to rise very rapidly, and the year 1868 opened with dear bread, flour being quoted at from £l7 to £lB per ton. Sir Lorimer estimates the average price of flour in 1868 at £lB 2s 6d per ton, while in 1867 it did not exceed £l2 2s 6d. And, from the fact that he heard nothing of agricultural distress dunjpg the latter year, he deduces the that the average price given was«- remunerative one to the producers. As that average would be neady five shillings and sixpence per bushel for wheat, we are at a loss to see how; it could have been otherwise than remunerative. Mr Lorimer believes that dear bread is a bad thing for trade, and he proceeds to show that in 1868, owing to the inferior crop, about £510,0p0 ; was required to feed the population of Victoria in excess of the amount which would have been necessary had flour been at a reasonable rate. Had that large sum not been required to feed the population, adds Mr Lorimer, the greater portion of it would doubtless have been expended in the purchase and distribution of other commodities.

The adverse influences already enumerated exceptional to 1868, and have long since ceased to operate. The third depressing cause was, or is, what Mr Lorimer calls the “critical “ condition of the pastoral interests.” In former years, he says, the expenditure of the squatters was on an extensive scale, ami formed a considerable item in the tra,de of the colony Of late, it appears* that the progress of improvements afcon stations has been arrested and the energies of runholdera repressed by the insecurity of their tenure and tb« uncertainty of future legislation. To add to their misfortunes, ' wool has seriously declined in price. Altogether, Mr Lorimer evinces a large amount of compassion for the squatters. Ha estimates that “no siith short of £740,000 “ will ■ represent the amount in- “ volved in the decline in the “ value of wool” Except in the cases already referred to, Mr Lorimer seems to .jbe of opinion that the year he is reviewing was satisfactory. The money market was easy throughout the year, and Commercial engagements were generally, well met. Insolvencies were less numerous, qpd mostly unimportant as compashd With-those of several yeakv previous; and the financial position of the trading classes was proved to be sound.. The year’s experience, he tells us, afforded conclusive evidence that business is now conducted on prudent principles, and that substantial progress has of late years been made towards legitimate trading. It also shows a corresponding abandonment of that reckless speculation and haphazard system which so extensively prevailed during the decade succeeding the discovery of gold, which ruined so many prominent mercantile men, and lowered the commercial character of the colony. The second portion of Mr Loriraer’s address contains some valuable information hpon the present position of the, coipmerce of Victoria, as disclosed by the annual statistical returns. In dealing with- the import trade, he points out that during the eight years from 1852 to 1860, when the occupations of the people were very unsettled, the average annual value of imports was about fifteen and a half millions for an average population of 416,500, or at the rate of £37 per Prow 1861 to 1868, inclusive, the average annual value of imports has been about £13,000,000, the average population during the same period being about 610,000, This gives an average of about £l9 per head during the eight years. It is noticeable that the average for 1867 and 1868 is only a little over £l7 per head. Mr Lorimer thinks that the change in the fiscal policy of the colony —from free trade to a modified protection —has in some degree contributed to this reduction. But,evidently wishing to be just, he concludes his remarks on this branch. of the subject by saying that while on the one hand he fails to discover evidence of the social revolution the new tariff was to accomplish, or of the great prosperity which its most earnest advocates expected it to evolve, on the other hand he does not tbfok that it has produced those disastrous consequences to importers which were dreaded by many unreasoning opponents. The figures which Mr Lorimer furnishes in reference to the export trade of Victoria do not indicate a satisfactory progress. The average value of exports per head of the population, for-the last four years, was £2O 6s 7d. It was £23 17s lOd during the four years preceding. There are other portions of Mr Lorimer’s speech worthy of attention, but these we must reserve fur a future article.