TRADE AND FINANCE.

Manawatu Standard, Volume XLI, Issue 9539, 16 June 1911, Page 3

TRADE AND FINANCE.

A POLICY OF ECONOMY. AND CAUTION SUGGESTED. In addressing tho shareholders of the Bank of Now Zealand to-day Mr 11, Beauchamp (chairman of directors) said: In studying tlio facts and figures relating to tho trade and finance of New Zealand there are many conclusions to bo arrived at, and I feel constrained to say that, in view of the figures 1 shall presently quote, it would be wise on the part of tho business community, to pursuo a policy of economy and caution, Tho trado returns aro not as encouraging as ono could wish, and, although they aro hot actually dieconcorting, they point to the possibility of some little stringency in tho near future. The values of tho exports and imports for the year ended March 31st last, compared with tlio figures for the three previous years, disclose the facts that, while in 1910 there was a big expansion in exports and a contraction in imports as compared with 1909,. for tho year just closed tho growth in exports is disappointingly small. whilst tho increase in imports is exceptionally large. Tho totals (excluding specie) aro as follows: Year ended Exports;;;, Imporis ' - March 31st. £ / V £ '. 1908 ... 17,863,842. 17,466,421 vi 1909 ... 16,767.818 16.313,759' 1910 ...' 21,167.387 14,773,821 - 1911 ... 21,497.205 17,385,066 It will bo noted that while exports for 1911 show an increase of only £29,818,;im : ports have increased by £2.6i1,2-;5 Tho figures indicate a disposition to overimportation, which, if not ' checked or counterbalanced by a !■#' corresponding; growth in our exports, maylead to stringent financial conditions -in the Dominion later on. The position suggests _ to the ■ ■■'discerning , the need for caution. It .is out of the amount realised for our.'..exports thai;, wo pay for tho goods we import and also provide, for the animal interest ori the public indebtedness 'of? tho'.community to the foreign money lender.,- Tho interest charged on our debris at £3,500,000 per annum, .and does not appear excessive. In llie four years to March 31st, 1911, our imports wore; valued at £65,939,067,. and the amount, due on interest during tho same period was, approximately, £14,000,000;' New Zealand had therefore to find a sum of £79,939X67. Our exports, for the period, totalled £77,596,252—50 that we wer 0 £2,342,815. short of requirements._ The adverse position, shown by .the.! exports during tho current produce year commencing October last, is mainly due to the smaller amount ivieived from ;1k; wool clip. A smaller qiiiunily was shipped: for tho seven months..t.6. !Aprii; 30th last, tho weight of wool. exported was 152,611,3681b5., while, -for, .-the corresponding seven months of ,tho .previous season tho quantity ' was .167,468|'4471b5., revealing a shortage of 14. i 857,,0791b5'.' The; decrease in the total value is £.978,750;;. and arises in the smaller totals'of tho first four months of the present year. Tho monthly figures arc as,,follows:—■ 1910/11, .1909/10 ■ £ ' ..£: .;■ October ... 62.780 . 55,959 November ... 295,0.99 224,426 December ... 1,127,7.56' - 887.864 " ' January ... 1,665.269 1,812.679 February ... 1,181,672 1.830,656 March ... 975,926 1,203.488 April ... 480,675. 651,845 . £5,789.177 £6.767.927 For tho three months to December ■ there was an increase of £316)376.; but in Hie four months ot this year there.is a.shrinkago of £1,295,126. Dairy produce also shows a, shortage in tho first four months of this yeaf, t)ic. decrease in butter being £-79.826, and in. cheese £65,709—0r a total of £K5.535. Tlio. unfavourable weather experienced during, tho season is, of course, aoeo.unta.ble. .for this. The dairy industry, however, continues to make wonderful strides, and what has been accomplished during 'tho past four years is positively amazing. Comparing the value of flie exports of butter and cheese for the four- years ended March 31st, 1907, with i|uv four years ended March 31st, 1911, 'we obtain' the following:

4 years to 4 years io March 31, March .31, ;| 1907. ' 1911. Increase I £ £1 £ Butter ... 5.896,037 6.25.5,-991 359,954 Cheese ... 1,102,504 4,059,615 2/175,111 £998,541 £10,315,60.6 £3,317,605. The increase of £3,317,065 is nearly 50 per cent, and shows rema.r.ksblo progress. The gain, however, arises prom tlio expansion of the cheese output,, which .this season has beert the mainstay of the industry. The prosperity of the dairy farmcrs of New Zealand has been long-con-tinued, but, in the naturai..order of things, ;i set-back may reasonably be. expected.:} In this connection I am still of opinio!! • that the prices of dairy:.;hiii'd' are maintained at too high a level',;.. New' ■Zealand !, butter suffered severely from the compel i- 1 lion of the Australian product (hiring; the ; season now closing, audi tlio bad ellccfs; were increased by complaints as ;o the: quality of our product, . Keen' competition may bo expected during next season, especially from Australiaj ■ where., tho climatic conditions appear favourable for another largo output. Including Native lands', there yet a.-, considerable amount of .-raiintry ill ;tl)is Dominion to bo brought ■ ifi.tfi. profitable use. In tho northern parts of New Zea- i land there are great areas of gum lands, I hitherto regarded as worthjess;, ; but .which I arc now proving valualil.o- 'owing to tiie. fact that tlio fodder plant, I'aspalum, ■ grows freely and luxuriantly oil sutli land. With this land laid down in t'aspalum, thousands of dairy cattle could be depasfured. Wo may confidently look forward fo a continued expansion-of tlio dairy industry. The exports of frozen meat have '■increased this season, particularly because, the adverse climatic co-uiiiions forced the stock into the slaughter j'.alrds of the yii.n- | ous Freezing Coinptiiiico. jiioiit has engaged a good deal of aUention owing to various reports aG:to..t.]i;c, :iliteritions of the notorious American. Heef: Trust. So far as New Zealand is concerned, there is nothing io fear from' ihe Trust, for there is no room for it here. In point of fact, it seems to me thai so long'as fhe l'ailwavs in this Dominion by the State, it would' bo quite impossible for tho Trust to capture the meat trade. Nor does it seem likely- that, the Trust will accomplish much in Austr'alia. . .; During the past twelyo;■ ■.fniciiitlis/. ! he world-wide shortage of beef has been ae ' centuatcd, and the people; s off\eohtmijntal. Europe have demanded :'ljie'Ot)- ■ tain supplies from outside sources. I'airly large quantities of Argentine bun 'nave been marketed in Italy. Austria, .and Switzerland, and the extension; ; -ef.. the ■ market iu this ii: art ion is i'.ievila'ole, although, it is likely to be a Mow mailer. New Zealand is bound to. derive an indirect. benefit. There i, also some s'ight chance of the American tariff.on .»'wi! being lowered. If this is're'a]isecl,' .jtv;W'ill : mean that the values of certain elates ot wool favoured by the Americans will ad* vanee sharply and romaiii-.at iiVconipara-'. lively high level. Turning to the nunV'tarv .siiiir.tinn. there is no dotiiif '.lnn r.n.abundance of money is available in NeW 1 Zealand:;- 1 he scope for its employment,- however, W i restricted. Any industrial v ':;etite jpxisei. i likely to require much labohr:: istjupt.;' ! viewed as a good propcsil,iotfc> Ca'pitaliMs j are unque-tionably nervouS'. ; tude ot Labour, and t his is io. be dei piored, for il be pafenf-.fhat, iiiiles.v ! there be exhibited a spirit ot greater;h'ai;. : i mcny bef.wren Labour and Capifahfiio; 1 quickening of industrial activity can be ; looked for. I have the conviction l-h'atv; I if employers and employees exhibited ;,a. genuine desire lo work amicably together.; with a mutual regard for : the iiwt h'terests of each other, industries vvhiclc ate at present in _ a languishing condij.; tion would spring into reinvigorafed life and prosperity. This is essential iii the intercuts of the State. Whilst the figures I have placed before you emphasise, in my opinion, the heces'; sity for a policy of economy and caution, tho immediate outlook is, speaking geriiir-

i ally, by no means unsatisfactory. Although thero aro strong indications that flie produce veav will yield a smaller return tliiiii tlio previous ono, tlio difference will not be groat enough to create any real hardship. The coming year ' promises to be one of low prices for commodities. Already in the United States ' there has been a decline in values of 25 per cent,, and in England and elsewhere i,ho tendency has been downwards. It is probable, therefore, that our products will yield a smaller monetary return; but (.hero should be an appreciable expansion in tho volume of the output which should compensate for any fall in values. Trade | and commerce the world over appear to ' be good and. money is everywhere reason, ably cheap. The expenditure of flic huge sums borrowed in London, Paris and Ber- ■ lin by foreign;;. Governments, municipalities and joint stock .companies'during tho pant- twelve .or eighteen .■'months 1 must keep trade active; but above all, so far ;as New Zealand,.is : concerned, it is'.tho trade 'activity ofvtlie United' Kingdom that is of the greatest interest.' British .trade. has been expanding steadily; and ■ tlio .records .of,';unemployment Jiow that, fewer people havo been out. of. work. * So j. long ; : as British ytrado is good,' rhc '.pro-' ( (••pecf«.of New Zealand. remain bright and. i' j)i:oinisiiig.;.;.t?;"::^'-i'tH:!'.- ■ ■ ■■