GENERAL TRADE.

Manawatu Standard, Volume XLI, Issue 9811, 12 June 1914, Page 3

GENERAL TRADE.

NEW EXPORTS.* The above BtfDjeotJr were deal! with exhaustively tho .chairman of directors (Mr H. BcauchamjO at roe annual meeting of shareholders of WO Bank of "New Zealand to-day. After giving'«.»« his opinion that the boonV in. trawe appeared to have ended, Mr BeauchampspKl:—There is evidence furnished by-nearly every commercial centre in the world that trade is lees active than it was. 90109 incline to the view that a period of depression ig setting in. Last year was a record year for British trade, the combined imports and exports amounting to the cploesajium 0f£1,404,151,000. Eight years ago, yu., in 19Q&, the aggregate was only £a,o6£sos i pQO. The increase to last year's figures represents a growth of 51.40 per cent during the period. Most, if not all, of the leading countries in the world enjoyed extreme prosperity throughout 1913. That condition however, appears to exist no longer. There are, moreover, at tho moment quite a number of "lamo ducks.'' The Balkan States and Turkey are suffering from the effects of the recent war; Mexico is, at .1 have already observed* the victim of anarchy; and China has been in financial straits for some considerable time. Brazil is also in a had way, owing mainly to the collapse of the rubber market, Tho purchasing powers..of the peoples in these countries are, as a result, _very much restricted, and trade suffers in consequence. New Zealand Trade.—So far as this Dominion is concerned, trade is satisfactory. Our exports for the year ended 31et March laet. attained « record level. A comparison of the values of the principal products exported during the past two years shows as under: —

£22,049.650 £21,128,086 The past year shows ,«n increase of t £920.964, or 4.3 per cent., ae compared- with 1912-13, which war exhibited an increase of over £3,500,000 as compared with 1911-12. The increases for the past year are derived mainly from dairy produce and frozen meat. Wool.—For tht- year, there is a shrinkage in the value of the wool exported amounting to £481.882, and the quantity is also less, the total being 182,854,0961b5, againet 195,782,543 lbs. Here again it is well to bear in mind that the recent strike dislocated trade, and, furthermore, wet weather delayed shearing. On the larger number of •beep in the Dominion iaet yoar, as compared with the previous year, it is reasonable to expect a bigger clip, and when the produce yesr closes, this deficiency will have been more than recovered. The wool market is in a very healthy oondition, prices are high, end tho demand is active. Australasia hen not as yrt felt much benefit from tho free admission of raw wool into the United States. because the American manufacturers have been obliged to adjust their affairs to sui< the changed conditions. No doubt. American competition will presently make itself fslt in this market. (

Frozen Meat.—For tho year ended 31st March last there wai a very substantial rxpension in the exports of frozen meat, especially in mutton and lamb. Compared with the previous vear. the increases were «» follows: Lamb £723,602, mutton £371,926. beef £122,238; total £1.217.766. I om inclined to think that the increase in mutton and lamb ia exceptional, and that. next year will show a fall. Statistics setm to support this expectation, as a consideration of the figures .of the past few years will show. Thus:— ,

Thus, for 1911. the exports totalled 5,947,704 carcases, while the sheep return* fcr 1910 showed that our flocks numbered There was a shrinkage in the ox jK>rta in the following year, for the sheep returns were smaller. In 1913 and 1914 th«re are increae** in exports; and for the past year tho total is large, while tb;> number of sheep last vcar, though larger than in 1912. is lc3B than the figures for 1910. It appears, therefore, that there has been this year an excessive <>xport of mutton aid lamb. Accordingly it it probable that the sheep returns will disclose a shrinkage in the flocks. If this be correct, a drop may bo expected in the volume of next year's < xI>orts. The flocks of the Dominion are practically stationery. Any increase is quickly sent to tho freezer. A great deal of perturbation has been occasioned by the persistent, rumours that the American Beef Trust has secured a footing in this Dominion, ft is woll-known that two powerful American firms, associated with the recently dissoWed organisation known as the National Packing Company, have been operating in New Zealand. These corporations command immense financial resources, and while they confine themselves to buying meat for export in the usual way, their advent in tho Dominion will not occasion us any eoncprn. Should they seek to extend their operations and to secure a monopoly of the meat trade here, there is no doubt the New Zealand Government would take the matter in hand, and. if necessary, oglislato to prerent a repetition, in this Dominion. of the tactics which the combination is understood to have pursued elsewhere. The matter may be left with confidence in the hands of the Government, who, ther« is reason to think, are keeping a watchful eye on the movements of the companies' representatives. Dairy Produce.—The exports of bfitter and cheese, the latter particularly, show a rery gratifying expansion. The quantities exported during each of the past seven years compare as under:

The exports of cheese have more than doubled in 6ve years, and there is a satisfactory increase in butter. The'production of cheese haa been stimulated by the excellent prices ruling. Tho defect of last season's shipments is said to have been that too much moisture had been left in it. Thin is a blemish which manufacturer* can easily remove. The limit of expansion in the dairy industry is not in sight, and while prices remain good, growth will bo certain. The opening of the Panama Canal, the reduction in the American tariff, and tho revision of the American currency laws, will oombine to encourage trade between Australasia and the United States. There will be many difficulties to be faced in pioneering the experts of New Zealand butter, cheese, and frozen meat *to America, but these will disappear as our products become better known. Growth in the trade is obviously anticipated, as larger and swifter ▼e*eb ire to be placed shortly on both the Vancouver and Ban Francisco routes. A direct service has also been established between 'Australia and New York via Cape Horn. Apropos of our extending market*. I would say that it is to be hoped that shippers /will be punctilious as regards the character of the produce sent forward, and that the Government inspectors and graders will be rigorous in their requirements, no that, the New Zealand output may be maintained at a high standard, thus earnin? a popularity that may be well deserv- , ed. ana securing a consequent command of a ready and remunerative market. It. is in this way alone thai a satisfactory and permanent trade can be developed. The importance of this question, from the standpoint of the producer, is very i forcibly borne in upon us when we review i the values to which tha pastoral and arable lurid* of #• Dominion have now

attained. . ' I have been engaged fn an endeavour to ( arrive at the extent of the appreciation 1 which has taken place in values during the last twenty years, and have been ganerous- j ly assisted in my effort by trustworthy an- ' thorities in different parts of tho Dominion, for whose aid I have to acknowledge my indebtedness. The subject is one into which so many considerations enter that it is impracticable ' to arrive at a uniform generalisation; 1/tit j the figures that have been furnished to mi- ; indicate that, as a rule, after allowing for variations necessary incidental to local conditions, the increment in land values during the last twenty years has been generally greater than lias been justified by the '! higher returns obtained in later years as • the result of improved markets, better methods of working, etc., etc. For example: Take the dairying industry, which was in its infancy in 1894, we ' find that land in favoured districts, which j i» 1894 could have been bought at from £5 to £ls per acre, is now selling at from £2O to £75 per acre, an increase of say 400 per cent. The gross yield per acre has. however, not increased in a corresponding ratio, being only about 130 per cent more to-day than it was then.

Land hunger and competition are forcing values up to a point' which leaves no margin for any material increase in cost of production or decrease in <a!e price of th© product, and as the cost of production does not seem likely to diminish, but rather to increase, no effort should be spared to maintain the excellence of the product, so that a drop in prices may not occur as a result of deterioration in quality. The increment in the value of sheep lands has, generally speaking, not been so heavy proportionately as that of dairy land. Roughly, the value of Mich land has about doubled during the twenty years, but the better average prices ruling now. and the improved prospects of the wool industry, quite justify the increase; nnd sheepfarmers. working under normal conditions, have earned in recent years a better return on their invested capital than they were obtaining a. decade or more ago. With a view to arriving at an approximate idea of the extent of the ajrrregate appreciation in value that has taken place in the country lands of the Dominion. I have taken out the capital valuations of countv lands at 1891. 1904. and 1913. They show the following comparisons: 1891,-North Island £39.256.813. South Island £87.239,699. total £218.282.038: in--1904.-Xorth Island £66.968.046. South Island £54.998,106. total £121.966.152: increase 42.12 per cent. 1913,-North Island £131.042.439. South Island £87.329,599. total £218.232.038: increaso 78.96 per cent. The jester part of the growth has. it will be observcdAtaken place inthoNor'h Jo* TJw appreciation there between IS9I and 1904 was equal to 70.58 per cent and brtween 1904 and 1913. to 95.67 per wit. In the South Island, the increase at the two periods was 1811 per cent and 58.62 per cent resncctivolv. The percental of increase for both Island* combined, i: as mentioned. 42.12 between 1891 nnd 1904 and 78.96 between 1904 and 1913. The ee.tu.il values of the countv lands in the North and South Islands combined are as I have quot<>d:-In 1891 £85.818.157' 1904. £121.966.152. 1913 £218.282.058. Ineludinp boroughs and town districts the Koi"™£~ In 1891 £122.225.029.' 1901 £182,796.241, 1913 £340.559.728. Much of the increase is due to actual outlay on im-provements-clearing, sowing. fencing building ctc.-but the major portion i* increase, brought about, by settlement, ami the hj! yield resulting from improved me.hoda of working and letter priors C.lcnrly the vnlues of land-da»'rv;ng lrnd eeneciall.T-f.re adjusting themselves at such a.level a* leaves no room for the "slii.shod farmer. If the industr? i* to continue payable, with land at siich l.. ff |i values, scientific principles must be followed and the most approve) methods adopted m order that the very best, returns or] t!>e labour and capitjl emplovcd may be realised. / J

1913-14 1912-13 £ £ Butter 2.140,019 2.056,615 Choose 2.195.273 1.859.179 Beef 446.816 324,578 Mutton (carca»t») ... 1,872,654 1,500,728 Mutton. legs and pieces) 32.848 43,522 Lamb 2.548,944 1,825,342 Wheat , ... 11,806 95,414 Oato 18.858 468.880 Potatoes 7.016 150.601 Hemp 673.835 483.355 Poultry, rabbit*, «tc. 77.967 50.851 Tow 60,828 41.005 Kauri gum 574.285 430.200 Hops 26.430 20.698 Grain and puis* 80,737 162,872 Hide* 288.631 234,735 Skins 925,565 860.782 Tallow 701,085 672.845 Timber 319.652 475,320 Wool 7,584,063 8,065,945 Gold ... 1,462,338 1,305,217

Year ended Exported Total number 31ft March. carcase*. of sheep 1909 » 23,480,707 1910 .'.' 5,044.171 24.269.620 1911 .. 5.947.704 23,996.126 1912 .. 4,697.398 23,750.153 1913 .. 5,106,199 24,191,810 1914 . 6.376.615 —

Year ended Butter Cheese, 31 March. cwt. cwt. 1908 ... 271,323 282.673 1S09 ... 275,956 310.085 1910 ... 321.975 441.884 1911 ... 367.849 456,371 1912 ... 327.282 463.610 1913 ... 369,133 634,173 1914 ... 395,169 742,371