DOMINION TRADE

Manawatu Standard, Volume LIV, Issue 307, 24 November 1934, Page 8

DOMINION TRADE

THE ECONOMIC OUTLOOK. “While it is rash to attempt to forecast the future, especially with conditions throughout the world so unsettled, I am optimistic enough, as far as New Zealand is concerned, to state that prospects are improving, and while the problem of quotas is exercising the minds of all our primary producers I believe that, provided we aim at quality rather than quantity, we will steadily improve our position,” declared Mr T. Currie, chairman of directors, at the annual meeting of the New Zealand Farmers’ Co-op. Distributing Coy., Ltd., at Feilding yesterday, when referring to trade prospects of the Dominion.

“Much, of course, depends on the decision of the British Government with respect to preferential treatment for the Dominions,” Mr Currie went on, “but, New Zealand having recognised her obligations in her new customs tariff, it is reasonable to assume that the Motherland will continue to recognise the vital importance of encouraging inter-Empire trade *and grant us preferential treatment on her markets. “The Mortgagors’ Relief Commission, the statutory reduction in interest rates and rent, and the raising of the exchange rate on London have all had a beneficial effect, and the likelihood of still lower interest rates for some time to come will further reduce overhead costs. Farmers are urged to take advantage of the present position and rearrange their mortgages with a sinking fund of 1 per cent.; that is, adopt the principle of amortised loans and evade the expense of constantly rearranging their finances, besides steadily consolidating their position. “We realise very keenly the hard and anxious times being experienced by our shareholders and farmer customers, and offer our experience and service in an endeavour to lighten their burden. We know our primary producers realise that prudence and hard work as practised by our pioneer settlers must dominate all farming activities to bring about the success desired, and we sincerely trust that their efforts will be rewarded with a bountiful season and a realisation of prices for their products, which will at least show some margin over the cost of production. “The following figures as at September 30, give the comparative total exports and imports of the Dominion for the past three years: Surplus or Excess

“Definite signs of returning confidence are evidenced by the fact that the import figures are at last showing an improvement and it is to be hoped that the Government will shortly be in a position to give some further relief from the present heavy taxation burden and thus encourage greater trade activities. “That some relief in taxation is needed will be evident when it is realised that for the year ended March, 1934, the general Government taxation amounted to £21,470,827, or £l3 18s 7d per head of the population, including Maoris, added to 'which the taxation by local governing bodies amounted to over £5,500,000 —truly a staggering burden for this country to carry. “The banking figures, disclose a steady rise in the excess of deposits over advances, from January, 1933, to‘August last, when peak figures were recorded, the excess of deposits amounting to over £24,000,000, while the excess at September 30 was practically £23,000,000. Interest rates have fallen and, it would appear, will continue to do so, thus forcing money into trade channels to the benefit of the whole community. “The Mother Country still continues to be our best customer and our dependence on her markets is brought home to us when we realise that the United Kingdom took practically 66 per cent, of our total lvool, 98 per cent, of our dairy produce and 99.7 per cent, of our meat. We can and should reciprocate by buying British goods, thus encouraging a revival of trade conditions at Home, to the benefit of our own produce.”

Exports. Imports. £ o£ Exports. £ 1934 . .. 49,340,079 28,975,000 20,365,079 1933 ... 40,266,889 21,508,487 18,758,402 1932 . .. 35,068,538 22,726,661 12,341,877