Manawatu Evening Standard. MONDAY, DEC. 7, 1936. RECORD CUSTOMS REVENUE.

Manawatu Standard, Volume LVII, Issue 7, 7 December 1936, Page 6

Manawatu Evening Standard. MONDAY, DEC. 7, 1936. RECORD CUSTOMS REVENUE.

Reports from all centres go to show that the Customs revenue for the eleven months to the end of November records an abnormal increase, and while this is very pleasing in some respects, it is just, as well to probe into the matter and try to appreciate the reasons for the remarkable increase. It -may be said that, if there had not been an increase it would have justified the belief that there was something wrong with the body politic. It must be kept in mind that Government expenditure is on a large scale. It started last Christmas when a bonus of i!IOO,(JUU was distributed to unemployed. The legislation of the last session provided for a much higher expenditure in various directions. There is the .pay-out on public works; more men have been taken into the Government service, the staff's of many of the Government departments having had to be increased to comply with the 40-hour work week. Outside the Government services wages have been raised, and in not a few cases industries have had to employ more hands. Einally the note circulation, as shown by the returns of the Reserve Bank, is now greater than it has been previously.

There is an abundance of money, and many who are now receiving full and higher wages than previously are spending very ireely, while those who have been unemployed for some time and are now earning find that they have so much leeway to make up that they must spend to the limit of their earnings. There is another section of the community—the saving class—who are now spending very freely, and those who sell luxury products must know this to be correct. Thus for various reasons there is an orgy of spending, and as the State takes toll of every pound note spent, there is nothing remarkable in the revenue increase.

But not every one will be pleased to see the Customs revenue increase. The manufacturers in the Dominion cannot look upon it with equanimity. Apart from excise and betr duty, which in the aggregate contribute a relatively small amount ot the total, the revenue is derived from the duties on imported goods, and if there is an increase fn the Customs' revenue it must be because more goods are beingimported. A great many of these imported goods must come iitto competition with local manufactures. That it pays to import goods with the tariff plus the high exchange is rather significant, in this way, that it

shows that imported goods notwithstanding the exchange and tariff barriers can compete successfully against local manufactures; or to state the case in another way, prices of domestic goods are higher than imported goods, because their costs are higher. The trend will be for an increase in imports and of Customs revenue.