Nelson Evening Mail MONDAY, APRIL 10, 1922 FAVOURABLE TRADE BALANCE

Nelson Evening Mail, Volume LVI, 10 April 1922, Page 4

Nelson Evening Mail MONDAY, APRIL 10, 1922 FAVOURABLE TRADE BALANCE

FOR eleven years prior to 1920 tho Dominion enjoyed an unbroken run of excess of exports. In 1920. imports expanded to such a degree that they exceeded tho exports in valuo to tho extent of over £15,000,000. Hard times naturally followed. Now, however, economy is telling its tale, and trade balances are now more satisfactory. A comparison of imports and exports for the past few months shows an excess of exports of £4,536,088. For the past two months the excess has been £4,208,901. The improved values in wool arc helping to restore norma! conditions, but values Jiavo declined in others. The following figures will be read with interest;—

1922 •fmuuv .... 5,020,145 ... 4,253,278 nSw A®- 694 - 4 ' 962 - 462 The theory of trade balances is no

doubt well understood, but- it is interesting to recall (he, main fads. The Otago Daily Times gives a very concise explanation, on the following lines. New Zealand has a large external indebtedness, most of which was incurred to enable (be country to discharge its war obligations, and has in consequence to make heavy annual payments in interest. Those, payments being made in the form of goods, it is necessary that the exports from the Dominion in the year should exceed the, imports by an amount at least equal to the tot til of the interest payments in order that the finance of the country may bo, maintained on a satisfactory footing. If tho ratio of exports to imports for the first two months of the present year were maintained, the complete year would show a afvourablo trade balance of over twenty million pounds. Such a result as that is, perhaps, more, than avc can expect when the prices of commodities arc so uncertain as they are at the present lime. An expansion in (he volume of exports would safeguard tho Dominion against the risk of Hud nations in prices that might play havoc with any calculations based on (ho trade returns for tho past few months. In the event, no doubt, of European affairs being satisfactorily sol tied in the near future, the values of the Dominion',s exports should be stabilised and remain at a profitable level, with consequences that would react advantageously to the people as a whole. The outlook is, however, still doubtful, and, in these circumstances, the obligation remains on the State and on the individual within the State to observe tho practice of economy, by which we mean simply that private and public, expenditure on non-essentials must be rigorously discouraged. It must he realised that the extravagances of the past cannot be repeated without moral and financial danger. and that, both as a community and as units in the community, it behoves the people of New Zealand—who in this respect are like the people of other countries—to watch their expenditure very closely, to the end that they may pass unscathed through (he fires of adversity. Those who know New Zealand best have always Lad most faith in its powers of recuperation, and the satisfactory improvement in the trade figures confirms the soundness of their judgment, and furnishes a guarantee, that under ordinarily favourable conditions the Dominion will recover speedily from the shock consequent upon the financial dislocation of tho world.

1920. February .... Imports. .. 2,983,303 Exports. ... 2,748,603 March .. 3.862,221 ... 4,321,206 April .. <1,268,404 . 3,590.015 May .. 4,902,668 ... 4,368,155 June .. 5,236,541 ... 3,443,914 Julv .. 5,143,698 ... 4,269,826 September .. August .. 7.669,326 .. 6,167,946 4,097,749 ... 3,993,120 October .. 6,386,252 ... 3,905,908 November ... .. 5,991,703 ... 3,393,945 December ... .. 6,088,229 ... 3,956,526 1921. ... 5,339,392 .. 6,664,574 February ... .. 4,329,263 3,291,160 March .. 4,664,660 ... 4,545,649 April May .. 5,337,700 .. 3.747,039 6,068,164 3,942,591 .. 3,447,626 ... 3,997,538 July August September . October November ... December ... „ 1,856,252 .. 2,623,587 .. 2,752,169 . 2,488,6612 . 2,036,117 .. 5,014,789 ... 4,959,334 ... 2,524,905 ... 1,786,226 . 2,206,289 ... 2,853,814 . 3,325,079