TRADE DURING THE PAST YEAR

Nelson Evening Mail, Volume LXIV, 29 December 1930, Page 8

TRADE DURING THE PAST YEAR

LOW PRICE LEVELS SPENDING POWER OF THE COUNTRY REDUCED Tho business world, doubt less,* will see the year 1930 go without regret (says the Christchurch “Times”). It was not a good year. Troubles that had been growing during the previous year became more pronounced, and business conditions generally were very difficult. The great of course, was tho surprisingly low price level for the Dominion’s exports. Tiie calendar vein- is not a very satisfactory basis for comparing trade figures, and especially the figures relating to overseas trade, because it takes ill part of two producing seasons. Towards the close of last season, prices were down, and they have been at a very low level this year. This makes the calendar year a very poor one by comparison with other years, and possibly paints the picture a little {flacker than tho circumstances actually Avarrant. Hopes of an improvement centre, of course, on a better demand overseas for the Dominion’s primary products. FALL IN TRICES The effect of the fall in the value of primary products is shown in the export figures. In tho case of wool, the difference is rather startling. The figures for the past two years have been:— £ 1929 15,923,127 1930 8,156,309

Of course, the great fall in the value of the wool exported in 1930 was duo in part to tho fact that in the year just past nearly 135,000 fewer bales were shipped than in the preceding year. Despite the low prices ruling, farmers are meeting the market, and if that policy be continued it means that there will be only a very limited carryover for next season.

Dairy production during the past year will probably show a marked increase, more pronounced, of course, in quantity than in value because of the lower prices ruling. For the first ten months of the past year; tho exports of butter showed an increase of nearly 285,000 cwt, though the increase in tlic money value was only £55,000. Had the prices of dairy produce remained on a par with those ruling in the preceding year, the increased monetary return would have been very considerable. The export of cheese during Uio first ten months of 1930 was practically the same in volume' as that of 1929, but the lower prices ruling resulted in a drop in value of no less than £415,000.

The latest figures available regarding the export of lamb and mutton show increases in quantity for both sufficient to lift the monetary return by £218,000 in tho case of lamb and £485,000 in the case of mutton.

LIMITED IMPORTS

Imports into the Dominion have been limited by the monetary conditions prevailing. The high exchange rates have had their effect on imports, as also have the increased interest rates charged by the banks for accommodation. The restrictions thus imposed on overseas purchases are still having their effect, and will probably soon attain their maximum. The latest figures, covering the first ten months of the past year, show a drop in imports of about £3,750,000 as compared with the corresponding period of the preceding year. A marked drop lias been recorded in the case of imports from Canaria. Trade with Canada wap seriously interrupted during tho year'. The Dominion lias, in recent years, built up a very promising trade in butter with the northern dominion. The new Government of • Canada, immediately on assuming office, increased the duty on butter materially, and this despite the fact that the balance of trade between,the two countries lias been very heavily in favour of Canada. The New Zealand Government replied by placing Canadian motor vehicles on the general tariff, and this has been largely responsible for a drop of approximately £1,600,000 in the first ten months of 1930 in the value of motor imports. - On only one occasion since 1924 lias the level of imports for the first ten months of the year been lower than in 1930, showing that there has been a marked contraction of overseas purchases. Trade between Australia and New Zealand lias been steadily declining of recent years, and the trend has been noticeable during 1930., In tho first ten months of 1930 our exports to Australia showed a decline of over £600,000 when compared with the coresponding period of 1929, but our imports from Australia showed an increase of about £230,000. The decline in our export made with Australia is due to the steps taken to exclude New Zealand produce from the Australian market.

INTERNAL TRADE The lower prices received for our primary produce, entailing a very serious reduction in the Dominion’s spending power, have, of course, had a very marked effect on internal trade, and practically no class of business has escaped the effects. A bright side of the picture has been, however, that the unremitting advocacy of the individual consumer giving a preference, wherever a choice is presented for goods made within the Dominion, has had some effect in inducing people to use their spending power in such a way as to benefit the industries of New Zealand. It is becoming more widely recognised that industrial development would affoul scope for greatly increased employment, and would provide occupations not only for those who are now unemployed, but would greatly widen tho field of choice for boys leaving school. Not only has much attention been paid during the year to fostering a preference for New Zealand goods, but a great deal has also been done in the direction of improving tho' demand for British as against foreign manufactures. One notable example of this movement during 1930 was the bolding of the all-British Motor Olympia. This exhibition of British motor cars attracted a great deal of public attention, and will doubtless react beneficially to>. Uio branch of industry affected. The experiences of tho year have shown clearly that the business section of the community is now deeply interested in the economic factors that affect the money and trade markets. This lias lieon attributed largely to tho educational work done by the Chamber of Commerce in conjunction with the Economics 'Department of Canterbury College.