NEW ZEALAND'S PROSPERITY.

New Zealand Herald, Volume XLIV, Issue 13455, 6 April 1907, Page 5 (Supplement)

NEW ZEALAND'S PROSPERITY.

IS IT SOUND AND PERMANENT?

EXPORT VOLUMES AND VALUES.

[i KOM OIK OWN CORItKSI'ONI)KN'T. J j London, February 22. A city friend who occasionally looks me j ii]» to impress upon me his views— which ; jhe always insists are those almost- univer- 1 | sully prevalent in the city—about New . i Zealand and its people, called in a day { or two ago with the newest issue- of the' New Zealand Year-book in his hand. t " I've just been looking up your" latest j ! New Zealand statistics," he said. " I sup- I pose you still consider your colony pros- j ! perous?'' "Oh. yes; certainly." 1 "And you think the prosperity is progressive and permanent arid likely to con- I tinue so?" ' " Don't you?" | "Well, just look at this: Here's the j i new volume of statistics just out, so we'll j [see. Now, observe, the value of the wool I exported from New Zealand in 1905-6, the latest period for which the returns are j available, was £5.381,333, whereas the | | value for 1898. seven years previous, was | only £4,645, I "Well there's progress, • surely?" ' "Ah : but now turn to the quantities, , [In the year 1898, New Zealand exported! 1 150,401,95611. of .vool; in 1905 only 11.46,869,7671b, or nearly 4,000,0001b lc~s than the export ot seven years before. So: that, as a matter of fact, New Zealand's j 'export of her chief product has actually] decreased heavily during the seven years, I and the increase hi total value is due! wholly and solely to the higher prices that j Ihave happened to prevail." I " I see what you mean—well?" j "Well, look at the number of sheep in the colony. That was 20.342,727 in 1902: I jit is only 19.826,624 in 1906. Not much' progress there, is there? Or, lake the last j ten years: In 1896 New Zealand had 19.138,493 sheep : in 1905 only 19.130.875. j or actually nearly 8000 fewer. Then, if lyou take the number of frozen sheep and ' i lambs exported you will see that the j total was 4,922,622 three years ago, but! only 3,605,592 last year big falling oil'! 1 i And you must bear in mind that wool j {and mutton constitute something like 56; j per cent, of the whole exports of New ; I Zealand." [ " lint what is your deduction from all i this?" '■ " Not anything to New Zealand pre- j judice, but -i wholesome lesson as to her j !policy. You see all this boasted prosperity ;is virtually due to enhanced—l dc not say necessarily inflated—London prices. The j ! colony is producing less in quantity than she did some years ago. but the appreciation in values has made her export totals [wear a flattering appearance of increase j | which, in fact, is merely a rise in London' : prices. Now these values are always fluctuating. and any clay we may see a slump after the long boom. The fluctuations are due to causes quite outside of New Zea- I ! land's control or regulation, and often out-! {side of British influence. Thus, if for] I any reason a fall in prices should occur, 1 New Zealand's largely decreased export 1 of wool and frozen meat which, (is I have I I said, constitute some 56 per cent, ot her j ! total export trade, will mean a propor-! tionate reduction in total values. A colony |is not i(i a satisfactory position when her ; , j apparent prosperity and progress rest main-! |lv on prices on this side of the world,! which may. through accident or design, be! unduly inflated, and which are liable at j j any time to be as unduly depressed." "No doubt, but what moral do you de-j 1 Iduce?'' j "This, that far more strenuous efforts |ought to be made by the Government to increase with all possible rapidity the vol- -! ume of the New Zealand exports. The! iexcuse that the present falling off in the! I exports alike of wool and of mutton is (due to previous over-exportation will not ''wash.' because even a very cursory exlamination will show that New Zealand's! I increase ii.-is been nothing like what it : 'ought to have been in the past ten or' twelve yea is. And one reason, as I take I (it. is the failure of the Government for [one reason or another, to promote a sulli-: jciently extended settlement and cultivation I .[of the land. I hear many complaints of ■j{the difficulties that newcomers find in geti tills,' hold of land and in getting upon it.- ' and in getting it opened up. Some ofi •my New Zealand friends point to v;««tl \ areas in the Auckland province alone that - : ought to be yielding any amount of wool I and mutton and butter and cheese that! , are lying idle. Why don't the New Zea-1 land people stir up their Government and intake them mien no more land and give ' increased facilities for settlement? Re.'-01-1-: 1-: lei I fb.-il I li« time b.-ic now Keen :

' when full benefit fit' -what was done by ,! the early settlers in the way of settling and opening up land, clearing bush, culti-J . vating, etc., is- being reaped. Then con-' sider New Zealand's advantages of climate, 'soil, and a picked population, and you | ' will realise- tint the real progress of the colon is nothing like what it ought to; i lie in such favourable circumstances. New | j Zealand needs more people and more land] I in cultivation, and unless she gets both. I ) , her apparent progress, based on mere high; p prices of produce, cannot be regarded as; fi entirely sound and satisfactory. Do point! . this out and stir the people up!" "I will tell them what you say. at anvj , rate." "There are other points, hut I will only! mention one: Look at the railway re turns. Seven years a-ro the New Zealand railways paid £3 'Is lod per cm;. interest' on their erst : last year £3 4s 9d. Twoyears ago the return was £3 lis Bd. This •is surely not ' progressV* What is the i l' reason'.' Well. 1 suspect That if can be i found in the percentage of working ex-1 ' i penses column. In the year 1896-7 tiie i j working expenses absorbed oiilv 61 peri cent, of the receipts; in 1905-6 the ex-; . penses a'e up 69 per cent, of the gross: revenue. That is a very big difference—; I i more than 12 per cent, to the liad in t ten years. Whether it- be due to inflation [ jof wage rates or what I don't pretend to; . i sav, but there is the result in black and . white official figures." | J "Suppose we ask Sir Joseph Ward when , he arrives next- month?" Very good idea. We will