FOSTERING TRADE.

New Zealand Herald, Volume LXVII, Issue 20561, 12 May 1930, Page 7

FOSTERING TRADE.

WORK OF COMMISSIONERS. FULL INFORMATION SERVICE. CO-OPERATION WITH MERCHAI^TS Tho manner in which New Zealand's trade commissioners and importers and exporters can co-operate in fostering the Dominion's overseas trade is set out in a circular issued by the Department of Industries and Commerce, under tho authority of the Minister in charge, Hon. J. B. Donald. Commissioners have recently been appointed in Canada and Australia, and from" them exporters, both of primary products and manufactured goods, will be able to receive up-to-date information concerning the present and prospective demand for their goods, foreign and local competition, details of best selling methods, confidential reports of tho statu.; of buyers and specifications of products in particular demand. The trade commissioners will also recommend to intending exporters the names of responsible parties in a position to act as agents, buyers and distributors, and advice will be given to New Zealand producers and manufacturers as to (he best, forms of publicity to be followed. Particulars will also bo given concerning terms of payment which may bo arranged with overseas buyers. An important part of (be work of the commissioners will be to introduce visitors from New Zealand to possible buyers and agents and to settle disputes which may arise between New Zealand exporters and buyers abroad. Information will be provided as to freight rates, port dues, Customs duties and requirements, so as to enable New Zealand firms to quote prices for delivery overseas. Meagre information furnished by the exporter concerning his products is regarded as a serious handicap to the trade commissioner in his efforts to market tho exports, A general statement of tho facts about the exporter, his bank references.

whether he is already engaged in overseas trado, and for what period and to what extent, are some of the essentials that are required by the commissioner. Tho commissioner also requires general data about the commodity which tlie exporter wishes to sell in that particular market, noting any special advantages pertaining to the lino offered, particularly as compared with well-known articles of tho same type from other countries. He wants to know exactly what the producer or exporter is himself willing to do to place his goods in tho new field*? the basis on which sales would be made to tho importer, or 011 which - goods could be offered for sale by a recognised agent,, and tho commission that would be paid the latter; what would be required of an importing house or agent in order to obtain the agency for the lino; whether the producer or would send consignment stock or samples, and in what quantity; whether ho is prepared to advertise or co-operale in advertising, and to what extent; the facilities possessed by tho manufacturer or producer for export shipment, and - the kind of supervision that is exercised by him over the packing of goods destined for a distant market. ■ CENTRAL RESERVE BANK. AUSTRALIAN PROPOSAL. HEADQUARTERS IN SYDNEY. Tho propositi of tho Australian Government to establish a central reservd bank was explained by tho treasurer, Mr. E. , G. Theodore, in moving tho second read- | ing of tho bill in the House of Represen- ! tatives last week. In tho course of his • speech ha said the Commonwealth Bank i had attempted to assume the functions of j a central reserve bank, but it had never ! been successful in evolving those functions, and it cannot be regarded as a central reserve bank to-day. The principal obstacle had been the attitude of the private trading' banks. Th'jy doclined to ' deposit a considerable amount of their reserves witli the Commonwealth Bank, realising, as they did, that those reserves might be used to further competition against themselves. "We do not desire I to encompass the destruction of the Commonwealth Bank," said Mr. Theodore, " and I do not think any person wants to see it abolished or retired irom the competitive field, but we must recognise 1 the rights of the trading banks. Therefore, tho central bank must be an institution apart from tho Commonwealth Bank." Jv'i-. Theodore continued that the practice of Australian banks was to keep from 36 to 18 per cent, /of their deposits against liabilities. In the aggregate those reserves amounted to a large sum. Under the central reserve system a considerable amount of those reserves could be utilised without impairing the safaty or security of the banking investment:i, or of the depositors with tho banks. It was estimated that if the trading banks deposited 10 per cent;, of their current accounts and 5 per cent, of their fixed deposits, the Central Reserve Bank, at the outset, i would havo a minimum reserve of £20.000,000. It was believed that from £16.000,000 to £Ifi.OOO,OOO would bo represented by depo-sits from the trading banks, and from £2,000,000 to £4,000,000 by the current accounts of Governments doing business with the central bank. There was provision also for tho transfer of £2,000,000 from the ' Commonwealth Bnnk to tho Central Reserve Bank as the initial capital. ■ Mr. Hughes: Will the Reserve Bank ; consider that as a loan'! ! Mr. Theodore: That will be an absolute transfer from profits, and it will bo justified because profits havo been made from central reserve functions. No one can cavil at the transfer. He added that tho headquarters will bo in Sydney, and will bo housed in portion of tho Common wealth Bank buildings in Sydney. j Mr. Theodore explained that it was not proposed to accept deposits bearing interest, except from ono or two ,'imitcd classes of depositors. There wero certain firms that would become recognised as operators in a particular field, and the trade mark and test of recognition nf those firms would bo that they were depositors with tlie Central Reserve Bank. No doubt the bank would require to held substantial deposits before they could operate. CANADIAN TRADE. WEST INDIES AGREEMENT. (Received May 11, 5.5 p.m.) VANCOUVER, May 10. A message from Kingston, Jamaica, says tho authorities have served a notice on tho Canadian Government under the Cauada and West Indies trado agreement, that Canadian products imported into Jamaica after September 30 will benefit by tlie preferential tariff only if conveyed direct from Canadian ports. A large quantity now comes via tho United States or is transhipped.