THE TRADE RETURNS.

New Zealand Herald, Volume LXVII, Issue 20620, 19 July 1930, Page 10

THE TRADE RETURNS.

The recurrence of an unfavourable balance in the trade returns for the 12 months to June 30, the period normally corresponding with the season of production and shipment, is disappointing, though not unexpected, since previous returns have indicated that an adverse result was almost inevitable. The decline in the value of exports by £8,656,000 represents a heavy loss to the Dominion, and there is unfortunately reason to fear that the amount does not represent the full extent of the sudden collapse in commodity prices. According to the official statistics, almost tho whole of this reduction has occurred in the last six months, whereas it is probable that earlier shipments did not realise the values credited to them when the export valuations were made. On the other hand, the selection of a particular date for a seasonal stocktaking involves an arbitrary discrimination against any dilatory shipments, and there is special need for observing this circumstance on the present occasion, since exceptionally large quantities of all the important commodities were held in the Dominion on June .'3O. When these stocks are marketed, the actual results for the season, owing to the increase in production, will offer a more favourable comparison. liven the apparent position is very much better than the comparable situation four years ago. There was then a fall in exports of over £ll,ooo,ftoo and the adverse balance was £5,820,000, both amounts being very much greater than are now revealed, the apparent excess of imports now being £1,210,000. It should also be observed that New Zealand was probably in a stronger position when the convulsion occurred than many other countries, for the two previous seasons, in which exports amounted to £112,00(1,000, with a favourable balance of nearly £22,000,000, equipped it with large reserves against such a period of adversity as has been experienced. Nevertheless, a disturbance of such severity will have widespread reactions, and, m view ol the delay in the adjustment of importations to shrinkages in export values, merchants and traders will be constrained to supervise their purchases during the new season with scrupulous care. Prices for the staple products of the Dominion are very low, and there is no positive sign yet of a definite improvement; moreover, the principal market, Britain, is subject to disturbing influences that may not be speedily removed. In these circumstances, the need for caution is obvious; there should be equally clear recognition of the imperative need for lowering costs of production in the export industries, including all the subsidiary activities upon which they depend. Unfortunately, the Government, which should be giving the country a lead in economy and efficiency, is plunging along a course of reckless improvidence, intent only on discovering means of increasing taxation sufficiently to finance its programme of constantly increasing cxpendiI ure.