IMPROVEMENT IN TRADE.

New Zealand Herald, Volume LXVIII, Issue 20988, 26 September 1931, Page 10

IMPROVEMENT IN TRADE.

HOPEFUL ENGLISH SIGNS.

EFFECT ON DOMINION.

EXPORT BUSINESS PROSPECTS,

KEEN INTEREST IN CABINET.

[by telegraph.—special reporter.] "WELLINGTON, Friday.

A hint from England that the -financial developments there have opened wider the door for New Zealand produce giving this Dominion the opportunity to strengthen' its /hold on the British consuming public, has arOused keen interest in the Coalition Cabinet, the members of which are devoting a great deal of time just now to the problem of the primary

producer. / s The Prime Minister, the Rt. Hon. G. W. Forbes, said this evening there had been an apparent improvement in New Zealand's prospects at Home, although more would have to bo known before it was decided that a definite trade revival had begun at Home. Messages from England indicated there had been a revival of confidence among the business community, and, from the Dominion's viewpoint, this was a good thing. It was fully realised that any improvement in England would react favourably upon the Dominion, whose prosperity was in- , timately bound up with that of the Old Country. It was for that reason that the developments in London would be rratched with the closest attention in Now Zealand. f Basis of Prosperity. ."Mr. Forbes recalled his statements made jwhen he was attending the Imperial Conference, whero he had said, as far as the Dominion was concerned, it was not much / good England talking of protection unless she also concentrated upon a return to ' prosperity. The State of New Zealand s export trade depended entirely upon tho couditions at Home and it was not much good having tho advantago of a protective tariff if the purchasing power of tho people in Britain was not sufficient to warrant the Dominion's exports to that country. Tho' Minister of Agriculture, the Hon. D Jones, who, is also chairman of the New Zealand Meat Board, foresees that the Dominion's exports of meat and dairy produce to England will increase steadily for some years to come with proportion- . ate benefit to the market in England for Empire goods. . . "Lambing throughout the Dominion so far has been good and promises to ensure an increase in lamb exports for next seafon," said Mr. Jones. "There are many people who believe New Zealand has reached the maximum of production, but with this I disagree, because there are large areas of land that are as yet indifferently farmed and capable, under good management, of increasing in output. Increase in Volume. 1: "This is, perhaps, more so with dairy produce than with meat. r i he butter-fat per cow is increasing year by year, and this in itself means a very substantial rise iry the volume of produce from the same arpa of land. With better farming methods and better stock our o tit nut can be materially increased, and I believe we are moving*...irf this direction. There i 3 no reason to doubt that our exports will continue to grbw steadily in volume for many years to come, and this will assuredly strengthen our position on the English market." The Hon. A. Hamilton, who is well versed in the problems of the primary producer, said the depreciation of the pound sterling in Great Britain through the removal from the gold standard had certainly made the outlook brighter in New Zealand as far as the primary producer was concerned and, after all, the ■whole country depended on the prosperity of the men on the land. There was a possibility that the currency of Britain might alter to such an extent that New / Zealand would be - deprived of any benefit. However, thp position was certainly very much brighter and he was hopeful that the improved conditions would continue. The alteration would have an adverse effect in Britain, as far as paying interest debts to other countries was concerned, and that might lead to the Homeland raising a tariff wall to protect British manufacturers against foreign competition. If that were done it would benefit the Dominions.