DOMINION'S OBSTACLES.

New Zealand Herald, Volume LXIX, Issue 21201, 6 June 1932, Page 5

DOMINION'S OBSTACLES.

LONDON PAPER'S REVIEW.

EXPORTS WELL MAINTAINED. liberal banking policy. The obstacles which New Zealand has had to face owing to the heavy decline in tho prices of the Dominion's chief export commodities, and the measures taken to meet the emergency, are the subject of a review in the special banking supplement of tho Financial Times, London. Tho serious difficulties of 1931, it is pointed out, were increased by the disastrous earthquake, in a great part destroying two towns, and by an adverse' rale of exchange. The article continues: —"It must bo acknowledged that determined efforts were made to effect tho necessary adjustments in the Budget and in the overseas trade balance. Salaries and wages woro reduced and rcvenuo was augmented by fresh taxation and increased import duties. Production not only was maintained on tho high standard reached in late years, but was increased to some extent, while endeavours were made to expand tho overseas markets of the country's products, especially in Great Britain.

"How far these efforts were fruitful is demonstrated by the considerable improvement in tho export surplus:— FOREIGN TRADE. (In millions £) ] 020. lain. inn I. Imports 45.7 4:3.0 21.8 Exports . . 55.5 44.0 35.1 Surplus .. C.B 1.0 30.3 "The largo reduction in the value of exports is duo chiefly to the lower juices, their volume having been fully equal in most instances to tho previous year's lovcl." The values of the principle exports for tho last thrco years woro as follows :—•

(In millions £) 19-20. 1930. 1031. Jiu). to Nov. Wool v. .. J5.4 7.7 5.2 Butter .. 13.2 11.0 0.2 Frozen Meat . 0.2 10.fi 8..'! Cheeso . . . . 7.0 0.4 3.0 Commenting upon the banking policy, the review states:—"After having rapidly risen from 4 5-8 to 9' 5-8 per cent, early in the year the premium on the English pound remained unchanged on tho enhanced level during tho subsequent months. In their endeavours to support their clients the New Zealand banks had to adopt a liberal policy as regards lending, in spito of the continuous decline in their deposits. As regards tho deposits, a marked increase has taken place in the interest-bearing fixed deposits, while tho interest-free deposits h'ave undergone a considerable diminution, greatly to the detriment of the earning capacity of the banks, which, moreover, had to shoulder higher taxes. "Thanks to an improvement in the wool market and to the expectation of a better trade in dairy produce with tho United Kingdom, after tho adoption of tho new tariff, the outlook for 1932 is regarded with greater optimism."

FROZEN LIQUID EGGS.

OPPORTUNITY FOR DOMINIONS BRITAIN'S PURCHASES IN CHINA.

The view that British and Dominions producers should co-operate in the building up of n trade in frozen liquid eggs to supply the Home market is expressed by Mr. J. B. Merrett, a New Zealander, in an article in the Poultry World, London. Force is given to the practicability of Mr. Merrett's suggestion by the fact that the first large consignment of Australian frozen liquid eggs was successfully shipped to London by tho P. and O. liner Strathnaver last January. Frozen liquid eggs are now used by bakers and manufacturers in all parts of the world. Eggs that are cracked, stained or below grading standard as to size are broken and mixed in bulk and then frozen, being shipped and thawed out when required for use. Large quantifies of eggs in shell are already shipped from the Dominions to Britain, but there still remains a profitable outlet for the frozen liquid article.

That this trade should bo a lucrative one is indicated by tho figures of British imports of this commodity, as quoted by Mr. Merrett. An average taken over the past few years shows that Britain spends £3,500,000 a year on frozen liquid eggs from China. Tho process of preparation is said to be closely guarded by the Chinese, but it is hoped that experiments will put a superior British article on the English market.

FOREIGN EXCHANGES. British Wireless. RUGBY, Juno 3. 1 lie following rates on foreign oxchanges are current, compared with the cabled quotations on June 2 and par:— June 3. June 2. Par. Montreal, dol. .. 4.20 4.10 4.8(50 New York, dol. . 3.00} 3.(1 D , 4.80(5 Paris, fr. .. 03.50 033 12-1 .'2l Brussels, belga .. 20.40 203 35.(i0 Geneva, fr. .. IR.RS 18.825 2f>.22 Amsterdam, fl. .. 0.10 9.005 12.10 Milan, lire .. 71.75 71.75 92.40 Berlin, r.m. .. 35.00 15.00 20.43 Stockholm, kr. .. 19.50 10.50 If.ISO Copenhagen, kr. . 18.30 111.30 18.150 Oslo, kr. .. 20 1-10 20 1-10 18.159 Vienna, sell. .. SO.HO 30.H0 34.585 Prague, kr. .. 121 i 121J 104.25 Helsingfors, mark 225 215 120.23 Madrid, pes. .. 41.75 445 25.221 Lisbon, cscu. ..110 110 11n Athens, dr. .. 505 51',5 375.00 Bucharest, lei. .. 020 027.50 813.0 Rio de Janeiro, mil. 4 J 41 5.890 d Buenos Aires, dol. 3U 34.25 47.019 d Montevideo, dol. 30t 301 Bid Bombay, rupee . 17 15-04 17 59-04 18d Shanghai, tael .. 20 1-10 20 1-10 Hongkong, d01. . Yokohama, yen . 21 1-10 211 24.58 d Bntnvio., fl. .. 9.12 9.12 12.10 Warsaw, zlotys .. (Nominal. CUSTOMS EXCHANGE RATES. Rates of exchange ruling at (h 0 announced date of departure of tho vessels named nro shown in tho following table. They aro subject lo confirmation by (he Customs Department when tho exact time of departure is learned on tho arrival of tho vessels in New Zealand, finally declared rates being marked*: — Canadian Constructor, Canada, dollars 4.10 Ashburton, U.S.A., dollars . . . . 3,00 Wnikawa, U.S.A., dollars .. .. 3.074 Wttikawn, Canada, dollars . . . . 4.14 Armadale, U.S.A., dollars . . . . y.og CALL AND DIVIDEND LIST. Dividends— Duo. Okarilo Gold Dredging—second, (id a share Early. Wilsons Cement—final, Is a share Juno 8 Perpetual Trustees (N.Z.)—final, Is a share June 10 Robinson fco Cream—annual. _ 8 P-9 „ Juno 14 Bank of N.Z.—final, pref. issue, 33 p.c, and ord., Is 4tl a share and bonus. 1 p.c. . . Juho 17 Australian Glass—final, pref., 9 p.c. p.a., ord., 41 p.c. . . June 22 North Broken Hill—ls fid a share Juno HO British Tobacco—quarterly, lj vr r, P "'r; JllOO 30 N.Z. Breweries—final. 4 p.c. . . July

P. AND O. DEFERRED STOCK. LONDON, Juno 3. P. and 0. deferred stock is quoted at 12s, compared with 12s yesterday.