THE FLOW OF TRADE

New Zealand Herald, Volume LXXIII, Issue 22400, 22 April 1936, Page 12

THE FLOW OF TRADE

With returns of overseas trade for the year ended March 31 available, there is a basis of comparison to assess the recent fortunes of export industries, and the position of the commodity balance in face of a substantial rise in imports. Export values are naturally higher. The improved prices commanded by dairy produce, especially in the earlier months of the current season, have had an appreciable effect on the total. So has the rise in wool, which was a feature of every fixture during the selling season. Consequent on such influences, the recorded return for exports, expressed in New Zealand currency, is over £4,500,000 greater than in the year 1934-35. The comparative improvement is even more marked for the nine months of the current season of production, which will end on June 30. The prospect is that the producers will have received a substantially better return than in any year since 1930. That imports have responded to the influence of better prices for the output of primary industry is also made clear. The rise in response to the high wool prices of 1933-34 came slowly, but was not checked by the retrograde movement last year. The increase has continued, with the result that imports in 1935-36 have been valued at almost £12,400,000 more than in 1932-33. Even with this increase the visible commodity balance, though well below the abnormal figure of £19,907,000 in 1933-34, .is at approximately the same level as in 1932-33 and 1934-35. The extreme sluggishness of import business, which was most marked in 1931-32, has disappeared in a considerable measure, but as yet there is no appreciable danger of the overseas balance falling below the margin of complete safety.