CHAMBER OF COMMERCE.

New Zealand Mail, Issue 1201, 8 March 1895, Page 33

CHAMBER OF COMMERCE.

The annual meeting of the Wellington Chamber of Commerce took place on February 28. There -was only a small attendance. The President (Mr James McLellan) occupied the chair. REPORT AND BALANCE-SHEET. Printed copies of the report and balancesheet were circulated amongst those present. The report was published in the Times some time since. The statement of aocounts, which accompanied the report, showed that the past year was entered on with a balance of £7 4s 8d in hand, and that £196 17s 6d had been received in subscriptions, which, together with .£l9 18s for hire of room, made up the total receipts to £223 15s 2d. The largest items in, the disbursements were £IOO for rent and £75 for salary of the secretary. Other expenses had absorbed £42 4s, leaving a balance of £6 11s 2d in hand. THE PRESIDENT’S ADDRESS. The President, in moving the adoption of the report and balance-sheet, said the task of attempting a commercial review of the past year was one he approached with some reluctance, because he felt that the statement of facts it involved must be of a most unsatisfactory character. So far as he could learn from enquiry, never before had a president of the Chamber been compelled to review a year dating which the prices of our exported produce had been so abnormally low, and quite out of proportion with the cost of production. Various conjectural reasons were assigned for this shrinkage. Some people looked upon bimetallism as the panacea for all these losses. In his opinion, however, it was to supply and demand and to ruinous competition the whole world over that the true cause was to be ascribed of the exceedingly low level of prices. For instance, in wheat we had the competition of India, Russia, North America and the Argentine Republic, whose products could be put into London at very considerably less cost than ours could be, labour and freight and legislation being factors of the utmost importance to this end. A few days ago he read that the wheat exports of the Argentine Republic were one and three - quarter millions of tons weight, and when the low price of land and cheap labour and the facility of getting produce to the world’s market were considered, it was to these countries that we must look as our most powerful competitors. Until we were able to bring supply of all products more into accord with the demand we would experience low and unremunerative' prices. He was quite prepared to hear sope gentleman say : “Very good in theory, ’but how do you propose to assimilate supply and demand ?” To that he replied .- “ Find out what you can do best—better than anyone else—find new markets for your produce; look to China, Japan, India, Canada,” and in this connection he regretted to have to express the opinion that sufficient had not been done by any New Zealand Government to obtain new markets. In this respect we in l?ew Zealand sadly lacked the energy of our Australian neighbours. Another disadvantage in considering the net results of our exported produce was the heavy freight and other charges. While our prices for produce had fallen so abnormally low, freights had continued at the same rate for several years. This was no doubt somewhat regulated by the fact of wages and the price of coal being also unaltered.

THE DEPRESSION. As to the depression, he was afraid there was no indication of any improvement during the approaching winter. There was no use blinking the fact that the dulness referred to was due in a great measure to the want of confidence that existed in the Colony, to the interference with traders by recent legislation, and to a determination on the part :of those who had the misfortune to be possessed of land to restrict their expenditure on improvements, thereby throwing a large number of unemployed upon the Colony. It was, however, fair to say that low prices of produce had compelled producers, like others in the community, to economise, but generally there was a feeling that the bulk of legislation passed during the pa»t few years had been inimical to the general interests of the Colony, its workers and producers. LAND SETTLEMENT. Still the condition of New Zealand was less unfavourable than that of some of the neighbouring colonies, and among New Zealand cities Wellington did not compare disadvantageously. In dealing with the existing depression it was only right to remember that substantial increase was being made to the wealth-producing power of the Colony by the opening up and settlement of new lands, and the development of industries. Large areas which a few years ago were practically valueless because unused were now being cleared and brought under production, and this process was continuing and increasing year by year. This fact offered a prospect of improvement through the increase of the volume of our exports enabling the Colony to provide for its obligations to outside creditors, in addition to paying for its imports. PROGRESS OE WELLINGTON.

The chairman pointed out that Wellington held first place in the statistics of imports and Customs revenue for 1894, and second place as regarded exports, in which it was only exceeded by Lyttelton. It seemed to him, however, that the volume of exports leaving Wellington was actually much larger jthan the returns represented, inasmuch as the Customs regulations provided for a separate manifest for such portions of the cargo Of outward-bound ships as were received from other ports or other provincial districts and put on board at Wellington, so that such cargo was reckoned as not exported from Wellington, but some other part contiguous. It seemed to him, that justice was not done to Wellington by excluding from the return any portion of the exports that

actually left the Colony from our ’ wharf. Wellington was entitled to be considered the port of shipment for all the produce of its province. Members would see that the difference in question was not inconsiderable when he quoted a few figures from the Harbour Board returns for 1894. He found there that the total shipments in this harbour of wool and hemp amounted to 114,626 bales, of which 56,508 (not far short of one-half) were transhipments, and were credited to other ports. Now, as the value of Wellington exports of wool and hemp for the year to 30th September last was £874,200, the addition of a neatly equal value of transhipments Would swell Wellington’s exports in this line alone by over £BOO,OOO. He thought, therefore, that he was justified in saying that if the port got credit for all the exports that really left our harbour, Wellington would stand highest as to the volume of exports as well as in that of imports. The railway works that were in progress, extending our communication to new and important districts in process of development, would no doubt lead to a further increase in the trade of this port and city. WOOL AND ITS PROSPECTS. Contrary to all expectations this product had continued to fall in value. It rallied about a month ago, but now again prices were such as must prove disastrous to the producer, who had no redress. His interest, labour, railway freights, ocean frieghts and other charges were like the brook : “ They go on for ever.” There was no alteration in the charges (or very little) no matter what price be realised. The only variation he occasionally obtained was to pay the land tax twice in one year. It was a matter of very great surprise to him that producers had not combined to seek some reduction in these standing changes. During the year ended 30th September, 1893, our exports of wool

were 108,960,1381 b, as compared with 1 144,295,1541 b in the same period for 1894, showing an increase for last year of 35,335,0161 b. This was exceedingly satisfactory from a productive point of' view,,because there was a very heavy shortage in the North Island. In his last quarterly address he had endeavoured to give some leasons for the continued low prices of wool, but in addition to overproduction, vagaries'in fashion, the disturbance of financei and tariff reform in America, the production of cotton was alleged to be an important factor. ; . DAIRY PRODUCE. The cheese export for the Colony for the, year ended 30th June, 1894, was 2470 tons, valued at .£106,280, as against 2261 tons valued at <£95,903 for the previous year, showing an increase only of 209 tons. This was somewhat surprising when they considered that New Zealand discriptions had attained such a good position in the Lon-v. don market. The increase in the quantity " • of butter exported, while not reaching the' increase for Victoria, was satisfactory. As this was about the only product that left anything approaching a return to,the pro- | ducer, it was rather strange that the dairy industry did not show a more satisfactory increase. During the year ended June, 1894, we exported 3722 tons of butter valued at ,£303,951, against 2297 tons of butter valued at .£208,909 the previous year, showing an increase of 1425 tons. Of this <£303,951 worth of butter from the Colony, he found from the returns that Wellington was credited with .£102,142, or more than one-third of the whole. He hoped for a better development of our dairy industry, and he thought it his duty to express satisfaction with the action of the Government in refusing to relax the j conditions of the Dairy Industry Act. The I application for such relaxation convinced 1:

him of the necessity that existed for Government control in the export of dairy produce. Carelessness in manufacture and export of inferior quality had resulted in New Zealand butter not occupying the same position in the London market as the Victorian article, notwithstanding that the natural advantages for production were much greater on our side. . BANK RETURNS. The bank returns did not show expansion. In the third and fourth quarters of 1894 discounts were below £2,000,000, a point not reached before for many years. Open advances in the December quarter were £9,905,334, as against £10,335,339 in December quarter, 1893, and £10,388,656 in December quarter, 1892, showing a reduction of £430,000. The deposits were £13,091,173 for 1894, as against £13,541,042 for 1893, and £13,456,036 for 1892, showing a reduction in the deposits of last year of £470,000. The note circulation was £893,715 for December,' 1894, as against £940,418 for December, 1893, and £955,623 for December, 1892, showing a distinct contraction of trade. The deposits and note circulation were in excess of the advances :In 1894, £2,088,867; in 1893, £1,809,593; in 1892, £1,734,160; and in 1891, £1,505,580; showing that funds were accumulating in the banks and available, but unused. This indicated that the banks were able to do all the business without utilising their own capital. The coin in the banks at December, 1894, was £3,103,355, as against £2,480,453 in December, 1893; £2,381,319 in December, 1892; and £2,231,242 in December, 1891, giving an increase of £623,000 since last year. This afforded the banks a stronger position, and was more satisfactory from a borrower’s or depositor’s point of view. OUR GOLDFIELDS. He was disappointed to find that having regard to the large number of unemployed

throughout the Colony more energy had not been applied in prospecting for gold. Although the Government appropriated , over £43,000 for prospecting and other ...purposes during the current year, there had. been very little done, and he was afraid the bulk of this would go to swell the next surplus. Instead of expending this money and keeping our people employed, we were allowing them to drift to Coolgardie, &c. Thanks to the McArthur-Forrest process, the Auckland goldfields showed great signs of improvement. THE RECIPROCITY TREATY. One of the most important commercial events of the year had been the establishment of a reciprocity treaty between South Australia and New Zealand, by which these two colonies were to reciprocate in the exchange of certain products free of duty. New Zealand’s imports from South Ausi traliq, in 1893 of treaty goods were -Fruit “Dried, 56041 b, £95, duty 2d per lb ; fresh, 12801 b, £lO, free. Olive oil—ln bulk, 30 gallons, £ls, duty 6d per gallon; bottled, 12 pints, £l, duty 15 per cent, ad valorem. Salt—Coarse, 1461 tons, £1926, duty 10s per ton. Wine—Bottled, 21,325 gallons, £6598, duty 5s per gallon. Total, £8645. It will be noticed that although our purchases from South Australia of wine amounted to 21,325 gallons, our total consumption was 112,115 gallons, and of this other Australian ports gave us 19,025 gallons, and the total duty was £32,640. Our total of coarse salt imported was 4310 tons, £2155 duty, and of fine 2488 tons, £!L322 duty. Of olive oil in bulk we imported 11,522 gallons, £2BB duty, and of bottled 333 gallons, £SO duty. Total duty, £3805. The South Australian imports for 1893, in money values, were, from all sources, as follow:

Of this, New Zealand supplied—Barley, nil; eats, 1284 centals, value .£340; hops, nilhorses, nil. He was strongly of opinion that free interchange of produce between the various colonies would he most judicious, provided the financial equilibrium could be arrived at; that was to say, if we in New Zealand admitted Queensland’s sugar, Victoria’s brandy, and New South Wales’ tobacco duty free in exchange for our produce, how would our loss of revenue be provided for ? He admitted that the Colonial Treasurer was actuated by the very best of intentions when he entered into the arrangement with South Australia, and that it would be distinctly advantageous to New Zealand had he refrained from committing this Colony to a monopoly with South Australia. In saying this he (the President) referred to the special terms marking the agreement for seven years, but subject to one year’s notice on either side. Such a provision was inimical to the interests of New Zealand. As the law at present stood the action of the Colonial Treasurer was ultra vires. So much importance did he attach to this monopoly of reciprocity, that he hoped the protest would, if found necessary, be carried to the Secretary of Stat 3. BANKRUPTCY LAW. Though there had been an increase in commission earned during the past year, the amount received was altogether too small to pay for the machinery of the law. This was not any indication of the soundness -of. trade, because the increase in private assignments accounted for the smallness ' -of- the sum. .He maintained

J that assignments should contribute something to the cost of a department that had i and would undoubtedly save them from ! the loss of absconders, and urged that the Act should be amended accordingly. WELLINGTON HARBOUR TRADE. The extension of the wharf would give an additional berthage of 610 ft. The total number of ships of all classes arriving at the port of Wellington during the year 1894 was 2284, with a gross tonnage of I 1,026,008 tons, or 93,826 tons in addition to ! last year’s. The total tonnage of goods shipped and received was 335,449, as against 322,866 for the previous year. Mr Gale, representative of the Chamber, had been unanimously elected chairman of the Board. PROPOSED WELLINGTON EXHIBITION. Since the report of the Council had been issued there had been some discussion on the subject of an exhibition being held in Wellington during the coming summer. As usual in Wellington many gentlemen had intimated their readiness to assist the project with their time and money, but as the general opinion was that they would require a guarantee fund of at least ,£IO,OOO or .£15,000 beyond what the Government would do, it was a question of £ s. d. for the citizens of Wellington. Were they prepared to find this amount? From enquiry he doubted it. But if they were he was quit© prepared to call a meeting if so desired by them, and to proceed further with the proposal for an exhibition, provided the citizens exhibited their earnestness in the movement in a practical manner, as it was quite impossible to proceed without the sinews of war. CONCLUSION. In conclusion he must say' that although for the reasons already explained we- were now suffering from * severe commercial depression, he trusted that this might be

soon removed, and that our legislators would not further harass trade. We had in New Zealand a climate and productive power that they were all proud of, and a Colony whose natural endowments were not excelled or possibly equalled by any other colony in Her Majesty's dominions. He had every hope of New Zealand's prosperity if she received fair play; if class was not set against class; if labour and capital were permitted to work together ; and if the Colony, as a whole, joined with' one accord to promote its general prosperity. Mr McLellan moved the adoption of the report and balance-sheet. Mr H. Beauchamp, in seconding the motion, complimented the chairman upon his very interesting address. He had very ably discharged the duties of president during the past year, and he trusted the Chamber would also have the advantage of his services during the coming year. Mr John Duncan regretted that the president had placed so much stress upon the desirability of crediting Wellington with all the transhipped exports in respect of which it was the port of ultimate shipment. It was a pity, perhaps, that the circumstances of the Colony at the present time had necessitated their president giving them a duplicate of the Lamentations of Jeremiah. It was always better to inspire people with hope than the reverse. The President having spoken briefly in reply, the motion was passed unanimously. ELECTION OF OFFICERS. The following council was elected for the ensuing year by ballot:—Messrs J. G. W. Aitken, H. Beauchamp, A. de B. Brandon, W. G. Foster, T. J, W. Gale, A. W. Gellatly, J. B. Harcourt, J. Jack, J. McLellan, E. W. Mills, N. Eeid and D. T. Stuart! On the motion of Mr E. W. Mills, seconded by Mr J. G. W. Aitken, a vote of thauks was passed to Messrs F. W. Haybittle and C. P. Powles for their services as auditors during the past year, and they were re-elected. thanks. . . ' f Mr E. W. Mills proposed and Mr. A. W. Gellatly seconded a vote of thank# to the president, which Mr McLellan duly acknowledged.

Value. Duty. £ £ Barley . .. 5,352 1,736 Is 6d per bushel Oats .. 5,29(1 1,413 2s cental Hops .. 16,(585 6,04S 6d lb Malt .. 15,660 10,928 4s 6d per bushel Horses . .. 11,946 522 40s each 54,939 20,647