TRADE OUTLOOK

New Zealand Times, Volume LII, Issue 12169, 20 June 1925, Page 4

TRADE OUTLOOK

SURPLUS OF EXPORTS MUST CALL A HALT IN LUXURIES N.Z. BANK CHAIRMAN’S WARNING. Pointing out that the surplus of our” New Zealand exports over imports is insufficient to pay the interest charges on our overseas indebtedness, Sir George Elliot (chairman of directors) declared at yesterday’s meeting of the Bank of l”ew Zealand:—“ln New Zealand there is not the slightest doubt that, in private life, people are spending too much on imported luxuries, and it is time to call a halt and consider the position. “tor the year ended March last (stated Sir George) our imports amounted to £49,821,095, while our exports totalled £54,771,158, the difference in our favour being £4,950,063. It must be obvious that this surplus is quite inadequate to meet the amount which is annually required to pay interest on loans raised by the Government and local authorities outside the Dominion. It is true that towards the end of the financial year there was a considerable slump in the price of certain of our primary products, and that a fair proportion of our exports was held over in the hope of a better market developing in the neat future; but, even if prices had been maintained, and all the goods in store been shipped, though the relative position would have been improved, the final balance would still have been insufficient to justify an optimistio view of the position at the present moment. Any advice as to the need for general economy is unpalatable. It has been given so often that I am afraid it falls on deaf ears. In New Zealand there is not the slightest doubt that, in private life, people are spending too much on imported luxuries and it is time to call a halt and consider the position “BRITAIN ALSO DISLIKES” TRUSTS” “New Zealanders particularly dislike the idea of trusts and combines, and rightly so; but we must not forget that anything in the nature of a trust is also disliked in Great Britain. It would be unfortunate if the formation of pools for the management and sale of all our products were carried to such extremes as to impress our customers across the seas with the idea that, whatever the conditions were in New Zealand, we intended, either by flooding the market or by keeping' it. baTe, to extract the last penny;,,: possible for our wares. Let me say again, that the United Kingdom is our great market, and by ordinary methods we have built up an increasing business there; but if the idea gained currency that, we intended to exploit it for all we were worth, it is conceivable that , the people generally might retrain from buying New Zealand products and turn their attention to other lands for their requirements. They have grown accustomed to the ordinary rules of supply and demand, and they bear with equanimity soaring prices when supply is short, but they expect the natural fall in values when 'the supply is plentiful. “DANGER OF MARKET RIGGING” “The proper storing, shipping, and marketing of onr wares is essential, but the greatest care should he taken to avoid even the appearance of pricefixing or market rigging, moro especially at the present time, when everything from New Zealand is popular in the Mother Country, and when attempts are being made to draw the bonds of Emnire closer, economically as well as socially. When I was in the Old Countrv recently 1 noticed with much gratification the high esteem in which New Zealand and New Zealanders were held. Without a doubo this favourable impression is to be traced to the men who went overseas to fight the battles of the Empire, no the way they lived, and to the wap thep died, and it behoves us that we should be extremely careful in the future that we do nothing to alienate the goodwill engendered. W’e are gradually settling down to the even tenor of our wavs; hit by bit wo are getting back to conditions which prevailod prior to 1911. New Zealanders possess a great inheritance; a productive country with an equitable climate, where extremes are unknown ; a land of fertile plains and smiling uplands; a people ol fine British stock as pure na that to he found in the heart of England. “OUR FUTURE WELFARE ASSURED” “We have many valuable assets, and if, minding our own business, we exercise ordinary wisdom in the general management of our affairs, the future welfare of our country is assured. We shall naturally have ups and downs like others, hut if we work and strive with a due regard to the unity and well-being of all the varied sections of our mighty Empire, we in New Zealand must, in the general prosperity of a united people, reap an abundantharvest.” “PRESENT WOOLLEN TRADE" Mr William Watson (another mem oer of the board of directors), in second ing the motion for the adoption of the report and balance-sheet, said: “When, as pointed out bv the chairman, the value of the exports only exceeds th h t of the imports by a much less amount than that required to meet the interest payable outside the Dominion, it is surely time for sensible and honest persons to pause and consider. Much has been said about the cost of living, and some people will glibly remark that it is the same all over the world, hut I am not so sure about that, and, in any case, T am dealing with New Zealand only. Tu addition to the materials produced, manufactured and used in this Dominion. it must be acknowledged that £49,800.000 is much t too high an amount to nay for imports during one year, and there can he no doubt that .a very large portion of these import o consists of luxuries, and this, to a considerable extent, from foreign countries. which in the circumstances, aro not only unnecessary but positively harmful to the future welfare of the country. Possibly bankers, as well as merchants and others, reap temporary benefits from the present swollen trade, but it is surelv at the expense of the community if its income does not meet its expenditure Further, if the high rate of living he allowed to progress and wages be raised in accordance with it the nroduetion - of our exports will bccglfy, ro exneusive a* to orovrut opr com UUP* —itb other - -"-tries.”