DOMINION FINANCES.

Otago Daily Times, Issue 15705, 6 March 1913, Page 4

DOMINION FINANCES.

A SEABCHING INQUIRY, ' ■ DISTURBING FIGUEES. (EEOU ODB OWN Cobeespohdekt.) WELLINGTON, March 5. : Tho financial position of New Zealand was examined nnder a very strong searchlight by the members of the Dominion's Royal Commission sitting in Wellington to-day. Mr A. E. Mabin, a. member of the firm of Messrs Levin and Co., and president of tho Chamber of Commerce, was . being questioned by the members of the commission. •'Sir Eider Haggard: You say that New Zealand is not paying its way by several millions per annum. How is this so? Mr Mabuu Our exports cxceed our imports by something over a million, bnt we have three, millions a year to pay for interest on our national debt and probably one million for interest on the debts of local public bodies, and it is very probable also,that a great part of our private indebtedness is due to foreign Our interest bill is possibly about five millions in all per year. Sir Eider Haggard: Then you say the country is not paying its way by four million pounds a year? Mr Mabin: That is figures for last year show, and previous years wero nearly as bad. Sir Rider Haggard: Then the property of this country is not so high as it is understood to be? .Ah' Mabin: That is recognised by the commercial community, and the Government lias recognised it also by drawing in its horns considerably. Sir Rider Haggard: In fact the position is not sound. Mr Mabin: .That appears to be tho cause. Mr Lorimer: You say the dominion is not paying its way by several million pounds a year and there is no industry being developed that is likely to become a largo exporting industry? .Mr Mabin: No. Mr Lorimer: Then if yon wish to pay your way,you must develop the land? Mr Mabin: Yes. ' Mr Lorimer: If the country is to be made solvent you must increase your exports of wool and meat and all the products of the land for which you can find au unlimited market in Great Britain? Mr Mabin: That is so. Mr Lorimer: I believe that yon cannot manufacture more goods than are sufficient for local requirements? Mr Mabin: No, we cannot export manufactures. Sir Edgar Vincent: You spoke of the danger of increasing im]>orcs without a corresponding increase in exports. The figures we lave are very remarkable. In 1911 there was an exoess of imports of nearly a million, whereas in previous years there has been an exoess of exports of from one and a-half ,to three 'millions. Your imparts went up two and a-half millions, whereas yonr exports went down three millions. That is extraordinary, surely ? Sir Alfred Batemau: Is not that tie year .of. a. large loan? Mr ..Mabin: That is every year sir.— (Laughter.) Sir Alfred Bateman (referring to the Year Book): Seven millions borrowed in one year; surely that.is not usual? . ' Sir Edgar "Vincent: Oh, they got another three millions a week ago. Mr Mabin: One wonders what is to huppen when we stop borrowing. We must increase our exports. Sir Edgar Vincent: Was there anything like failure of crops to account for the decrease in 1911? Mr Mabin: Not that I know of.