IS THE DOMINION SOLVENT?

Otago Daily Times, Issue 15707, 8 March 1913, Page 4

IS THE DOMINION SOLVENT?

'AN INTERESTING INTERVIEW. MR MABIN'S~CONCLUSIONS REFUTED. Some rather startling evidence was given by Mr A. E. Mabin, president of the Wellington Chamber of Commeroe, before the Dominions Royal Commission at Wellington last Wednesday. In reply to a question by Sir Rider Haggard Mr Mabin stated that the exports from the dominion exceeded the imports by something over' a million, and we had three millions a year-to pay for interest on the national debt and probably one million for interest on the debts of local public bodies, and it was very probable also that a great part of our private indebtedness was due to foreim corporations. Our interest bill was possibly about five'million's in all per year. From these faefs Mr Mabin deduced tho the conclusion that New Zealand was not paying its way. . A CRITIC CRITICISED. On being asked to give an opinion on the statements made by Mr Mabin, Mr J. Loudon, president of the. Dunedin Chamber of Commerce, said it wae evident that Mi* Mabin.had either said too much or, paradoxical as it might seem, had not said enough. The statements as reported appeared to have been loosely made and scarcely indicated the mind of a student; for instance, in reply to one of the commissioners as to the dominion going to the bad about four millions per annum, Mr Mabin was reported to. have said that the figures of last year proved such to be case and that previous years were nearly as bad. Such an assertion was hardly in accordance.with fact, because in 1909 the value of exports (excluding specie) exceeded that of imports by £4,818,689, nnd in 1910 by £5,404,250. It was true that in 1908 the balance of trade was the other way to the extent of £1,171,957, but the three previous years, 1907, 1906, and 1905, showed an annual average surplus of exports of £3,457,378. It was also true that for the last two years our imports had exceeded our exports, but' this, to liis mind, did not warrant the deduction that the dominion was going to the bad to the extent stated, or that it indicated any want of solvency. Trad'eks Carrying Large Stocks. Asked as to the question of over • importation, Mr Loudon said he believed there was a -tendency amongst traders to carry.too large stocks, and; in this he was fortified by the opinion of a gentleman interested in one of the largest merchant importing concerns in the dominion, who volunteered the statement that in nearly every city and town stocks were carried much in excess of legitimate trade requirements, This state of affairs was induced according to his (Mr Loudon's) informant, by the large indent importing business wliich had sprung up in reoent years, and the good credit in which the mercantile community generally of New Zealand was held throughout tho world. It was a question, however, for individual traders, and would be adjusted by them, and no doubt if such a condition existed as he had outlined they would speedily come to the conclusion to make their stocks conform to their trade needs, to avoid depreciation and loss of interest. He also believed that no gauge of our imports was complete or reliable without a record showing the amount of value of unrealised importations on hand. In a, time such as this he believed it would be found that their assets under this head were exceedingly high. Wealth of the Dominion. Requested to express himself on the broad question, Mr Loudon said it was too big a matter* for him to deal with on the spur of the moment, seeing that recognised economists differed in their opinions on the subject. When one made the statement that, because the imports of a country exceeded its exports, consequently such a country was gradually being impoverished, the whole of the surrounding conditions must be taken into consideration. If a country spent temporarily more than it produced with the object of ultimately enhancing its productivity, then the accretion to its national and private wealth by reason of such expenditure must be taken into account, and if this test were applied to New Zealand the result appeared satisfactory. The following figures spoke for themselves. The number of persons liable to pav land tax had increased from 1901 to 1910 from 16,900 to 33,200, and those liable to pay income tax for the same period, from 5700 to 11,200. The unimproved value of land had increased from 1902 to 1910 from 95 to 175 millions, and the improvements for the same period from 59 to 102 millions.. The bank deposits had also increased from 1900 to 1910 from 15 to 24 millions.

MR JOHN DUTHIE'S VIEWS. (Per United Press Association.) "WELLINGTON,-March 7. ■ Mr John Duthio gave evidence before .the Dominions' Royal Commission to-day in referenco to the statements made by Mr Mabln regarding New Zealand's financial position. "Mr Mabin did not." Mr Duthio said, " adequately represent the true position. Now' Zealand started only 60 years ago as a savage country, and it is now well loaded, has railways from end to end, high-class shipping accommodation, and all the requirements of a civilised community." He showed that the indebtedness of the dominion was set off by its valuable assets, and the money lent was well securcd, and was being employed in the genuino development of the country.