DOMINION TRADE.

Otago Daily Times, Issue 19270, 6 September 1924, Page 10

DOMINION TRADE.

£50,000,000 OUTPUT. VALUE OF LOCAL INDUSTRIES. EXCHANGE POSITION DIFFICULT. (Fbou Oub Own Corbmbondent.) WELLINGTON, September 5. Tile annual report ot the Department of Industries and Commerce states thqt despite the checks of the past tew years tho industries ot the dominion are steadily progressing, and the fact that the value of output of the secondary and the extractive industries has reached nearly £50,000,000 is both a revelation and a source of gratification to our citizens. With the provision of hydro-electric power to an everincreasing extent annually this production can be greatly augmented, and manufacturers look to the future with confidence and aver that it can be obtained at lessened cost with tho aid of “white” coal. If the people of New Zealand will support their own industries and all things being equal buy New Zealand made goods, then there con be no doubt that it will be the main factor in aiding a complete restoration of our national prosperity. The report states that while the importance of local production for local use is overlooked, there can be no doubt that tho overseas trade of the dominion is the determining factor as between buoyancy and depression in the Coonmoio life of the country. The total values of exports and imports for the past four years are shown as folfow:

Exports. Imports. 1920 £46,441,946 £61,695,828 Isfcl 44,828,827 42,744,122 1922 42,726,249 32,826,074 1923 45,967,119 43,486,54^

The comparatively steady level of the export figures, states the report, would appear to be an indication that prices for the main exportable commodities may fluctuate considerably, as, indeed, they had done, without seriously disturbing the total value of exports. The movements of prices of the several main exports had doubtless bad a compensating effect. Imports on the ouier hand had shown during the past four years remarkable fluctuations. It was seldom fully appreciated that by reducing the amount of imports our local manufacturers could, and did, increase the dominion’s favourable trade balance, and so assist in meeting our indebtedness abroad. “It cannot be said,” the report continues, “that the foregoing figures in themselves indicate an entirely satisfactory position, and while the transmission of capital into New Zealand must obscure the real position, our exports must, apart from capital considerations, show a sufficient surplus over imports to pay our interest bill overseas.”

For the five months from January to May, 1924, exports had reached the high figure of £30,810,347. The similar period fpr 1923 the figure was £26,026,278. This heavy increase during the main exporting season had apparently proved to bo more than could be handled at normal exchange rates, and although imports had been fairly heavy at a total of £18,761,247, the seasonal excess of exports had been greatly accentuated in 1924. POSITION OF TUB EXCHANGES.

The position of the exchanges between New Zealand and Australia was doubtless controlled by our relationship with London, and ns Australia was at the present time faced with a difficulty in the London exchanges similar to our own, traders were experiencing some trouble in making payments to Australia even at the high exchange rates demanded. It was generally expected that the exchange position would become much easier now that the main exporting season had ended, -but as the difficulty was likely to recur in greater or lesser degree in succeeding export seasons, consideration should and doubtless would be given to the several remedies which had been proposed. INTERNAL TRADE.

It was by no means easy to secure comprehensive and conclusive statistical information as to the condition of the internal trade of the dominion. It was evident, however, that the general state of internal trade and industry during the year had been reasonably satisfactory, and there appeared to have been little of the unemployment which was noticeable during the previous two winters. One or two industries, noticeably the boot and shoe industry, were, still depressed as a result of heavy importations, but there was a fortunate absence of that general depression of trade which was the result of unsatisfactory financial conditions. OPERATIONS OVERSEAS.

The department expresses the opinion that it would take months of effort to secure a trade footing in Java, and that the best means of securing trade was for New Zealand houses to send expert commercial representatives to the East, with samples, if possible, so that conditions might be studied on the spot. In Samoa New Zealand held second place iu the value of exports, and there was further scope for the dominion to secure some of the trade that was now going to Australia. The latest available statistics from Fiji showed that iu value of exports New Zealand held third place, Australia continuing in the first position. It was felt that the dominion’s position could be greatly improved if closer attention was paid to this market, especially in such commodities such as live stock, bacon and hams, butter, cheese, tinned and preserved meats, tallow, tinned milk, powders, and sugar. The trade outlook with the Cook Group was most promising. The bulk of tho import and export trade was done with tho dominion, and the marketing ov fruit was bound to be extended. The trade with Hawaii continued steady.