TRADE WITH SOUTH AFRICA.

Otago Witness, Issue 2413, 31 May 1900, Page 9

TRADE WITH SOUTH AFRICA.

POSSIBILITIES FOR NEW ZEALAND

PRODUCE.

Mr J. B. Waters, who recently made a special trip to South Africa on behalf of Messrs A. S. Paterson and Co., of this city, "with the object of ascertaining what outlets that country afforded for colonial produce, having returned to the colony, kindly consented to give some particulars of the results of his observations to one of our reporters.

" As regards South Africa as a market for 'Australian and New Zealand produce," said Mr Waters, in reply to a question, " an examination of the chief 'east coast ports shows conclusively that there is there a considerable opening for wheat, flour, tinned meats, frozen meat, potatoes, oats, pressed forage, and, in fact, for all foodstuffs produced in Australasia."

"From a New Zealand point of view, the question is : To what jextent can New Zealand profitably participate in this trade?" was the next question.

Mr "Waters replied.: " She lias participated Very largely in the war- -demand, and, in a fair degree in the ordinary -trade, but before she gete a good hold difficulties, have to be overcome. "Melbourne and Sydney are much nearer South Africa ' than the New Zealand ports, and our Australian friends have considerable facilities in the Avay of freight. There are two services running regularly to South Africa, besides intermittent cargo boats running to all ports. Against this, New Zealand possesses almost no means of communication beyond spasmodic attempts at chartering, depending largely on inquiries from the War Office. Being desirous of establishing a permanent trade, and not merely of supplying the abnormal demand created by the war, New Zealand shippers arc naturally anxious for the establishment of a regular steam service. This raise 3 the question of rates of freight, and in the present disturbed state of the freight markets of the world this question cannot be immediately settled. '" Our chief competitor in South Africa is 'the United- States, and South African " merchants naturally gauge all our charges by American standards. Now, American boats are content, as a rule, to carry case goods and flour from America to South Africa- for from 30s to' 3ss per ton measurement, and unless we cart get the same freights for our produce we are very much handicapped. We can place our produce f.o.b. at our ports as cheap, if not cheaper, than Americans, but the present freight by the Government-chartered boats averages 55s per ton measurement — a difference in favour of American shippers of 20s. Given a regular and moderately reasonable service to South Africa, it is certain that a very considerable market can be opened up there for many of our principal products." "As regards frozen meat," continued Mr [Waters, " the South African market is at present supplied from Australia, and it is doubtful whether any considerable field awaits New Zealand mutton, because it is considerably dearer than Australian, and in that climate the lean Australian meah is found to be more suitable. South Africa is what we would call a pastoral country, but is subject to severe vicissitudes in the way of droughts and insect pests." ".The demand tot fooditulfe from abroad is'

erratic, but, taking one season with another, there seems to be every prospect of there being a very large and increasing market. The j .general anticipation throughout South Africa j is that there will be a very large influx of ' both capital and population immediately fol- j lowing the cessation of hostilities. The policy of recent Governments in South Africa has j been to encourage agriculture by levying very heavy duties on all imported foodstuffs, but, despite these artificial aids, the farmer, partly owing to the non-progressive Dutch element, i and partly io the ratural drawbacks already ] mentioned, has been unable to produce any- j, thing like the quantities of wheat, maize, j meats, etc., required for local consumption, j At present the greatest uncertainty exists in ' South Africa as to what will be the policy > pursued by the British Government, and its effects on local politics." In reply to further questions, Mr Waters said: "There "Is considerable talk of an ultimate Federated Jjputh Africa, on the lines of Federated Australia, and in conjunction with this one occasionally hears a good deal about preferential tariffs in favour of the British colonies. At present this, of course, is talk, but there may possibly turn out to be something in it. Under the 'Sohreiner Government and the rule of the Afrikander Bond, there was, of course, no hope of this, the motto of these politicians'.being "Africa for the Afrikander," but the war will result in benefit to the Australian colonies, if it is the means of opening South Africa to our produce. Pending a regular steam service, all interested must acknowledge the great assistance rendered by the Government in chartering steamers and placing their space at the disposal of shippers. WELLINGTON, May 23. So many opinions have been expressed as to the field that is supposed to exist for I our produce in South Africa that the experience ot one who has tried the market will be noted with some interest. Mr C. Jacob, who accompanied the troopship" Knight Templar from Lyttelton to Durban and East London as providore for Major Jowsey's Rough Riders (the colony's third contingent), has been interviewed. Mr ! Jacob took a trial shipment of produce on ' the Knight Templar. On arriving at E v ast I London he went the round of the wholesale ■ houses, and offered his stock for sale, but I to his astonishment he found the market j glutted, and no merchant would offer him what he considered a reasonable price for his wares. As he had received notice ! that he must immediately land his shipment, which comprised general ship's stores, Mr Jacob decided to offer the produce at pvblic auction. There he became acquainted with the excessive ■ landing rates and custom duties. By the time his cargo had been landed from the ship to the auction rooms it cost 4a per ton for handling, and, as to customs rates, flour, for instance, was charged £°t 10s per ton. Mr Jacob quoted rome of the prices received at the auction, and at the same time gave the cu'iboms rates which he had to pay. Tha majority of the persons who al/tcnded the sales were retailers and retailers' agents, and the prices brought were, about es uusatisfscfcory as they well could be

in the New Zealander's opinion, though in several cases they went above those quoted by the merchants. Flour brought £14 per ton. Butter of the best quality only secured an average of 8d per lb (duty 2d per lb). Bacon, on which there was a similar rate of duty, brought Is per lb. Mr Jacob lost heavily on a quantity of tea and coffee offered, as lie liad to pay 6d and lOd per lb duty respectively on those articles. Sugar (2d per lb duty) sold at 18s 9d per 1001b, beans and peas just •reached New Zealand prices, and ham (on which the duty was 2s per dozen lib tins) sold at 6s 3d per dozen. Whilst going round among the merchants the seller could not get a Avholesale quotation for preserved" meats, on which the duty was 2d per lb, but at auction they brought s£d per lb. A parcel of New Zealand hops sold at Is 3d per lb. Potatoes were poor of sale, and carried 7£ per cent. duty. Cheese (2d per l'b duty) brought top retail prices, lO^d, and oatmeal sold at 16s per 1001b. " So," added Mr Jacob, " you will see that there is no encouragement for other people out here to take our produce to South Africa. As a matter of fact, the glut is not confined to East London, but Durban and Capetown are in the same state, and at all ports there are large numbers of steamers heavily laden unable to discharge their cargoes. The supply of all stores is greater than the demand. Why, in Durban and East London the public places are stacked high in the open air with horse fodder, and I saw stacks fully 600 ft square, and you could buy hay m Durban at Id per bale. When the war is over there will be a terrible glut in fodder and stores." During his stay in East London the New Zealander drove out into the country, and he has a very poor impression of agricultural and pastoral prospects in that portion of Cape Colony. What with locusts ! and blight, there is little encouragement to | .grow crops. The climate was a shade j warmer than that of Auckland. The town ' itself has poor sanitation. Living is dear, I second class hotel rates being 10s to 12s 6d per day ; but it has a beautiful public park, a fine town hall, and an electric tram system. The inhabitants were for the most part pro-Boers, and spies abounded. He saw an Australian milch cow sold at auction for £35, and another " poor" thing " brought £25. Some New Zealand horses brought only £7 and £8. There was a great demand for all classes of railway men, from drivers to clerks. During the voyage to South Africa Mr Jacob gathered from many of " Jowaey's boys " that their object in going to the Transvaal was the hope of securing land and settling down after the war. Whilst in East London he had many conversations upon this topic with Imperial officers, and the impression he received from them was Lhat the colonials avlio looked for grants ! of land would 'be sadly disappointed. The \ officers sa.id that, except for garri&on piu 1- ' poses, no colonials who had served in the war would be allowed to stay and take up

j land. After the war was .over they would 1 either be drafted into the British army or ] would* be senb back to their colonies. If | the colonials were given land they would become an element of danger, in that the Dutch, would nob take kindly to those whom they already term trespassers. The Imperial officers thought it "would not conI duce to peace if confiscated land was given 1 to men who Bad fought against the origiI nal settlers. Whilst in East London Mr i Jacob saw a large number of the soldiers who had come down after the relief of Ladj'smith. They were in a terribly dilapidated condition. He lias brought back a Mauser bullet picked up on Surprise Hill, and a bit of biltong (the compressed ■ beef carried by the Boers) as souvenirs' of his visit. He is well pleased to get 'back again, and thoroughly satisfied that South Africa is not yet a paying market for New Zealand produce.