NEW ZEALAND'S FINANCES

Southland Times, Issue 17289, 8 March 1913, Page 5

NEW ZEALAND'S FINANCES

AN -INJUDICIOUS STATEMENT. SUBSEQUENTLY QUALIFIED. (Per United Press Association.) WELLINGTON, March 7. A good deal of adverse criticism lias been aroused by statements on the financial position of New Zealand, made by Mr A. E. Mabin, president of the Chamber of Commerce, when giving evidence before the Dominions Royal Commission on Wednesday. Mr Mabin told the Commission that llie country was not paying Its way to the extent of four millions a year, and that its financial position was not sound. Under examination by Sir H. Rider Haggard, lie stated that the prosperity of this country was not what was generally recognised. On Thursday afternoon Mr Mabin attended a sitting of the Commission and made the following explanatory statement:— “Regarding some remarks in answer to questions made by me at the sitting yesterday regarding the relation of exports to Imports, more may be read into my answer than Intended. Whilst it is a fact that our exports are at present insufficient to pay for our imports, .together with our interest obligations, yet I Co not consider that the Dominion is in any financial danger. The heavy imports of recent years may be largely attributable to importations for works undertaken by the Government and local bodies, and are in the nature of capital expenditure, which will, in the course, of a few years, bring an adequate return for the, outlay. In the meantime the trade returns do not look well, hut there is no reason to think that the capital expenditure represented by a considerable portion of our Imports will not show better returns and tend to Increase the volume of our exports;”

Later in the afternoon Mr David .7. Nathan furnished the following statement on the subject of the country's finances;—"Mr Mabin has made statements speaking, as he says, for the commercial community, that the Dominion is not paying its way. and that no industries are being developed, if Mr Mabjn's statement is correctly reported .1, as one of the merchants of this city, a director of the Bank of New Zealand, and a past president of the Wellington Chamber of Commerce, desire to have an opportunity of placing on record my statement that Mr Mabin's remark would he confirmed by scarcely any other commercial man in New- Zealand. It is quite true that the Dominion for a few years past lias suffered from statements of a similar description made by politicians for party purposes, but none of us here have ever treated these statements seriously. The present Government, in a statemnt to the London press a month ago. when they Invited subscriptions to the last loan, gave an optimistic, yet true, account of tli© national position of the Dominion — a statement which is only confirming statements made by the previous administration. 1 fear that Mr Mabin, clothed as he is temporarily with the position of president of the Chamber, lias allowed the remarks lie is reported -to have made to he given rather too hurriedly and without proper consideration, it would not he opportune to go into tliis matter in any great detail, but a glance at the official Year Book of 1912 will show that in every walk of life the Dominion has progressed and w-e know- it is progressing in every sense of the word.” Mr John Duthie gave evidence before til © Empire Trade Commission to-day in reference to the statements made by Mr Mabin. "Mr Mabin did not.” Mr Duthie said, “adequately represent (lie true position. New Zealand started only sixty years ago as a savage country, and it was now well roaded, had railways from end to end. high-class shipping accommodation, and all the requirements of a civilised community.” He showed that th© indebtedness of the Dominion was set oft by its valuable assets, and the money lent was w-ell secured, and was being employed in the genuine development of tile country.