TRADE AND FINANCE.

Taranaki Daily News, 5 January 1924, Page 6

TRADE AND FINANCE.

CONDITIONS IN DOMINION. REVIEW OF THE YEAR. VASTLY IMPROVED CONDITION. i Early in the year it became apparent ! that the country had recovered from the ■ shock of the slump of 1920-21. This i was clearly s-hown in the banking returns for each quarter of the year. Dur- ‘ ing the slump period the banks put a tremendous strain on their resources in . their efforts to help the country throuoh the crisis, and at the same time they imposed restrictions on borrowers, and exercised such control as forced the people to realise the necessity for strict economy. Imports of merchandise, which were very much in excess of requirements, and which were, unfortunately, taken in at peak prices, were liquidated as speedily as possible and at considerable loss, and a -policy of restricted imports enforced. This involved considerable hardship and much unemployment, both of which were inevitable, but the* resultant effect was to retrieve our economic soundness. Almost coincident with the pursuit of the policy of economy the prices for our exportable primary products began to improve. Owing to shortage of world supplies dairy produce was favourably affected and practically all through the year values have been on a payable basis, notwithstanding violent fluctuations at times. For a considerable time the prosperity of the country depended largely on the dairy industry. The frozen meat industry did not come up to expectations, the beef market being depressed for some time. Notwithstanding this, the monetary return fipm frozen meat during the year was greater than in 1922, the amount received for the eleven jmonths ended November 30 was £8,687,557, as compared with £7,971.201 in the corresponding eleven months of 1922. Wool has. not been a particularly good asset; as a matter of fact for the eleven months to November 30 last the value of the wool exported amounted to £10,0.52,1.24, as compared with £11.'541,436 in the corresponding term of 19.32. It is this season that crossbred wool is. coming into its own, and the enhanced value of the clip will be shown in the figures for 1924. EXPORTS AND IMPORTS. The total value of our exports for the eleven months was £42;242,049 . as against £3'9,149,1972 in the eleven months of 192*2, an increase of £3,092,077. For the past two years the exports have shown a substantial increase over imports, and, in addition, there has been a fair amount of borrowing in London on the part of local bodies, which has placed the country in possession of n considerable amount of capital. The country has thus enjoyed a measure of prosperity to which it was a stranger in 1922. Merchants and traders have secured a larger turnover, and this has necessarily involved an expansion in the imports of merchandise. For' the pa<?t >ix months the returns have ; shown an increase in the imports each mont'h, and this feature cf our trade will continue, for there is at present no other way of arranging for the transfer of credit to New Zealand from London. Some people appear to be alarmed at the increase in the imports, more especially because a substantial proportion of the increase come* under the heading of luxuries. The imports for the eleven months to November 30 show an increase of £5.277,815 over the figures for the corresponding term of 1922, and of this amount £1.419328 accrues under the heading of motor vehicles, the actual figures being £2,202,051 against £792.7 1 23. The imports of motor bicycles were valued at £129,761 against £47.532, and motor tires £711,100 against £442.910. It is not so much in motor vehicles as in the drapery trade that there has, been overimportation. if any. Thus apparel accounted for £1,927.831 against £l,-187-573; carpets, £6.30,640 against £350,821; drapery, £500.332 against £303,794; cotton goods, £2-375,916 accounted for £1,927.321 against £l,i 105,963 against £733.867; and boots and shoes £1.029.037 against £532,019. | The increase in th? imports seems t? • be warranted by the circumstances of the Dominion, and the excess imports of I some lines of merchandise is the result of misjudgment or and occurs every year. MONEY IN AMPLE SUPPLY. The improvement in the economic conditions of the country has been shown in the Customs revenue, in the increased revenue of the State and the better showing of th? railway accounts. Money, has been in ample supply, and approved securities have been readily taken up. At the annual meeting of the members of th? Auckland Stock Exchange the chairman stated that there were ample funds for investment, and this has been i confirmed by the general upward trend of Stock Exehatige securities. Nearly all classes of share* have appreciated in ; value, and some are so very high that i the return to the investor is exceedingly ( small. During th? year comparatively ■ large amounts were found in respect of j debentures. The New Zealand Breweries raised over £500.000 in debentures, several local bodies were also successful in marketing their debentures locally, and there were several issues of shares’ as. for instance, the Bank of New Zea- ‘ land. The balance-sheet of the joint ‘ stock companies, with the exception of 1 freezing companies and co-operative so- ' cieties, have been on the whole, very 1 satisfactory, and the dividend list has f been well maintained. f

The closing year has disclosed many encouraging*fea.tures, which appear to have an enduring character, and the outlook for 1924 is exceedingly promising. There is every indication that dairy produce will remain high in value, with an increase in production to add to the incomes of the dairy farmers. There should be an increase in the output of frozen meat; if so, this should compensate for any decline in values. The recovery of the value of crossbred wool will be the main support of t-he Dominion in the New Year. This season’s clip is fetching pence above that of the past season, and as the flocks have increased slightly there should be a larger clip to market. Our wool clip will probably bring in two millions sterling more than the last clip, which should add materially to the prosperity of the country. If the political tangle of Europe can be straightened out and continental trade induced to flow through its proper channels. New Zealand should share to an appreciable extent in the resultant prosperity.