TRADE OF THE DOMINION

Taranaki Daily News, 23 July 1929, Page 12

TRADE OF THE DOMINION

' • THE FIGURES DISSECTED A HEALTHY POSITION - . FULL CONFIDENCE JUSTIFIED. (From Our Own Correspondent). Wellington, July 20. With the release of the returns of oversea trade by the Customs Department for the period to the end of June it is possible to make a comparison of the country’s trade for the half-year and the year. ’The exports for the year ended June 30 last amounted to £37,771,541, which contrasts with £37,751,272 for the corresponding six months of 1928, showing an increase of £56,269. This is a small increase but nevertheless satisfactory, for it shows that the volume of production is being maintained. It is hardly probable that prices have helped much in this, for prices for many lines of produce have eased. Taking the twelve months to the end of June the exports are valued at £56,334,750. as compared with £55,619,285, an increase, of £715,165. It will be noted that the greater part of the increase occurred in the first half of the produce year, which rather goes to show that prices dropped in the second half. The Statistical Department closes the produce year on June 30, while several Chambers of Commerce take Sept 30 as the close of the produce year, and the I chambers would appear to be right, for in the months of July, August and Sep- , tember there is a fair amount of the season’s produce exported. The policy of the dairy and meat boards is to regulate shipments, and so a good deal of meat and dairy produce goes forward in the September quarter. However, accepting the statistical department’s dictum, the exports for the past twelve months fall short of the record by over £190,000. The record was reached in 1924-25 with exports valued at £57,449,976, but the export figures for that year were greatly swollen by high prices, for in the following year, when prices eased off considerably, the exports fell to £46,3-36,-847, a fall of over £11,000,000 on the preceding year. But in the year just ended increased production played a prominent part. We have now had two favourable years for exports, and in the nature of things we cannot expect a continuance of such conditions. Other countries are increasing their production, and the competition for foreign trade is intense. If, as is probable, Dominions lose the British preference, that will make matters worse. 11 e must increase production, and at the same time reduce costs of production, so that with even a further fall in prices producers will earn a reasonable profit. Turning to the imports, the total for the six months ended June 30 last was £22,537,443 as compared with £20,915,700 in the corresponding six l months of last year. For the whole year to the end of June last the imports aggregated £46,508,000, which contrasts with £45,497,942 in the previous year. There was no doubt that in 1925 and 1926 imports were affected by mass insanity, for in both those years the imports were well over the £50,000,000. The curtailment of imports then became imperative until stocks were liquidated, and that appears to have been accomplished last year. Now it is necessary to replace stocks, and, further, the outlook is for an expansion in domestic trade, and traders will need adequate stocks to cater for this trade.

Of the total increase of £3,010,067 in imports for the year more than half the increase is shown by the second half of the year, which seems to indicate that confidence in the local situation is increasing. The balance of trade on the bare export and import figures are not as favourable as last year, for the balance in our favour is £9,826,741, while last year it amounted to £12,121,343. But this is only of passing interest, for we can never get even an approximate estimate of the balance of trade until some serious and sustained investigation is made into the invisible imports and exports. The ramifications of these are somewhat hidden. However, on the actual trade figures the position is satisfactory, and if it continues so all will be well. All the essential factors that indicate a country’s economic conditions point to the fact that the conditions in the Dominion were more satisfactory than they are now. The bank returns, the trade returns, the bankruptcy returns and the transactions; in real estate provide excellent reading, and combine to emphasise the fact that full confidence in the country is justified.