The Daily News FRIDAY, JANUARY 26, 1934. LAST YEAR’S TRADING.

Taranaki Daily News, 26 January 1934, Page 6

The Daily News

FRIDAY, JANUARY 26, 1934. LAST YEAR’S TRADING.

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The details of the Dominion’s export and import trading for the year 1933 make interesting reading. They afford both light and shadow in the economic outlook. There is hopefulness in the fact that despite lower prices for her principal exports increased production enabled New Zealand to end the year with revenue from exports at least as good as for the previous year. For although first perusal of the figures may give the impression that exports last year increased by over £4,000,000 as compared with 1932, when the inflation of the local currency is taken into account the sterling value of the two years’ exports was very nearly equal. Those who support the policy of currency inflation claim that as it is the New Zealand pound and not the pound sterling is the currency of the Dominion the primary producers have had the benefit of £4,500,000 larger credits for meeting the local costs of production and other liabilities incurred within the Dominion. They maintain that the benefits of inflation have outweighed the disadvantages. Unfortunately there is another side to the picture. The figures disclose that imports fell last year by another £1,500,000. So long as the high exchange rate continues the recovery in import trade'will not be rapid, and as inflation is bound to raise the cost of local manufactures as well as that of imports its effect upon costs of primary production has yet to be determined. The lowered imports and the increased production enabled the year to end with a very favourable balance of exports over imports, an amount, indeed, greater than is necessary to meet debt obligations, the excess being in New Zealand currency over £15,000,000. But apart from any manipulation of the currency, the hopeful fact remains that in a year of exceedingly low prices the export returns were almost equal to those for the year 1929, when prices were good. The figures confirm the opinions of those who have faith in the future of the Dominion, and who believe that her productiveness has only begun to show its possibilities. It is quite true that the march to financial recovery must still be uphill. It is true also that mere expansion of output will not suffice, that there must be higher standards of quality and greater alertness shown in holding the markets New Zealand possesses and in finding others. Nevertheless, productivity must be the foundation of trade recovery that is to be lasting, and the Dominion’s output last year is convincing evidence of its capabilities in that direction. With expanding exports there arises the question of their disposal oversea. In this regard the almost continuous shrinkage in imports becomes a matter of serious moment. Everywhere the nations are making it clear that sellers must also be buyers, and it appears likely that the rule will be applied to New Zealand’s exports just .as determinedly in Great Britain as in foreign countries, save only as the policy .of Imperial Preference can be made practicable. Even that is based upon the interflow of trade between Britain and the rest of the Empire, and the authorities in the United Kingdom are making it clear that preference will not in future be interpreted as “one way” trading. This year with prices for dairy produce still disappointing the need for increased output is greater than ever. The settlers are responding to the call for greater effort, and climatically the season has been satisfactory for the dairy farmer. All that is to the good, and the determination to improve quality is one that is bearing fruit, though all the problems in the way have not yet been overcome. On the whole, consideration of last year’s trading figures gives good heart for the future.