THE TRADE BALANCE.

Timaru Herald, Volume CXXIII, 12 January 1927, Page 8

THE TRADE BALANCE.

Obviously the contraction of spending power within lire Dominion is not only fllie probable cause of unemployment, but is explained hy the fact that compared with the' previous year, the Dominion’s trade balance is on the wrong side of the ledger. The trade returns for the twelve mouths ended November 30, 1926, show that the exports were valued at £46,257,365, as compared with £56,560,233, decrease of £10,302,868. The imports for the twelve months

totalled £50,143,248, against £52,324,472, a. decrease of £2,181,254. This gives a balance as under:

It will thus be seen that the country’s trade balance went in lie wrong- direction by no less than £8,121,000. In 1920, the imports exceeded the exports' by £3,885,853, while in 1925, exports exceeded imports by £4,235,762. Unquestionably, the unfavourable trade' balance is affecting' all classes of business, and the banking- returns for the December quarter, which should be issued in a day or so, arc awaited with no little interest, other official returns have been published, however, revealingheavy _ “casualties” in the economic war during a somewhat similar period covered by the lominion oversea trade returns. There were 58 bankruptcies! registered in Hew Zealand in November last, as compared with 40 in the same month the previous year. Qf the 58 insolvencies recorded in November last, 25 were registered in . the Auckhpul district, and 20 in the Wellington district, while in the South Island there were only 13 bankruptcies, of which nine were registered in the Christchurch district. The figures for each of the eleven months, together with those for the corresponding

mouths of the previous year, are :

An in even sc l of 84 m the number of bankruptcies is equal to 15 per cent. Presumably, the “business mortality’' was heaviest in the second half of ite year. Grouped in districts, the figures campaie, as under:

Of all the districts, only Dunedin shows a decrease: indeed, the notable' soundness of business in the South Island is demonstrated in these returns. The number of bankruptcies in 1925 (the full twelve months) namely 654, although slightly less than the three preceding' years, was remarkably high. The figures for the last five years are the highest since the “eighties,” wl'icii in both 188(5 and 1887 the number exceeded .1000. All the official ret urns dealing with trade and commerce demon .strafe limv completely the destiny of this country reposes in the fortunes of tin* man on the land. Our prosperity is determined by the leturus received for our produce. Hence the country looks! forward with renewed courage to the coming harvest, when it, is hoped good fortune will smile on the Dominion’s agricultural and pudmal activities, and bounteous yields may be garnered in from ■■nd to end of New^Zealand.

n £ im. 3025. Exports . . 46,257, 305 -5(3,500,233 Imports . . 50,143,21 S 52,324,472

1020. 1925 No. No. January ... . JO ;u February . ... 59 19 March ... 07 50 April AS 45 M:tv 55 40 Jain.! -10 o:i July SJ 7-'i August 05 41 September 72 56 October 01 7J November 58 40 Totals 648 564

' 1920. 1925 No. No. Auekbmd ... 274 2711 AVollmgton ... 218 142 Cliri.stclmrcli ... J07 96 Dunedin ... 49 54