The Timaru Herald TUESDAY, MARCH 22, 1927. THE BALANCE OF TRADE.

Timaru Herald, Volume CXXIII, 22 March 1927, Page 8

The Timaru Herald TUESDAY, MARCH 22, 1927. THE BALANCE OF TRADE.

l‘’or iHe first lime for many mouths, the balance of trade lias swung over in favour of the Dominion. Daring' February, the imports wove valued at £3, 292, 010, compared with £4,290,431 in the correspondingmonth last year; moreover, the value of the Dominions exports, in February, despite the unfavourable market for but ter and the embargo on the importation of potatoes imposed by Australia, li-tailed £*5,015,451, compared with £4,-301,287 last year. In at her words, whereas the trade balance for February, 192fi. showed a credit, in favour of the Dominion of about £40,000, the position has improved so satisfactorily that there was an excess of exports over imports of £1,723,00!) in the same period this year. The figures for February are as under : Febnmrv Fohnmrv - 1927.' 192 ti. r. r Imports . . 292.010 4.290.42.1 Exports . . 5,U15,451 4,441,287 A few weeks ago we suggested that if the- improving' state of I lie Dominion's oversea- trade ( uuid be. maintained the fiscal year closing oil 31st March, might not show an altogether unfavourable trade balance. The figures is.-iied iHo other day dealt with the trade returns foi Febiuary, and as shown above, the trend of trade' is by no means unfavourable to the Dominion. The returns for the first two months of the year reveal a very much more satisfactory state of affairs than has existed for .some months. The figures are :

Jan. & Fob. Jan. ifc Feb. .1929. 192(1. £ £ imports . . 7,202,070 5,951.247 Exports . . 10,220,591 9,209,208 East year, the value of exports, tor the mouths of January and February exceeded the imports by £418,0U0. But the more favourable trade position in February put a new complexion on this year’s returns, and it tan be seen from the official returns quoted above, that tlie balance of trade for January- and Eebruary this year stands in favour of the Dominion by £2,917,000. In view of all the circumstances, this is most gratifying. It is regrettable, of course, that the overseas market, is unfavourable as far as many lines of New Zealand produce is concerned, but it is maintained in well-informed circles that the markets mayshow a considerable improvement in the near future. It is, nevertheless, gratifying- to note ■bat during- February, the value of the- Dominion imports show a shrinkage of a. clear million, while there was a decrease in the value of importations during January and February- of £1,0000,000, whereas in tlie -same period, the value- of the Dominion s exports showed an value of neatly a muliun. Jn short, 1 he* balance or trade lor Ihe period covered by tlie itrst (wo- months of the year is better by nearly two and a hall: millions than it was at. t.boclose of the corresponding period last year. °

'i'llK WHEAT QUESTION. In response to the unofficial deputation which waited on him yesterday, the Prime Minister not cmly promised lie would visit I imam on Tuesday of next week, but bo "are the impression Umt lie is genuinely anxious to confer with those directly or' indirectly interested in wlieatgrowing', ill tile hope 0 | discovering- some way out of the present impasse. 'Mr Coates realises, of course, that lie has been invited to co-operate with the producers in the hope of solving- a, most difficult problem. Unquestionably, every one should be interested in the pi enervation of the -wheat-growing industry, and related commercial and industrial activities. ‘Superficial observers might urge that large wheat-growing- countries, such as Australia, should always have sui-plus wheat supplies readily available to meet the. bread needs of the Dominion. Even if that were so—and it is not—this rich, fertile country dare not so neglect an essential industry as to put it out of business; indeed, the only safe course is Jor the country to grow sufficient wheat each year to provide the stuff of life and other related commodities which come from the milling- process. Happily, and yet for some unhappily, the agriculturalists this year ave gcunered in an abundant harvest and there is a dunu-er over imminent, that the Government may adhere to its decision lo afford no protection to the industry, in view of' the ample supplies available. The man on (he land, howeyer, looks to the authorities to give him a fair deal, in face of the encouraging harvest returns. Hitherto, this year the Government has given the impression of regarding wheat-growing as the ugly duckling-of the country's ag-ii-eultural interests, lnit stem economic' realities force the wheat question into the foreground, and the Government, notwithstanding unfa.voiiru.ble and persistent pressure' from the north, has no alternative hut to face the farmers and get down to fundamental principles. The promise given by the Prime Minister yesterday, that he will meet the so-called “demonstration in force,” and explore all channels which might lead .to a

correct understanding - of the lealities of the question, .should not be ig-norod. It is hoped, however, that every farmer within reasonable distance of Tiniaru will make a point of swelling- the number of -the deputation to the Prime Ministe-r. Not for many years has the need been so grea t and so pressing - . The Prime Minister must be confronted by united representatives of the interests affected, and the ease fully set: out for bis consideration. Surely the men on the land will not fail to realise that the Prime Minister’s promise to visit Timaru to meet i lie. demonstration in force affords the whole- countryside- a- unique opportunity to show by the. numbers present that they mean business and that they are whole-heartedly convinced as to he justice of their requests for he preservation and encorrrag-e----inont of one of tire- Dominion’s essen ti a 1 indtist rie s.