The Timaru Herald TUESDAY, OCTOBER 24, 1933. “ON THE WAY.”

Timaru Herald, Volume CXXXVII, Issue 19628, 24 October 1933, Page 6

The Timaru Herald TUESDAY, OCTOBER 24, 1933. “ON THE WAY.”

Announcing the intention to create a Government market for gold, which is to synchronise with the easing of the gold embargo, President Roosevelt supplemented this arresting decision by boldly asserting “We are on the way.” Obviously the Government of the United States is not likely to permit the recalcitrance of workers or employers to hamper the working out of the recovery plan, in view of all that is at stake in the making or unmaking of the political reputations of all associated with the plan. The decision to tackle the problem of stabilising the dollar will have far-reaching and steadying results. But in spite of uneven exchanges the plan marches on. Some weeks ago, an important executive order was signed by President Roosevelt laying down that all contractors supplying the Government must conform either with the codes of fair competition promulgated for their particular industries or, when there Is no such code, with the terms of the President’s blanket agreement. The decree, the legality of which has been upheld by the AttorneyGeneral, stipulates that when a contractor fails to fulfil his obligations under the terms of his code the Government may cancel his contract, purchase in the open market the undelivered part of the supplies covered by the contract, and hold the contractor and his sureties liable tc> the Government for any excess cost caused by the adoption of this procedure. Although the Executive order was not made retrospective, many large contracts were held up pending the issue of it. This is regarded as the most drastic step yet taken by the Administration in support of the national recovery campaign, as, in view of the public works programme on which Congress has authorised an expenditure of $3,000,000,000 [£600,000,000 at par], Government contracts are at present providing the backbone of the construction, steel, and other key industries. Moreover, the order marked the first occasion on which the President officially sanctioned coercive measures in support of his supposedly “voluntary” blanket agreement. It is freely stated, however, that although enlistments under the emblem of the Blue Eagle are steadily growing, complaints are also increasing that many of those who have signed the President’s blanket agreement and are flaunting the Blue Eagle insignia are evading or ignoring the responsibilities which they have undertaken. Mr James Hodgson, administrator of the campaign for New York, New Jersey, and Connecticut, recently issued' a final warning that stringent measures were about to be taken to put a stop to this flood of violations. Although there is no doubt that in many cases violations are due to misinterpretation of the agreement rather than to a deliberate attempt to evade the obligations it imposes upon those who sign it, the latest reports indicate that a tendency is discernible, particularly in the retail trade, to make capital out of displaying the Blue Eagle without entering into the spirit of the movement which it represents, even if the letter of the President’s agreement is being observed. For it has been found that by a skilful rearrangement of hours worked by employees the terms of the agreement can in fact frequently be fulfilled without either a reduction of hours of business or the employment of additional workers. The President on his part, is leaving no stone unturned in the nation-wide efforts being made to put his recovery policies into successful operation. The campaign is everywhere being pushed energetically forward. The latest line of attack, which aims at overcoming the vagaries of gold in relation to the dollar, is the boldest move to (bite. But the President means business. One morning a squadmn of thirty big Army bombers took off from the Floyd Bennett airport outside New York with a cargo of N.R.A. propaganda and posters, which were consigned for distribution among the principal cities between the Great Lakes and the Gulf of Mexico. The aeroplanes circled over New York before starting on their journey, and demonstrations of welcome were arranged at the various cities which the squadron visited. It is not surprising, in view of the wide sweep of the recovery plan, that the eyes of the world are focused on the gigantic experiment now being conducted in the United States.

THE TRADE BALANCE. One of the most interesting features of the statistical records of the Dominion oversea trading is the decline in the bulk and value of imports ami the substantial increase in the value of exported produce. The favourable balance in the Dominion's oversea trading for nine months is £12,551,01)0. Tliis very line credit on the right side of the ledger provides ample funds to meet New Zealand’s oversea interest payments on national and local body bonds. The latest returns show that it was due to increased shipments of butter and wool and the better prices ruling that put export values last month at

£2,173,054, showing an increase of £660,258 on those for September, 1932. Imports at £2,062,219 were lower by £93,311. The month’s figures compare as follows: Increase 1932. 1933. or dec. £ £ £ Exports .. 1,512,796 2,173,054 660,253 Imports .. 2,155,530 2,062,219 *93,311 •Decrease. The statistical reports issued by the Customs Department point out that a better and fuller comparison of the trend of the Dominion’s oversea trade is afforded by the figures for the nine months to September 30. These show that export values this year are the highest recorded since 1930, and at £31,838,793 show an increase of £3,152,141 over those for the corresponding period of 1932, and of more than £4,500,000 compared with those for the nine months of 1931. On the other side of the ledger is shown one of the effects of the higher exchange, for the value of imports for the nine months of this year is the lowest since the war. At £15,724,264, imports represent a decrease of £1,341,435 compared with those for the corresponding period of last year, and a shrinkage of £3,373,765 compared with the 1931 period.; The records indicate that the values recorded for exports are the declared f.o.b. values in terms of New Zealand currency, while the values recorded for imports are the current domestic values in the countries of export plus 10 per cent. On this basis the balance in terms of New Zealand currency, excluding specie, for the last nine months is £12,551,000 compared with £9,092,000 for the corresponding period of last year, an increase of £3,459,000. The position is shown in the following comparative table: Nine Balance months Exports Imports. In N.Z. to from N.Z. into N.Z. currency Sep. 30. £ £ £ 1933 31,838,793 13,724,364 12,551,000 1932 .. 28,686,652 17,066,699 9,092,000 1981 .. 27,269,124 19,098,039 6,826,000 Although an exact comparison cannot be made on the figures, shown, by reason of the variation in the exchange and other factors, still it is interesting to note that in the following table are shown the recorded values of the exports from and the imports into New Zealand for the first nine months for the last decade:

It may be said at once that although the trade balance is substantially in favour of the Dominion, and because of that happy condition of the country’s overseas trade, New Zealand is able to meet its interest commitments, still the fact remains that trade with oversea countries shows a steady, shrinkage, so much so, that many deep sea cargo steamers are coming out in ballast. Moreover, the heavy shrinkage of importations has badly hit the trade of the principal ports of New Zealand, with the resultant unemployment of thousands of watersiders, thus yielding correspondingly smaller returns going into ihe Consolidated Fund through the Customs, with proportionate losses by liarboard boards from shrinkage of wharfage, etc., on goods handled. The favourable turn that has marked the opening of the exporting season, ought to assist the country back to normal activities in oversea trading, which will not only help the producers to regain their feet, but will, we hope, ease the difficult times that have fallen upon the principal ports of the country because of shrinkage of shipping and import trade.

Nine months Exports from N.Z. Imports Into N.Z. to Sep. 30. £ £ 1924 .. 41,057,208 36,137,756 1925 .. .. 44,191,254 38234,607 1926 .. .. 37,346,920 37,404,368 1927 .. 37,916,688 33,684,039 1926 .. .. 45,668,927 33,041,495 1929 .. .. 45,664,779 36254,414 1930 .. .. 37,131,080 33,3a, 543 1931 .. .. 27,269,124 19,098,029 1932 .. .. 28,686,652 17,065,699 1933 .. .. 31,838,793 15,724264