OUR INDUSTRIES.

Star (Christchurch), Issue 5993, 30 July 1887, Page 6

OUR INDUSTRIES.

THE INDUSTRIAL ARTS CONVERSAZIONE. SPEECH OF SIR JULIUS YOGEL. The following ib the address delivered by Sir Julius Yogel at the opening of the Industrial Conversazione in the Tuam street Hall:— Mr President, Ladies and Gentlemen, — I am grateful to you for the opportunity of taking part in the interesting ceremonial of this evening 1 . The purposes o£ the conversazione are designed to appeal not only to the utilitarian instincts of the community, but to its love of music and of art. It may be said, therefore, to combine amusement with instruction. I hope I shall be forgiven if I confine myself to the heavier portion of the subject. I fear lam not the person to whom should have been entrusted the duty I am attempting to discharge. I cannot help feeling that lam a sort of one-horse individual who, on the smallest provocation, mounts his favourite hobby. lam so deeply impressed with the paramount necessity of developing the industries of the Colony, that it is only requisite to bring me within hail of the subject to start me off upon it. I must ask your indulgence, then, if, in the short address I am about to make, I touch only on the industrial portion of the subject, and speak of the conversazione as though its primal purpose were an Industrial Exhibition. So impressed have I been with the opportunity now afforded me, that I have ventured to write down what I have to say rather than trust myself to the risk of unduly trespassing on your good nature. Even as it is, I fear you will think I am encroaching too much on your time. Lest what I have said, about the pleasure afforded by Exhibitions of works of art, may be misunderstood, let me beg of you not to suppose that I fail to recognise that the pursuit of art is an industry. It is not only an industry, but a laborious one, and upon it depends more or less the success of all industries. Art makes the difference between the grotesque productions of the savage and the finished work of civilised men. The great requisites of art are acute powers of observation, an eye gifted with microscopical discernment, a hand dexterously subject to the conceptions of the wielder and inexhaustible industry. Tell me are not these qualities which materially aid all of those who devote themselves to pursuits of industry. It would, in my opinion, Mr President, be difficult to give too much praise to those who, like you and the Committee with | whom you are associated, exert yourselves to promote local industries. The more I look into the subject, the more does it seem to me beyond doubt that the Colony is greatly suffering from the inadequacy ■with which the Colonists supply their own wants. I have prepared a table showing the proportions which agriculture, manufactures, commerce, and transport bear to each other, first throughout the -world, then through Europe as a whole, through the United States, through the United Kingdom, and through New Zealand. The figures are mostly taken from the diagram statistics in "Mulhall's Dictionary," excepting those relating to New Zealand, which have been carefully compiled. Ido not suppose that any of the figures are more than approximately correct, but they are sufficiently accurate to present a startling picture of the economic conditions of the world as a whole, and of some of its principal portions. I shall not read the table, although I will have it printed. <X> I I 1 uS \ w « r< « I 5 » 1 " 000000 a I I qooooo a yj « Si iH Srt I, *g o g> Oif-j-oib i. ■S ° ci o 01 „00000 o rl _ a si » — t- 00 -* p O CIOOtHH 00 d 3 -' i__4 s 5 j».2 2-Joomih © I p S3eBS»§ m I_J - 5 * 13 o5 ■WNCO'M I -^ o a -,o— '-*us ico .Jj S CtftDr-^MCM I CM. . 3 i \ B"S F< !__ O ffl»«N»)O 00 uto <v,,j, -j, I -j fciCOw-s-aiaj oo a> © I r-l 3 a v 1^ o -— — _ • ■»+» HiMoa I o 1 ■a p^ fl otcooj I o o o L_ ::: : : : > . I •*■ JJ 0010 m n 2 3 eaSJsSSS g 3 is n'nci o" :::::: * I I .... o :::: : ::: | : | ■11 1 s *m I will make now only some references to it. I may explain that mining is included in manufacturing; that transport includes sea carriage as well as carriage by railway and vehicles; that agriculture includes not only the products exported, but those consumed in the Colony, and that commerce includes exports and imports. The following are the figures for New Zealand : — Agriculture is represented at .£10,830,000, manufactures at .£7,436,000, commerce at JE13,431,000, and transport at .£1,750,000. Agriculture thus represents 32-3 per cent, manufactures 223, commerce, 4O'l, and transport 5"3 per cent respectively. When you read, as I hope you will, the table, and study it, you will ; ccc that these figures show a remarkably small percentage of manufactures, and an equally remarkably large proportion of commerce, as compared with the similar relative figures in other parts of the world. No one who studies the figures will have any difficulty in diagnosing the malady under which the Colony laboura — too much commerce, too little manufacture, or, in convertible terms, too much working for other countries, too little working for itself. I find, on comparing New Zealand manufactures with those of Canada, eliminating from each the mining receipts, that the products of manufacturing represent in Canada JEI4 6s per head of population, and in New Zealand only ill 9s. This speaks for itself. . One of the great excuses adopted by those who run down local industries, is that the rate of wages is too high to admit of their being successful. This is a fallacy, which, figures again- disprove. I find that in the United States the cost of labour relatively to pio<

duction is about 20 per cent. I cannot find the figures of Great Britain, but they would presumably show a less ratio, unlesß labour-saving machinery in America has more than counterbalanced low rates of wages in Great Britain. Supposing we take the United States standard, and assume that wage 3 here are 60 per cent higher, the extra cost added to the production would only amount to 12 per cent, as anyone may easily prove by adding 60 per cent to .£2O, and finding that the result would be an addition of i>l2 to the cost of JBIOO. The largest industry in the country at present is unquestionably that relating to sheep. From 1869 to 1886, wool, sheepskins, and frozen meat constituted M per cent in value of all exports from the Colony. In 1869 it was 33 per cent, in 1886 it was 55 per cent, in 187S 67 per cent. Since then it has only once been below 50 per cent. The average of the value of Canterhury wool to the whole wool export from 1869 to 1886 inclusive is 27-1 per cent, in 1886 it was 31-4. Wellington and Napier have made the moßt progress. They exported in 1869 15-6 per cent of the value of the -whole wool exported; in 1886 they contributed 33 per cent, and they averaged over the period 39.3 per cent. It is evident from these figures that the products of the sheep constitute the largest industry at present of the Colony. ' It has to be borne in mind, however, that there may be large industries in the country without reference to supplying other markets; and this seems to me to ba the object which has most to be kept in view. If the various countries of the world persist, as they do, in shutting out foreign imports by heavy duties, it stands to reason that the largest function open to new industries is that of supplying our own market, and thus to avoid the necessity of sending money away to purchase the commodities of other countries. Nevertheless we may hope to send our productions to all parts of the world. There are countries where manufacturing makes no progress to which we might be able to send our surplus goods, after sufficiently supplying the local demand. Ido not think there is sufficient appreciation of the general practice of exporting commodities far below the price at which they are supplied to local consumers. It may seem almost incredible, but I believe it can be Bhown that it frequently pays the manufacturer to export goods for 50 per cent le3s than he supplies the home demand. The result is brought about by reason of the cheapness with which, as a general rule, large quantities can be made of any article in comparison with the manufacture of a smaller number. I will give you an example of a fanciful kind, but not of an exaggerated nature. Let us suppose that a manufacturer can make 5000 articles of a particular character at £1 each. It would not be at all unlikely that he could make 10,000 of the same article at 15s each. In each case I am naming an amount that would carry profit with it. It follows that if he supplied the 5000 articles at .£1 each to the local market he would make 53 each more than he would if he had only made that quantity, and he would therefore be able to sell the other 5000 at 103 each, and yet reap as large a profit, as the original 5000 at a pound each would have yielded to him. In other words, he could afford to export the other 5000 at half the cost, and if he sent them away at 12s each. his profit on the whole transaction would be larger than on the manufacture of 5000 at a pound. There are two particular industries to which I should like to call your attention. The first is sugar. In ths year 1870, the Provincial Council of Canterbury appointed a Select Committee to enquire into the manufacture of beet-root sugar. Sir John Hall was Chairman, and. under date Nov. 14 of that year he reported: — "There is no doubt whatever that the climate and soil of this Province are admirably adopted to the growth of sugar beet." The report went on to say that the difficulty was want of capital, and recommended that a bonus should be offered. Beet has frequently been tested in the Colony, and results have been obtained generally of from 4 to 9 per cent. An instance of one yield of 17^ per cent is stated from Rangitikei, and one of IS per cent from Ashburton. There is no doubt that Otago and Canterbury are eminently suited to the growth of beet, and the same is said to be the case with the Waikato, but in that district the sorghum also would flourish, and it is probably a more valuable sugar plant than the beet. The sugar bill of the Colony has amounted, since Sir John Hall made the report to which I have referred, to little less than eight millions sterling. During the eeven years ISBO-S6 inclusive it amounted to I go firmly believe in the necessity of establishing local industries that I am strongly of opinion that the present low rate of sugar should not stand in the way of investigation being made as to whether or not it is possible, by producing sugar in the Colony, to save the immense sums which are sent away for sugar raised by little better than slave labour. The other industry to which I wish to call your attention is that of cotton manufacturing. There is not a cotton factory in the whole of Australia or New Zealand as far as I am aware. In Canada there are seventeen cotton factories. The results Bhown there are of an extraordinary nature. By increasing the rates of duty in 1878, the cotton products rose from JJ230,000 to .£BBO,OOO, the wages paid from .£55,000 to .£189,000, being an increase during the short period of 230 per cent on the number of hands employed, 243 per cent on the amount of wages paid, and 282 per cent on the products. I am compelled to be very brief in my remarks on the subject, and therefore I will content myself with the following short extract from a speech of the Premier of Canada, the Eight Honourable Sir John M'Donald:— " When we commenced to tax cotton and woollen goods, we were assured that the consumer would be ruined and driven out of the country by high prices. What has been the result ? Our manufacturers of cotton and cloth are in a position of increasing prosperity, and to-day the consnmer is able to buy his goods more cheaply than when Canada was upon a Freetrade basis." There is only one other specific reference I will make to manufactures, and that is to the importance of encouraging home industries. There are thousands of things which, without difficulty, and really with amusement, can be made at home by members of a family of all ages. It is astonishing with how little exertion the population of the Colony could, in leisure hours, manufacture articles of all descriptions worth in the aggregate half a million of money yearly. I refer to this, Mr President, because home industries are one of the branches of industry which I know have your sympathy. In conclusion, let me say that I am inclined to modify the opinion which I held three years since, that it was desirable to hold yearly Colonial Exhibitions of tho industries of the Colony in the various centres of the population. I still think the Exhibition of 1885 answered a good purpose, and that it may be desirable occasionally, after a term of years, to hold a similar Exhibition. But, knowing the cost of the Exhibition, and seeing what may be done by individual efforts at various centres, I am inclined to think that it would be pre'erable, instead of an ambitious Colonial Exhibition, to encourage local Exhibitions of the present character in various parts of the Colony. In short, I incline to think there should be yearly Exhibitiona under the charge of the Industrial Associations, of a character allied to the Exhibitions of the Agricultural and Pastoral Associations, from which incontestably large benefits have arisen. If annual Exhibitions of this kind were held, small prizes and other encouragement might be given, and the Government, if it were able to render assistance, would be able to do so at a much less cost than was entailed by the Industrial Exhibition of 1885. What I see tonight, and ,the experience gained at such exhibitions as have been held here, in Auckland, Wanganui, and elsewhere, lead me to conclude that most attractive collections can be got together at very small cost. I heartily congratulate you, Mr President, on the excellent exhibition ■which we are this evening inaugurating. I feel that the whole community owe to you - a debt of. deep gratitude, for there is no ser-

vice more urgently required than that of promoting the development of the resources of the Colony. You are building up on a broad basis an institution which will endure to do its founders Honour for generations to come. I have much pleasure in declaring the conversazione open.