LARGER SURPLUSES OFEXPORTS NEEDED

Star (Christchurch), Volume XLIV, Issue 144, 19 June 1931, Page 13

LARGER SURPLUSES OFEXPORTS NEEDED

PRODUCTION FIGURES REVIEWED BY BANKER. (Special to the “ Star.”) WELLINGTON, June 19. “It says a great deal for the energy and diligence of the vast majority of the people of New Zealand that, despite the discouragement of low prices for exports, lower purchasing power for manufactures, and high taxation, there has not been much falling off in the national activities as a whole,” said Mr William Watson, chairman of the Bank of New Zealand, in his address at the annual meeting of shareholders to-day. The values of imports and exports for the five years ended on March 31. said Mr Watson, compared as follows : Imports. Exports. £ £ 1927 48.192.670 45.682.338 1928 44,419.357 54,962,031 1929 45,105.865 57,154.343 1930 49,167.914 49,045.817 1931 38.300.507 39,527,784 When the overseas interest on public and municipal debt. calculated to amount to over £5,000,000 per annum, and the invisible payments for services were taken into account, it would be seen how important it was to have larger surpluses of exports. A Cause of Depression. “From these figures,” he continued, “it will be noted that imports from overseas have much decreased as compared with the year 1929-30. This is a commendable feature, as previously more in the nature of luxury goods were imported than the Dominion, taken as a whole, could well afford, and stocks were too extensively carried. Facilities for obtaining goods induced superabundance of retail shops, rendering it difficult for those previously established to make reasonable profits at fair prices, and also encouraging unnecessary buildings and high rents. In consequence several towns were overbuilt, causing aftermaths of depression in these places which will take time to rectify. “Manufactures have been well maintained in goods suitable to the people’s requirements. The general depression has caused less turnover by manufacturing concerns, and consequently less profits and dividends, but no less than that expected from the universal position of affairs.” Production Increased. Owing to market prices for produce averaging lower last year than in the year previous, the quantities of exports compared larger in proportion to values. The comparison of quantities with values for the two financial years was as follows: 12/months ended March, 1930. Value. £ Butter (cwt.) .. 1.599,397 12,022,330 Cheese (cwt) .. 1,618,537 0,180,213 Wool (bales) .. 603,260 10,610,979 Lamb (cwt) 1,948,777 6,901,305 Mutton (cavt) .. 978,959 1.955.370 Fruit (lbs) 40,454,531 553,843 12 months ended March, 1931. Value. £ Butter (cwt) .. 1,841,245 10,513,654 Cheese (cwt) .. 1,875,380 5,964,699 Wool (bales) .. 542,115 5,464,228 Lamb (cwt) .... 2,290,710 7,054,834 Mutton (cwt) .. 1,232,541 2,079,219 Fruit (lbs) .... 50.366.75 S 627,208

Dairy factories had continued to extend their operations and improvements and developments had taken place on many farms. Meat freezing companies were not generally successful during the past year, as the prices paid for live stock were too high at the beginning of the season. Some changes which would avoid overlapping and reduce expenditure had been made, and it was expected that notwithstanding the low prices in Britain, better results would be effected this season. Wool Prices Disappointing. Wool prices had been extremely disappointing—so much' so, that many, who could afford to do so held their clips back from sales or shipment. It was considered that when at the lowest price last summer, wool was much below cost of production. Since then, values had risen, and it was hoped that they may soon return to paj'ing point. Droughts had been severe on the east coast of the North Island, and in many places cattle had to be removed, while sheep and lambs were difficult to fatten. Timber milling had, in the main, been conducted at a loss, owing partly to diminution in building, partly to exchange rates in exporting to Australia, and to the conditions prevailing there, and partly to high costs of production as compared with other countries. The greatly lowered prices, and leaf disease, had rendered flaxmilling nonpayable. The land suitable for flax growth was, however, of the richest grade, and, when properly drained, excellent for dairying, cropping, and fattening, so that its use could be profitably availed of, and this had been done in several large areas. Fruit Exported. The total export of apples from New Zealand during the whole of last season was 1,331,854 cases, while the total exports for the present season are expected to be 1,384,000 cases.