IMPORTANT FACTOR

Wanganui Chronicle, Volume 71, Issue 261, 3 November 1928, Page 6

IMPORTANT FACTOR

DOMINION'S EXTERNAL TRADE REVIEW OF 1927 “The external trade of this Dominion is an all-important factor in our economic we fare,” states the report of the Department of Industries and Commerce for the year ended April 30 last. The overseas trade of New Zealand is probably greater in proportion to total production than in the case of any other country in the •world which has passed the initial stage of colonisation and primary development. As a consequence of these facts, a very great deal of attention is appropriately given to questions bearing upon our export and import trades.”

A table Setting out, for each of the past six years, the value of the Dominion’s imports, exports, total external trade and trade balance, shows that in 1922 imports total ed £34,826074, increasing each year until 1925 when they totalled £52,456,407. In 1926 they totalled £40,889,563, and in .1927 £44,782,946. Exports in 1922 totalled £42, / 25,949 and aso showed an increase ekch year up till 1925 when they mounted to £55,262.272. In -192 b they were £45,275,575 and in .1927 £48.496,354. The excess of exports in 1922 was £7,899,875 and since then this has been in the neighbourhood of three or four million pounds, except in 1926 when there was an excess of imports to the extent of £4,613,988. Last year the excess of exports was £3,713,408. Banking Returns The banking returns as at March 31, 1928, recorded a marked improvement over the position disclosed by the returns of a year earlier. At March 3J, 1927, advances were in excess of deposits by an amount of no less than £5.271,996. At the end of March in the current year this excess of advances had been changed into an excess of deposits of £3,887,926. In other wonds, the banking position might be said to have shown an improvement during the twelve months of £9,159,922. This substantial improvement in the banking position of course, very largely from the improved state of the Dominion’s export trade during the past twelve months, and from the fact that in May of 1927 the bank rates for overdrafts and for deposits were increased, the minimum ovendraft rate being moved up from 6A per cent, to 7 per cent. Our trade with Canada continues to expand,” continues the report, “and the year’s exports proved to be a record both in volume and value., In last year’s report it was pointed out that there was an increase of just over 100 per cent, in the value of the tnudc, and it is remarkable that for the financial year just past the figures show a further increase of 100 per cent., the comparable values bein<>-1926-27, £1,030,462; 1927-28. £2,065,222. Canada now ranks fourth in importance in her purchase of New Zealand products.” Island Trade New Zealand continues to do a substantial share of the total tilde of Fiji, but by far the greater proportion is represented by imports (mainly raw sugar) from that country. The imports into New Zealand for the year ended December 31, 1927, amounted to £410,039, and the exports to Fiji £124 - 775, the total trade being £534,814, or 16.61 per cent, of the whole external trade of Fiji. The imports by Fiji from New Zealand during the past five years have fluctuated; considerably, as is shown by the following figures; 1923, £104.000; 1924, £128,000; 1925,^£117,000; 1926, £142,000; 1927, £124,775. The exports to New Zea- ! land have fallen off considerably, due chiefly to the fluctuation in the vane and quantity of sugar shipped. .In 1923 the exports amounted to £942,000; in 1924 to £787,000; in 1925 to i £1,024,000; in 1926 to £710,000; in 1927 to £410,039. The value of exports from Samoa into New Zea and in 1927 was £7.(528. The Dominion uses only a small quantity of the classes of goods exported by Samoa and the amount purchased in 1927 was made up chiefly of cocoabeans to the value of £7,443. The imports into the Mandated Territory from New Zealand tota'lcd £89,000 in 1927. The Dominion proper does a substantial trade with the Cook Islands. The following figures show the value of goods purchased during the past four years by the Dominion from those is .'an ds: 1924, £149,676; 1925, £126,465; 1926, £119,407; 1927, £.113,396. The exports from the Dominion to took and Niue Islands amounted in 1924 to £96,757; in 1925 to £80,977; in 1926 to £109,636; in .1927 to £98,669.

The total external trade last year was £254,963. Trade between Cook and Niue Islands and New Zealand in 1927 represented 83 per cent, of the total imports and exports of those islands. The principal items received by the Dominion in 1927 were oranges, £57,000; tomatoes, £.19,000; bananas, £26,000; copra, £5,000. Overseas Markets Dealing -with the question of prospective overseas markets the report states that the continued expansion of production in the Dominion and the increasing need for wider markets for our products is accompanied by a gradual yet appreciable change in the nature and Extent of the production and demand of overseas countries. The United States of America and. certain of the European countries have during the past two decades shown an appreciable change in the character of their exports and imports. In dust ria’ production is generally increasing, and the demand for foodstuff and raw materials in the Northern Hcmi.phere appears likely to cal! for gradually increasing suppies from the more re-, cently developed countries of the world. America and Continental Europe seem likely to offer to New Zealand a greater market than we have found there in past years. z