CHAMBER OF COMMERCE

Waikato Times, Volume 99, Issue 16545, 14 July 1925, Page 6

CHAMBER OF COMMERCE

ANNUAL MEETING

RENEWED INTEREST

A RECORD MEETING

Not for years "has 'such' interest. been displayed in the work of the Hamilton Chamber of Commerce as was shown last night, when over 30 members ' attended the annual meeting. Mr A. M. Bisley (president.) occupied,the chair. In its annual report, [he executive referred to the satisfactory state of the finances. . All outstanding liabilities had been paid, and a small balance had been carried forward to start this year's operations. The report xenfc on to say:—

"A considerable amount of this Chamber's lime has .been spent in discussing the means of developing the .Waikato West Coast steamer service. What we have been aiming at has now been achieved-, and a regular service, commencing with the sailing of the Progress on the 18th of this month from Duncdin to Hamilton direct, has been inaugurated. "Some months ago, members of the Chamber and of the business community, at the invitation of the Hamilton, Auckland and Cambridge Chambers of Commerce, had an opportunity of inspecting Khv- river by taking a very enjoyable ;i> as far as Waiuku, where the pwjujscd Waiuku Canat route ;; was laslpccted. This trip brought home 1.0 rdi, the immense possibilities of commercialising the river 1.0 a greater extent than at present. We would point out that, to say the least, it is a splendid waterway, which' can be most successfully navigated by the type of steamer which the present shipping company aises and is building] The Chamber has'found great difficulty in getting traders in this district to realise the advantage of the. direct southern service. It shows a considerable saving in freight, and it piaces Hamilton on the map as a direct port. Once known as a direct port, Hamilton will become a centre of distribution, and a centre of representation for the manufacturers of the South. As such, our town would grow and prosper increasingly, and we would urge one and all to support this service as much as possible.

Insurance Rates.

"The question of reducing the high rates of insurance which are imposed upon this town has again engaged the attention of the executive of the Chamber on several occasions. So far nothing has been achieved, and Hamilton continues to pay the highest rate in New Zealand, We trust that the new Council will take this matter up energetically with the Borough Council and that the desired reduction will bo brought into force.

Railway Services.

"On the Chamber's representation improved railway facilities have been agreed to by the Department, and many matters relating to railway business have received this Chamber's attention. The alterations which wc ht-pe will be made in the near future should be of assistance to the business people of Hamilton. We should like to take this opportunity of expressing our appreciation to' the railway officials for the courteous manner in which our numerous requests have been received and treated. The Chamber co-operated with the Railway Department re excursions to Rctorua and Waihi Beach from Hamilton. On account of the outbreak of the epidemic of infantile paralysis the Waihi Beach excursion had to be abandoned, but it is hoped that during the coming summer the suggested excursions will be brought into effect.

Borough Valuations,

The new -valuation, as members already know, shows a large increase on the previous valuation in 1920, and as the Chamber considered combined action would be of benefit to the whole community,, it decided to offer its services in assisting objectors to lodge objections.. A large, number of objectors;, have .availed, themselves of this assistance,- and a subcommittee has been appointed who ere giving close attention to this matter. The Stamp'Duties Act and" the Chattels Securities Act received the attention of the Chamber, and representations were made to the Government with desired results in most eases. In spite of the promise made by the Prime Minister (the late Mr W. F. Massey) that dairy, farmers' orders would not be subject to a tax of five shillings, it seems to have slipped Into the Statutes, and during the present sesssion of Parliament wc would urge this Chamber to make fresh representation and get last session's legislation concerning this matter amended.

Dairy industry Amendment Bill.

The Chamber took a leading part In the discussion of this Bill when before the House, and although our .attitude was in sumc cases resented at first, all parties seem now to agree that wc were right in opposing the latter clause of the Bill which lied indefinitely all suppliers who took shares to the company they subscribe to, and was in.fact a restraint on trade. "We would take this opportunity ,of assuring the public, and particularly the dairy farmers, that as a chamber we have only one object, so far a?; they are concerned, and that is tc assist theru in-obtiining the maximum pricc'for their, produce, and also in" securing the maximum output. In all such matters we, endeavour to be impartial to all parties concerned and to express Hie considered opinion of our actual business experience.

Eastsr Carniva',

considerable amount of the Cha*mber's and a sub-committee's lime was take'n up in endeavouring to arrange a carnival or shopping week In Hamilton, with the idea of stimulating trade, in this shopping centre. Unfortunately, the scheme lacked the support of the retail community of the town, and was accordingly dropped.

to the regulations relating to the importation of wheat, flour, bran and pollard, these have bey before this Chamber on several occasions, and our member, Mr ,T. A. Yo'Jrg, has succeeded, as a result of our representation to him; la giving the community considerable assistance in this connection. Other matlers engaging the Chamber's attention have been as follows: —South Sea Exhibition, League of Nations Union, Harnilton-Taupo mail service, local body trading, Railway Department advertising scheme, reduction of railage rates on imported goods ami local rates, inter-Island consignment and reserve scats in the railway. it is with regret that the Committee has to report that, owing to his serious illness, Mr Nelson has been compelled 1o resign his position, after many years' service to this Chamber, and it desires to place on record the thanks of the Chamber for his work and to convey to Mr Nelson its sympathy in his illness. it also desires io thank Mr Butt "for efficiently acting as secretary before Mr Hutcheson's au-

pointment. During the yea.r the rules were amended, and it was decided thai the Chamber be incorporated under the Societies Act. The main alteration is the institution of a council of 15 members, who will meet monthly to transact the business. Every quarter a general meeting ol members will be held, when a report will be presented and matters of general interest will be brought forward for consideration. "In conclusion the committee trusts that the efforts of the Chamber during the coming year will be of benefit to the whole district in general, and to all members in particular."

President's Report

j The president submitted a lengthy report as follows: — j "The Chamber embarks upon a new jtvear with a very much improved financial position. Although wc have only a small credit balance, all liabilities have been paid, so that the anxiety of the incoming council in _.this connection will be very much lightened. lam strongly of the opinion that all'members'of (he Chamber should be asked to devote their first energies towards increasing the membership, and I should recommend in this direction that if finances allow, a special meeting-room should be secured in which all literature of the Chamber could be displayed for the benefit of all members. The Chamber in the course of each year receives a large amount of commercial literature which, for lack of proper housing, is not of the value it might be to members. "The number of members on the roll this year is slightly less than last, the main reason being that a number or non-financial names have been removed from the list. However, a great many business firms are not as yet represented on the Chamber, and do not appear to realise what the Chamber of Commerce has done, is doing, and is willing to do in their interests. This Chamber has been fortunate in securing the services of Mr J. E.> Iluteheson as secretary. Mr Iluteheson came to us with much experience in Chamber of Commerce matters, and has already proved himself a capable, energetic and enthusiastic worker.

"Last year the annual conference of the Associated Chambers was held at Wanganuij and a question introduced by your Chamber re railway freights, in so far as they affect imported goods from port of entry was discussed. On many classes of imported goods on which duty is payable, people residing in country towns such as this are imposed upon behaving to pay what is really a second duty, by way of a high railway tariff. Mr'Seymour ably represented the Chamber at the Wanganui Conference of Chambers, and fully explained the position. -As the railway commissioners were at this time preparing a report upon the New Zealand railways, the Associated Chambers decided to take no action in the meantime, pending their report. The position does not appear to have been altered under the new tariff. I would therefore suggest that immediate representation's be made to the Government, and that the support of other country Chambers be solicited.

Elimination of Public Bodies' Trading.

"A remit relating to this subject was also presented-and heartily supported at the annual conference. Public body trading is ever increasing. Public bodies are relieved of rates, taxes, and other charges, and in all cases- where losses are made they are shared of necessity by those with whom they compete. It does not seem right to me that Hie Public Trust, State Fire, and oilier Government Departments should be able to erect large buildings, leasing same, and not pay any rates to the local bodv in whose district this revenue is drawn. Our remit in this connection was heartily supported, and we understand representation is being made by the several Chambers at the present session of Parliament. "As vou are aware, many classes of leasehold lands afford good securities to trustees, but under the . present Act trustees are barred from making an advance against same. This Chamber forwarded a' remit to the annual conference upon this subject, but ahe remit did not receive the full support of the conference owing to their being a number of leases which are not a safe security, and if this remit is again forwarded I would suggest that the Chamber specify what '.eases it considers safe security for trustees ,to handle.

Immigration.

A scheme relating to immigration was submitted to the conference by Mr Seymour, embodying largely his own suggestions. The remit, however, was not carried. It was, however, pleasing to us to note that the British Empire chambers of commerce h headquarters at London, have since recommended a similar scheme and urge dominions and colonial Governments to bring same into effect. Your Chamber has made repeated representation to the Government and Drainage Department relating to the report, which is pending re the drainage of swamp lands. Local drainage boards realise the importance of this report and arc very anxious to receive same. A Swamp" Development League has been formed. Special rules have been provided, and as soon as this report is presented, the secretary of the League will call all members together and discuss same, and then be in a position to carry on with its work. A remit from this Chamber which met with approval at the Wanganui conference was that relating to the remission of stamp duty on all conveyances and transfers from mortgagor to mortgagee where it is established to the satisfaction of the Commissioner of Stamp Duties that such convenance of transfer is consequent upon the genuine inability of the mortgagor to carry on. -I should urge that this is a matter which this Chamber should endeavour to have brought forward during the present session. Further efforts and representations should be made relating to the following proposals, which this Chamber lias not as yet succeeded in bringing to a successful issue:—(l)Changing of name of Frankton Junction, to Hamilton Junction. (2) Improved accommodation on Frankton Junction Station for passengers. (3) Construction of subway at Frankton Junction, .(•i) Improved twice weekly service from Putaruru to Hamilton.

Hamilton Valuations.

As you are. aware, I he borough was recently valued, and owing to the enormous increase since since the 1020 valuation, your executive has taken the matter up. A large number of objections have been lodged with the Chamber, and we are now formulating our plans of action. A valuation was made recently in the Taranaki district with the result, it is reported, that a reduction of approximately 34 per cent was made. If this is. correct, some steps should be taken in connection with our own district. I realise that the local valuer has his instructions from headquarters, and it seems to me that some representation should be made to the. Valuer General about the mailer. I feel that our Chamber should give Mr

J. A. Young its support in the matter of the appointments of assessors to the Assessment Court. Objectors do not have, any say in the appointment of an assessor on their behalf. I would suggest this as a matter which should receive consideration. The General Outlook.

Dealing with the present aspect and future outlook as they appear at pre-sent-several phases ougnt to be considered by the whole community. At a recent meeting of the. Bank of New Zealand, Mr Watson drew attention to and issued a warning as fol--1 ows:— Mr. William Watson seconded the motion for the adoption of the report. He touched upon the financial resources of the Dominion. When the value of the exports only exceeds that of the imports by a much less amount than that required to meet the interest payable outside the Dominion, it is surely time for sensible and honest persons to pause and consider. In addition to the materials produced, manufactured and used in this Dominion, it must be acknowledged that £40,800,000 is much too high an amount to pay for imports during one year, and there can be no doubt that a very large portion of these imports consists of luxuries, and this, to a considerable extent, from foreign countries, which in the circumstances are not only unnecessary but positively barmful to the future welfare of the country. Possibly bankers, as well as merchants and others, reap temporary benefits from the present swollen trade, but it is surely at the expense of the community if its income does not meet its expenditure. Further, if the high rate of living be allowed to progress, and wages be raised in accordance with it, the production of our exports will become so expensive as to prevent our competing with other countries.

Undue Optimism

In examining matters further, I have noted the following for your consideration. Past experience has taught New Zealand traders a fair degree of caution; but with an increasing population, continual borrowing and spending by Government departments and public bodies, and a run of high values for exports, an atmosphere of prosperity is created, which tends to undue optimism. In such an atmosphere exporters are apt to increase buying limits, and financial houses to be more elastic about advances on current account or against shipments,' while importers can scarcely be blamed if they increase their indents in anticipation of a continuance of good times. All these conditions have been in operation lately, and we have largely ignored the fact that there must be a limit to the purchasing power of the British and Continental buyer. "In regard to Britain especially, we arc inclined to forget that our best customer has to face heavier taxation, higher costs of production, higher transport rates and keener competition, and that the total value of British imports on a 1913 value, has actually decreased from £525,'000,000 in 1913 to £520,000,000 in 1924. All this means an inevitable shrinkage in the purchasing power of Britain, which must eventually react on the prices for the raw material and foodstuffs exported by New Zealand. "As regards our present position, the figures for the 12 months ended March 31, 1925, show a balance of trade in our favour of £-5,950,003, but against this our bill for interest payable overseas is probably not less than £0,000,000 (in 1924 it was £5.06-1,391 j for Government loans and over £500,000" for public body loans): so that. in spite of the extreme prices obtained during the last 12 months for our exports, in reality we have failed to make both ends meet. It is to be regretted that importers, bankers, and credit j houses have not been more alive lo tin 1 position, and especially that the importation of luxury goods 'has been permitted to increase. It is certainly not creditable to the Dominion that, after export values have increased from £25,984,000 in 1914 to £54,771,000 in 1925 (partly through increased production, but much more largely through extraordinarily enhanced prices), the balance of trade should be insufficient lo meet our overseas interest bill.

Caution Needed

"It is evident that, owing to adverse trade conditions in Great Britain the exceptionally high prices for foodstuffs and raw material cannot be indefinitely maintained. Producers, exporters, and importers must be prepared for an early return to more normal conditions, mid if we continue to import for 1025-26 on the same lavish scale as in 1924-25, we shall most certainly invite trouble, just as wc did in 1010-1020. The purchasing power of our own people in our local markets will probably be fairly well mantained for the next six months, but after that time, when the next season's produce begins to come on the British market, we shall not improbably have to face a readjustment of values of exports, which will mean serious trouble unless there is a corresponding reduction in imports, and especially in luxury goods. Your committee therefore recommends all traders to exercise great caution in regard to forward commitments until the prices for our principal exports have become more stable. It cannjt be too strongly emphasised that out of any favourable trade balance of exports over imports an amount of about £(.,000,000 is required to meet interest payable overseas, and that the amount of purchasing power in this country varies exactly with the net balance of its overseas payment—that is to say, with the net balance which remains after interest lias been met. Apart from the question of a favourable trade balance, our purchasing power in Great Britain is usually augmented by borrowing on the British market, and, so long as our loans arc floated for'reproductive purposes and arc wisely regulated, the effect is to stimulate development and production in New Zealand and to benefit British trade by increasing British exports, and thus make an equitable contribution to the prosperity of our best customers.

"These facts, together with the advancing rate of interest in Britain, indicate "that it will become more diflisult to borrow on favourable terms in London in the near future, and that we shall have to depend more upon our own resources, which is another excellent reason for caution. At the same time, the fact of the shrinking balance of trade in Great Britain and the ominous diminution in the balance, of British funds available for investment overseas, should impel us to send all the business wc can to British manufacturers.

First Duty to Britain.

"Apart from all sentiment, we must remember that Britain buys practically everything wc have to sell, that the British Navy protects our trade routes, that the British investor lends us on very favourable terms the money we need 'to develop our country, and so long as British factories and works are on half-time and unemployment in Britain is rife, common sense and common decency demand that we should import as much as we can from Britain, and that, however friendly we may feel towards other nations, we should recognise that our first duty is lo Britain.

"Whether British trade is really as bad as export figures affirm is difficult

to judge. Bank clearings certainly belie this contention, for they constituted a record in 192 i when they amounted to £39,533,000,000, exceeding the boom year of 1920, when they amounted to '£39,018,000,000. Foreign bonds and securities may account for a considerable sum included in the 192 5 clearings, as all classes of foreign securities have been disposed of on the London market owing to the fluctuation of foreign exchange. Many indications go to show that the internal trade of Great Britain is on rather an extensive scale and that the main falling off has been in the export trade. On the other, hand. 7 per cent. or nearly one, million unemployed is a stubborn fact which must cause one to hesitate.

"Although at the present time the financial market and trade conditions arc in a difficult position, there is no reason to be pessimistic about the future, provided we all heed the warnings wheh at present appear and concentrate on steady work for the progress of the district.

"With the end in view your council will, I know, enter upon its duties for the coming year with vigour, and by the end of its term of office the outlook should be considerably improved.

Ideal to bo Aimed At.

"The trade of the whole British Empire should be stimulated by the great Exhibition now re-opened at Wembley. . Nearly all countries exhibiting have similar traditions, ideals, language, history and literature, and cannot fail to have, their interests developed and furthered by concerted action in centralising the distribution of their products and manufactures. The ruling party at Home lends a keen car to all Dominion suggestions re development of trade and resources, while the Dominions should realise the great potentialities possessed byHome trading ports for finding good foreign markets. The ideal to be aimed at is one consistent trade policy for the whole Empire which would abolish many of the present difficulties met with in dealing with countries with different modes of thought and government. "In conclusion I wish to express my sincere thanks lo the members of the Chamber for their'support, to the vice-presidents and executive for the many hours of work on behalf of the Chamber, to Mr Nelson, who has resigned only on account of illness, and to Messrs Butt and Iluteheson for their able assistance as secretaries. I feel conlidcnt that with our new president, vice-presidents and council (he Chamber will grow in strength and influence during the coming year."

Both reports were adopted amid applause.