H.—44

It is satisfactory to note that, of the total increase in imports of £3,928,804 for the past year, £2,467,050 may be credited to the United Kingdom. The banking returns as at the 31st March, 1926, reflect the Dominion's recent adverse trade balance. Compared with the figures of the previous year there has been a marked decline in free or commercial deposits amounting to £2,594,748, and an increase in advances amounting to no less than £4,554,880. The increase in advances may be considered to reflect the extent to which the banks have, among other commitments, been called upon to finance increased imports, while the amount of deposits is necessarily affected by the reduction in the returns from exports. The figures for the past six years are given hereunder : —

In May, 192f), Great Britain, Australia, and New Zealand readopted the gold standard, and so made possible exchange rates which by their comparative stability have eliminated difficulties previously existing. The reduction of the high rates between London and New Zealand has removed the penalty on exports and the bounty on imports which gave rise to much uncertainty and dissatisfaction in 1924 and early 1925. ISLAND TRADE. Western Samoa. The satisfactory development of Samoan trade during 1924 was again improved on by the figures of 1925. With the exception of the two boom years, 1919 and 1920, the total external trade in 1925 constituted a record. The imports and exports of our mandated territory during each of the past three years were as follows : — Imports. Exports. £ £ 1923 .. .. .. .. 268,881 288,774 1924 .. .. .. .. 274,803 361,418 1925 .. .. .. .. 345,989 378,388 Cocoa and copra constitute practically the whole value of the exports, which in 1925 increased as a result of increased tonnage and prices for copra. This was, however, to some extent ofiset by a substantial fall in the tonnage and value of cocoa-beans exported. New Zealand took in 1925 an increased proportion of Samoa's exports. The Dominion's share, however, is relatively small, totalling only £11,600, and consisting mainly of cocoa-beans. The United Kingdom, Germany, and other Continental countries are the main buyers of Samoan products. The value of the imports into Western Samoa from the main countries concerned were, during 1923-25, as under : —

The Dominion has maintained its position as a leading supplier of Samoan requirements, but there is still apparently considerable room for expansion of our trade in this market. We have lost trade in certain commodities, while there are at the same time opportunities for extended business in many lines now supplied by Australia and the United Kingdom. The Department has drawn the attention of trading interests to these matters, and in several instances appreciable progress is being made in improving the sale of New Zealand productions.

3

Kxcess of As at 31st March, | Deposits. ! Advances. Advances. Deposits. £ £ £ £ 1921 .. .. .. .. 47,155,730 52,446,341 5,290,611 1922 .. .. .. .. 40,360,390 46,491,315 6,130,925 1923 .. .. .. .. 43,465,816 42,521,573 .. 944,243 1924 .. .. .. .. 47,033,293 44,403,524 .. 2,629,769 1925 .. .. .. .. 49,897,228 43,730,262 .. 6,166,966 1926 .. .. .. .. 47,302,480 48,285,142 982,662

ir a * l- New United United | Year. Australia. Zealand . Kingdom. a ££££££ 1923 .. .. .. 98,301 77,782 19,788 62,717 4,938 2,647 1924 .. .. .. 99,448 87,541 25,340 42,582 6,181 7,972 1925 .. .. .. 103,748 91,542 63,885 55,767 12,731 9,060