INCREASE IMPORTS

Bay of Plenty Beacon, Volume 2, Issue 140, 29 March 1940, Page 4

INCREASE IMPORTS

Importers in Auckland have started an agitation for an increase in the imports and this is justifed by the state of the overseas funds. The object of import control was to increase our overseas balances which had been seriously reduced, and the improvement that has occurred in the overseas funds is now substantial. Our exports last year were affected by weather conditions, and the price level low, but the British commandeer has greatly altered the position. For example the exports in January totalled £6,320,000 as compared with £6,211/000 <in January 1939, an increase of about £100,000, while the imports totalled £3,983,000, as compared with £4,783,000 a decrease of about £800,000,. It should be stated' that in the past season the volume of exports was affected by adverse weather conditions and for some part of the season by low prices. It is reasonable to suppose that in the coming season, given reasonable conditions, there will be an increase of production. Reverting to the overseas funds, the position now is that the balance at our credit is about £20,000,000, while in May 1938 it was as low as £7,390,000 and in November 1938, it was £11,290,000. While the total of the funds stood below £15,000.,000. the position could not be regarded as satisfactory for the reason that in addition to the normal interest payments of the Government, this year an additional £2,000,000 sterling has to be paid, and provision has to be made for this. But the funds now amount to about £20,000,000 sterling, which, as a working reserve, us large enough, and therefore the demand for permitting more imports is warranted. We do not believe that the authorities w r ould be justified in abolishing import restrictions because the spending power of the people is on a large scale, and no small amount of the money spent by the people is paid for imported manufactured goods. If imports were not restricted there would, be an. abnormal increase, and overseas funds would again soon diminish. But as things stand now we could with safety increase our 'imports to the value of say £5,000,000 with complete safety. To increase our imports from Britain just now would be an excellent gesture, and would be very helpful to Britain. The British are, as Napoleon said, a nation of shopkeepers, but they are more,, they are world traders, and know the value of export trade. The war is bringing new economic conditions, but war economics <can be handled, and Britain is looking to the post-war period when there will be trade confusion. If Britain can hold her export trade during the war, then she would be in a splendid position to take advanage of any favourable condition that may present itself in the immediate post-war period.