The Bay Of Plenty Beacon Published Tuesdays and Fridays. TUESDAY, OCTOBER 5, 1943 OVERSEAS TRADE RETURNS

Bay of Plenty Beacon, Volume 7, Issue 12, 5 October 1943, Page 4

The Bay Of Plenty Beacon Published Tuesdays and Fridays. TUESDAY, OCTOBER 5, 1943 OVERSEAS TRADE RETURNS

THE change: from an excess of exports, amounting to £22,661,000 in the production year 1941/42, to an excess of imports totalling £470,000 in 1942/43, is so marked that an official explanation may be expected. The production year covers practically a complete season and is regarded as the best basis of comparison of our overseas trade, since both the calendar and the financial years make a summary break in that period. The excess of imports just recorded is the first of the kind reported for many years, and the total adverse movement, about £23,000,000, is exceptional. The analysis of imports published monthly in the Abstract of Statistics covers only a comparatively small proportion of the total, the greater part, at least under present conditions, being among the "commodities not listed." It is evident that very heavy importations must come under the arrangements made with the British and United States Governments, the memorandum of security and the lend-lease agreement respectively. Had that not been the case, then the overseas balances of the Reserve Bank and the trading banks would have reflected the movements, but they have been ex ceptionally steady. The margin between exports and imports in the 12 months ended June 30 last was not large, but there are the financial commitments of the Dominion that have to be met in addition to the provision of finance of overseas purchases'so that had all the imports come: to charge in the usual way our overseas balances must have been affected. The drop of about £2,700,000 in the value of exports was not big when all circumstances are considered. Adverse climatic conditions reduced farm output and other factors that tended to hamper the primary industries were the lafck of sufficient supplies of fertilisers and the difficulty in obtaining labour. It must also be borne in mind that the task of supplying increasing demands nearer home has also had an effect. Exports at £71,302,000 were the second highest on record; it was the jump of imports by £20,400,000 last year that changed the position so radically., But the importance once given to these returns is lessened by the changed conditions affecting both import and export figures. The: imports, for example, probably include arms and military stores of all kinds, while payment probably has already been made for produce still awaiting shipment. There should, however, be some official explanation of the movements, not only here but overseas where the bald report of an excess of imports might create an erroneous impression.