A REVIEW OF 1911.

Dominion, Volume 5, Issue 1324, 30 December 1911, Page 8

A REVIEW OF 1911.

FINANCE AND COMMERCE. FACTS, FIGURES, AND FEATURES The year mil ilicl not fullil the prolines which were Icl'l. us :i. legacy Ivy tinprevious year. The oulln.ik at the rlo.-r of t!HO was very good, but owing to a variety of circumstance.-, hut purlieularly political iinrr-1 anil dopri—ion ill America, I null' ami rommei'i'i' were mil as active us llu'.v would ntliiTW'iso have hern. The puliliral ten-ion iliil, lev a. lime, have 11. depressing elVeel. en (lie iiiniiey markets, Iml lorlmialcly the niles were not ;id\ancril. The Money Market. Notwithstanding serious political disturbances (hi! London money market was fairly steady throughout, Hie year ami hank rale varieil between II anil :i per cent. There were nnly four changes in the rale during this year as against nine changes in 1910, iiml (he average rale was substantially lower. The iimveineiils of the hank rate during the year were us under:— Bcr cent. January 1 li .Taiitimy 27 I February 16 .'li March !) 3 September 21 1 The (liiriiliou of each • rate during the year was as. under:— 3 per cent for 191! days. 31 per cent lor 21 „ •1 per cent for 122 „ '11 per cent for 2(1 „

The average rato for the year compared with previous years shows as under:— Bercont. .£ s. d. "Average in 1911 II II ■! Average in Bill) :i It 4 Average in 1!K)!I li 2 0 Average in IHIIS II 0 II - Average in 1907 -1 18 II Average in IDOli I 5 1 Three venrs l!)0!t-U ... 3 8 II I'ive years 1907-11 3 12 10 Tho mite for 1911 was ss. below the average of 1010, and just a. shade above the average of the three years 1909-11. A glance at the averages above will show that following the American financial crisis of 1907 when money was exceptionally dear, the rato .fell away in 1908 when money was cheap and trade dull. .Tho following year busiuess was only slightly better, but in 1910 there was a remarkable improvement. In 19H the ell'eets of tho dullness in America were felt. The situation in America is far from satisfactory and the country appears not to have fully recovered from the crisis of 1907; furthermore the delermined assault on the Trusts by the Government has had something to do with tho dullness in America. Tho Bonk of Franco rate which was fixed at 3 per cent'on January 25, 190S, was in September last raised "to 31- per cent. This somewhat unusual movement was directly duo to tho Franco-German crisis over Morocco. The French Bunk deemed it prudent to niiso its rale and so to impose an additional safeguard tor its gold reserve. Tho Imperial Bank of Germany opened tho year with a 5 per cent rate, which was, reduced to 11 per cent on February h, and to l per cent on February 19. On September 19 tho- rato was; raided to a . per cent. At - ono . period of tue Morocco negotiations when an agreement seemed, unlikely,.French and Russian bankers withdrew ■ their lar«e credits from Germany, which cau«!d great stringency in Berlin, and forced tlie Imperial Bank to raise its rat« Tho Bank of England and the Bank of Franco responded quickly, and raised their rates Call for Capital. .The demand for capital in 1911 ~-as smaller than in tho two previous vear« Ony the figures for nine months to the end ot Seplembor are available, and these show as under:— •

Nine months, 1908 192 203 700 Nine months, 1309 IS2 aic'fiCi) Nine months, 190!) ...,„.,. aifi'.rs&fii) Nine months, 1911 132,3118,300 • There was a very big shrinkage in 1911 and this was inevitable in view of th" extraordinarily heavy demands in the three preceding years. Tho distribution of (ho new capital as disclosed by the "Economist" (London) i= as under:— ' 1010. 1911. ,e vi' United Kingdom ... Bd,S-15,5f10 2° iill .100 • Australasia 7,359,000 8,32fiM0 V a V.!>da ~ ~ ai,sSH,<)CO 22.179 100 India and Ceylon 13,279,100 ■• 5.090X00 boiuh Ainea 3,U0-1,100 ■' 3,980.900 (JLhor British pos-- . r sessions ~ 13,-11)5,500 .1.5-10 500 I'oreign countries... 92,588,200 70,500|5C0 210,755,300 , 132,3113,300 Argentina obtained .£8,355.000, nsa»iinsl .Ml l,o-11,000 in the first nine'monO 1910, Brazil .£13,105,100 os Cuba. .K0,501,300 a "a if .l'l,!)l(i,200, United States. .«9^25"00 as against .£33,002,100. Australasia obtained very little idoudv trom London, as a matter of fact i-hVe were only two loans emitted. Earlv 'in fl a r-ftnnn C l $™ tra *™ a loan'of a.1,0a0,000 at 3.1 per ecnt., with a minimum price of JOB-10,-. This.loan was fully subscribed. On-April 27 the Oueer-;-"Lnnn V TI I 1 I<!Ht MIM a loi ' n ior .12 :000,000 at 3.V per cent., at .£97 10s., and tailed to secure more tlum. 9 per cent, of tho amount from tho public. The underwriters had to take up 91 per cent. * Gilt-edged Securities, .In 1910, when Consols began their persistent downward movement, consteruai-? ;™ s « rcixt «l when the price dropped to .US Vis. Gd„ and yet in 1911 the price went much lower. On July 26 Consols touched f/'n 108- ; ; l , ml nn ■Seiilember 20 J;7G 15s. Vt the latter price the yield fo tho inyeslor is about i' 3 ss. Id. per cent. A. variety of causes have operated to affect the price of Consols. There is no doubt investors are obtaining verv good returns trom securities that are almost as "iltedgsd as Consols; thou there is the dispoiuiou of investing on a geographical basis—that is, spreading one's investments over a number of eoun!\"?ti ? r l 'i tllcl \>- ,astl - v - the f "et tliat UritiMi securities are affected by labour troubles. The strike of transport workers in Augu.J. last ha* wrecked confidence, and it will probably need a period of depression to bring about, a. i-i ul ,i"o in .sentiment. Hard times. compel boib°capitalkts and labourers to think, and'thu ■ iresult is beneSci-al to bot'h. Colonial .Government securities arc not much affected, but then it must bo remembered that they enter into the. geographical basi<! of investment, and furfhermore the States of Australasia have enjoyed a. wonderful amount of property during the past two years, and have, not borrowed very largely'in London.The quotations for gilt-edged securities compare as under-.— | Dec., 1910. Dec, 1911. P.c £ • s. d. £ s . d. 25 Imp. Consols 79 13 0 77 0 0 4 Now South Wales 104 0 0 1(15 0 0 3i New South Wal'ss 93 0 0 98 10 0 3 New South Vales 85 0 0 87 0 0 4 Victorian 101 10 0 101 0 0 3} Victorian 9c 10 0 96 10 0 3 Victorian 84 0 0 64 2 6 35 South Australian 96 10 0 97 0 0 3 South Australian 81. 10 0 &1 10 0 4 Oiieens and 101 10 0 101 10 0 3i.Ouceni.land M 0 0 98 10 0 .] Queensland 83 0 0 a.i ion 4 Now Ken and 103 10 fl ins 0 0 i 5 New Zea and 93 7 f. 96 in n ■\ New Zealand 85 0 n BS Ifl 0 i-\l- Alli i tra ! a V'O " 9'. IP 0 3 \V. Aurfralia 86 10 8 Rfi o C 4 Tasmania 97 10 0 96 10 0 3 Tasmania £6 10 0 85 0 0 Important Failures. The year has been marked by STOIO rather important bank failures The Birkbeck Bank was the first to suspend payment, and this was brought about largely through the depreciation of <ecurilics.' This bank wa.-, eventually reconstructed, and is again in operation The Yorkshire Penny Bank had nmctically to sucriiiiib to a run. but a strong body of financiers re-lormi-d the concern" and it is nov; one of I lie stimigest of snrh inslitiitions in fire it Biitain. Tli" National Petinv sunived a •.luirt run. but the Hunk of Egvpl. and the llank of Burma suspended. The siispen-ii.ii :,f the Bank of Burma was in "juif iiiea-in-e due to the failure of Hie rice crop and the consequent inability of native met', chant! to meet their engagements. The j

failure of Hie iiank nf Iv.M-pt ir;i. I.rouih! ab"iit by Hie reckb'.-s imui:»,<cmi'iil el' m» chief Jk-yptiau i.lliciyl. A',-trikiue; feature .it the failure of this bank is Hie. fact that il came williout the lea-t wnrnins-. Mi) liitle »■;.- Hie real r-tulu of affair* .-u>|Kvtiil in the London market that ;i .lay before its Mi.-prii-inii its shun.'.-, which v.ei'" p.-i.l up lo .SM2 10-., wen; piirchaseil at ,t;22. Subsequently, however. Iraii.-ietions were at" a discountel' .L'|:l, which meant .-ellers paid Ills, (u Hiivniii; willing to accept the liability on the shares. That liability ainiiiinled to ,tl2 HI.-., and this is being railed up in three in-lalmcnt-, and piartirally all the liabilities of the bank are thus being met.

Australasian Finance, At no time during the year can it be said I hill money w;is scarce; en the contrary, funds have been ample to meet till iogitiinilo demands, and the iniere.-t rate has mil materially altered, at the same lime burrowing on the part of the people has been nm.-l marked. Owing lo the decline in the aggregate value of omexports. to which special icfercnca will be. made preseullv, the demands on the banks have been exceptionally heavy. The bankin;,' returns lor the September iiunrler show I hat the advance., at the cln-e id' the third iiuarter nere .1:3,100,152 greater Ihan the figures for the corresponding .|m.rler uf mill, and the discounts were xm.'Ml greater. 'I he advances and discounts for live years show a = under:— Advances. Hiscnunts. ■ Total. Sept. 30 X x X 1907 10,198,032 2.01)0,152 lS,l!IS,l8t UHiS 1S,!II7.!I!II •.'.W.I.iICH 1>1.L'17.!).V.1 l!W!l IIi.MU.SI 1,777,f.!1i 18.1711,707 IIMII ' Ki..'iL'7,(l«l t,1i.'i0..".111i K5,177,r,!11! mil' 111,1W7.L , 12 1.711,117 2l.l:ll,li.-,!l The total for 1:111 is a record, and onceeds the next, liirgct, Ui.il. for (he venr IHIW, by ■.1 , 2i:i,71111. The deposits should shew snuie correspouilin!,' increase, Iml thev do nut, and thai scums to thnl (he advances obtained fioni the banks were mos'ly by traders and were obtained lo ineef paymenls tor iniporled merchandise. The uriiivth of the deposits and advances for live years i.s shown in the table appended-.— Deposits. Advances, Sept. 30 X x ion? ii,tir..'i,nii:i 18.iiis.iki mos :... i!o,:iiii,tirr 2i,'ji;. , .i. , i*i l'JO!) 20.U70.12C1 18,1711,7117 1910 i'l,lll,:il!) 15,177.:i!!1i mil' i 2;i.«J5i,r.2i 21,1:11,1159 The Raii> in the deposit amounts lo slightly more than .CSI'IO.uOO. If we exainine (he trade returns it will be seen that there was a sharp decline in the exports, and a substantial increase in the imports. The figures for the year to September. uO show as under:— Excess of . i Exports. Imports, exports. Year. X X X VM-'i l!l.891,SI(i 1(1,071,887 3,819,959 1907-8 ](i.:1711..i57 17.7.j0,5.")S — 1903-9 18.700,158 H.!H(i.!in.> ,1,78-1,151 1909-10 .... 2l,!l58.!ll!t Iti.IOI.KSI! ri.8,"i7,07S 1910-11 .... 19,91L',051i 18,011,8011 1,300,091) In 190S l|ie imjioi-ts exceeded (lie exports by .L' 1,380.281. The value rf the exports for the live years totals .-£90.831.2119, while the imports uggregutcd 0:83.152,5911, showing an excess of exports of .in:i.33Uii:i, c(|iuil to an average. of .12,1172,322, which is b?low the iimnunt estimated to be payable by Sew Zealand to. foreign, creditors annually. This 'amount is generally placed at".£3,000,000. Tho small margin between exports and imports shown last year will probably result in imports being reduced in 1912, and traders, have been already warned to cut down their indents. The .decrease in the exports i.s mainly duo to (he shrinkage in the volume of our primary products, owing to a dry season, and also to the decline in Ih'o value of" wool. The values of the principal products exported during the past tw6...Veai's-ende;l Septcmljcr 30 is shown in Hie "table appended:— 1910-11. 1909-10. '. £ X Butter 1,030,997 1,721,156 Cheese 1,087,8(12 1,203,005 Beef 332,27-1 S:U,3SO Mutton 1,121,787 1,224,380 Legs and pieces -tS,t!o:2 03,900 Lamb 1,955.7!U 1,800,281 Wheat 303,012 119,959 Oats 22,735 00,710 Potatoes 5,089 3,51-t Heiiin 310.1159 .151,120 Kabbits 70,170 73,915 Tow 2U,IU 29,570 Kauri gum ... 398,357 523,020 Grain and pulse. 91,8'HS 72,8115 . Hops 11.893 19,771 Hides , 108,772 230,777 Skins 7011,095 SBS.O3S Tallow ; 030,331 711,971 'I'imber 471,010 307,510 AVool 7,145,782 7,954.527 ■ Gold 1,813,078 2,000,925

15.471.115' 2n.:J5-t,272 That, money lias been in ample supply •to meet all reasonable demands is further homo out by the mortgages 'registered. The latest available figures arc those to March !il l.v-t; comparing the total for each year from 190-1," we obtain the following:— ' Total 'i car ended ■ Mortgages, March 31. £* 1301' 15,493,552 1995 49,030,811 1000 53.480,090 . 1907 59,007.(170 190S 05,453,010 1009 72.2H-t.ofio 191(1 77,771,721 1911 83,538,(131 The iucreaso in 1911 over the previous year amounts to .£5,761,910. In the past live years no less a sum than .£30,t).")ij,53a has been borrowed on mortgage of real estate. Taking the separate"diatricts (lie aggregates for (ho past two years, compared as under:— 1910. 1911. District. £ £ Auckland 8,592,592 9,853,870 Tnranaki G.32G.953 0,82-'-,](io AVcllington 22,730,057 21,1)1.711! Iluwke's Bay 7,873,700 8,599,010 Poverty Bay 2,111.302 2,300,057 Nelson 1,392,171 1,502,223 Marlborough 1,017,0<1t 1,023,282 Canterbury 17,000,183 ' 17,879,139 Otiigo 1,903,532 5,190,129 Southland 5,491.852 5,872,002 Westland 295,070 ■ 310,910 77,771,721 83,530,031 Wellington Share Market. The demand for investment shares was very steady throughout the year, and prices were well maintained. " It is a question whether too much is not being paid for some of the shares; the viclil upon present prices is very small," but investors appear content. The trouble appears to be that there is practicallv no other outlet for investment monev, 'and good shares, if they are high priced, do yield n return above bank deposit rate. In the tablo appended tho current quotations for tho shares of leading companies nro compared with (he values ruling twelve months ago;— Dec., 1910. Dec, 19il. ■£ i. d X s. d. Bank of N.Z 10 12 li 11 15 0 -National Bank 5 ili 0 5 1? (j N.Z. Insurance i 1 i; .( n a South British 3 3 0 3 9 i; Standard 10 0 1 11 0 National 1 It 6 I 18 0 Well. Gas (=£10) 19 0 0 18 10 0 N.Z. Shipping 11 0-0 11 10 0 Union Steam 1 17 0 2 19 Mosgiel Woollen 3 8 0 3 8 0 Kaiapoi Woollen .... 5 0 0 6 10 0 Well. Woollen (ord.) 3 110 3 1-7 0 Well. Trust and Loan 7 10 0 7 11 0 Equitable. Building 9 15 0 9 15 0 Gear Meat (-Jt-t)' 12 5 0 13 0 0 Meat Export (ia) ... G 10 0 U 5 0 The Mining Market. The mining market exhibited signs of weakening early in the year, am! cuniinucd to weaken until towards the dose (if the year shares were down to their Incest level. Spasmodic efforts were a', various times made to put, life into the market, but the public refused to respond. The speculating brokers so thoroughly crippled the market with their consistent over-selling and bearing of tho market that the public appear to have lo.tt all' confidence, and during the past few months most of tho sales recorded have been transactions between professionals. It is hopeless fa expect the market lo recover until lliere are' returns limn (he mines; furthermore, it: seems mrcssary to improve the management, both at the mine and in the fllliec. It is dillicnll in undcr-Uind why there should not be the same degree of straightforward dealing in the mining' share market a.- (hen; is in (he investment share market, Tho es'povl of gold, which includes, practically ail the gold mined, discloses

:i fi.llinu--.in'. During II." ■■h-veii iiiinillm i'lldi-d .November 30, 1911, llir export-, of geld totalled 122.210 i-rud nee-, vulii.-.l nl. J.'1,087.391. For Ihe - p'linl in 1910 the export was 11U.77S el ude cunee., valued at .!:1,71-V>2l. Ther.i was Ihu. n dc.iease of 18.50'm.z., valin-d iil'.Us\l27. The silver export",! in |ln> eleven months was valued ;,( .i;I2II,927, while far Hie nil're.-| ling peli"d of 1910, Ihe expiirln wen' 1,511.197e/.., valued at .1151.859. There was Hue, a decrease of. 3!1'.1,5'.;!'.iz., valued nl .t;m.»:i::. The geld viel.ls of the- various Slates el the Comluonweallh, and Ihe lliuiiinii.ii, for the eleven nieutb- en.le.l N'.neuiber :m, eonipared will. Ihe figures for the .orie,.pon.ling period of bisl i.ar, show as under:— 1910. I'M I. line n/„ Fine o/.. Victoria 5H.5X1 171.M10 N'.H. Wales ... 178.058 102,250 (Jiii;oii;-!tiiiil ... 395.001 317,972 \V. Au-li'iiliii 1.313.710 1,251,5115 S. \iisti-nlin ... 0.(100 8,8011 Tasmania 41,0011 11,250 ('..nuuonw'h 2.179.511 2.2M1.073 .New Zealand 110,752 397.1131 2,81111,293 2,083,707 The ('oiiiiiionweallh lolal shows a decrease of 192,8380/., and Ihe Nciv Zeal I figures are less by 13,7180/„ London Wool Sales. Shortly before, the close of 1910 a. sudden wave of depression passed over the wool markets. (In the (.'online-ill pri.-es in the futures market fell heavily, whilst in Hradford Ihu value of lops siilVercd a severe decline. In some iiuarlerii Ibis lelapsa was attributed lo lieur but whatever the chum-, it had the elfect of shaking confidence, and the position for a short period was very unfavourable. The market was more or less under Ihe inlliienee of Ihcsn condilbns when the. lii-.-f series opened hiniiaiy 17, hut. forlunalely u slightly healthier lone prevailed, and Ihe decline was much le-s pronounced, Ihe reduction in the most extreme ease was nut more than 15 per cent. .Allogelher, 198,780 bales were available, but 'only 181,023 bales were, catalogued; and of (ho.-e 11,102 bales were withdrawn. Of the 108,000 bales available. 111.000 bales were Hold for Home coiiMiiiipliiin, 00,000 to the Continent, and ■Kllil) In America. The attendance was remarkably well sustained throughout tho sales." Choicest merinos closed at par with the previous sales; medium declined 5 per cent.; fiiulties 10 to 15 per cent.; good scoureds 7V per cent. Crossbrctla weakened during the sales, closing part to 5 per cent, below the December sales; medium 10 to 15 per cent'.; coarse7J to 10 per cent. A larger (juantHy of newclip l\ew Zealand crossbred was offered than in . any first series for many years past, and according to at least oiie report the wool was very disappointing. It was said to be very l'atly in conditi'in, the, staple was lean, generallv shorter grown and often tender. The second series of sales commenced on March 11, and the question that was agitating the trade just before the opening was whether tho market, in spite of the healthy condition of tho wool hade both at Home, and on the. Continent, could bear, without decline, the weight of crossbred wool on hand and to arrive ill the near future. This was practically answered on the first day, and answered satisfactorily. The firmness of prices on the opening day was a welcome omen, and-the sustained .strength of the market for bath merinos and crossbreds during Ihe sale gave warrant for (lie. expectation of sound and healthy conditions for some time to come. . The total quantity available for tho sale was 232,000 bales, ■ of which 110,001) bales were from New Zealand. Of tho. quantity available 37,000 bales were withdrawn and. held over, 120.000 were sold for Home consumption, 72,000 to tho Continent, ■. anil 3000 to America. Crossbred wools- met with a very strong demand from -beginning -to end. The tine, qualities sold without quotable, alteration as compared-with the closing rates of the iirst series, except in the case of well-bred, high-conditioned lots,-which were about 5 per cent, dearer. Medium grades ruled at par to 5 ]>er cent, advance, whilst coarser qualities appreciated fully 5 per cent.—the improvement being most pronounced on lots of good length and lustre. The third series opened on May fl andterminated on May 20. The general conditions of the wool trade, alter the close of the second series continued very healthy, both at Homo and on tho Continent, with a good business passing in. tops and yarns at rather higher rates. Just before the sales commenced the market, presented a. slightly quieter tone; but notwithstanding this, crossbreds exhibited some appreciation on the. March curreucv. About 200,000 bales were available, of which 102,000 were .New Zealand. Uf the quantity avnilalilo 95,000 bales were sold for Home consumption, 70,000 to the Continent, and 2000 lo America, leaving 39,000 bales to be carried forward. The closing rales were rather firmer than those ruling at the lini.sh. of the March series. Greasy crossbreds of fine quality were 3-per cent, lower; medium par. In 5 -pur cent.-lower, co;u;m par tc: 5-per cent, higher, scoured 5 per cent, lower.

The fourth series commenced on July 11 and terminated on July 20. Towards tho middle of Juno a strike occurred among the wool coulters in Bradford, which caused considerable dislocation of business at the time, and although settled before tho opening of the series, it undoubtedly tended fa inlerrunl tho current of favourable influences" which had previously been at work. It: was hoped that buyers ironi the United States would operate at: these sales, and all hough several American buyers were present', the continued uncertainty with regard to the tariff, and the cheapness of (heir domestic wools as compared with colonial wools, tended to check their competition. For this series 175,000 bales were available and ths distributhn was as follows:—Home consumption 90,000 bales, to the Continent 40,090, to America 2000, carried forward 31,000. Prices for greasy crossbred wools were unchanged, whilst scoured crossbreds were from 5 per cent, to 10 per cent, lower, and sliped crossbreds from 5 to 7! per cent, lower.

The Fifth Series commenced on September 20. and terminated on October 10. Since the strike of wool-combers in Bradford in June, the wool trade had to bear the strain of a succession of adverse influences. The dock strikes, railwav. seamen's, and other strikes all tended to bring about a more or less serious dislocation of business, whilst Ihc -political and international complications,, and finally (howar between Italy and Turkev combined fa restrict business with foreign countries. The tension of these accumulated troubles was borne remarkably well, and it was a wonder prices were not affected to a greater extent. About 135.000 bales wero available, of which 20C0 bales went, to America, .lO.Oßn'fa the Continent, and 70,000 retained for home (onsumption. About 20.000 bales wcro carried over. Fine quality greasy cross, breds wcro "t to 10 per "cent, 'lower; medium quality, 5 to 7! per cent, lower; coarse and.scoured crossbreds were 5 per cent. lo\fer.

The Sixth Series opened on November 28 and terminated on December !). Immediately after tho close of the last sales tho Bradford'top market displayed considerable weakuess, futures bei'nij done about a- halfpenny below current spot quotations, and it was frenerallv expected that tho sales would open a shade easier than the closing rates of tho previous series, and while this proved to be the case in rci.ird to somo wools, crossbreds were actually 5 per cent, de.irr-r. As the sales propres'ed the market exhibited firmness, and lots suitable for America sold at extreme rates. Fine and medium qualities of crossbreds and th<c.;e suitable for America were 10 lo 15 nor cent, higher; sliped and scoured crossbreds were . r > per cent, hichcr. About 125.000 bales were available, of which -1000 went lo America, 5-1.000 to the Cjmliuent, 00,090 bales were reiaincd for Dome consumption, and 10.000 bales wero carried fonvari(. Summarisin? the disfribuiiuu of the wool, wo obtain (he following :— Bales. Homo consumption 552.000 Continental 3-IS.OOO American .17,000 . 317,000 Resides the above, which represent merely tin? sales in Tendon, considerable quantities were shipped direct to manufacture r«i.

V-Cll.lllU .1..||„,|,.. ||M||l.« .1.1.1 « .lU.'l.f •■|| l ;:ii;.lM|l I'IMII ■I.l'/.'1.1J |ll f.|l|..tl|l|ll|S ,111,1, laud. lil'Hic showing nil illtli'iiM) ill weight. Thi< s lirinhiiM'.- ii due lo Hi" (net, llml. owing In Ihn ilry summer nf I!IKI :,li,i:k was iir-lnd int., (| M , li.izi,,;; (■iiiii|i;iiiiivi, mill much (Iml. should Imvi) In I'll held fiir l!l|| was exported In mill. Taking Ihr ii lilies shipped during llio twelve mniilhs ended Niivi'iiilii-r 30, Imthe pn.-.l l»o ji'iirii, lln nini|i,iriMiii i;. as und'T: - l!HI 1910 CV.I. l-ivl. Hit'C 'ji;i.mr» 521.251 Miiiimi wi:i,Kiii 92:1,11s 1.1-K-" iiii'l I'i'.-n'.-. :iI,:!K.- ( ii.h.vj j/imh i.iii.'vii.-i 1,010,1 m ■ 2.207,001 2,532.912 There wiim 11 ih'i-ri'ii-i' nr 325,281 cut., ci|inl I" iihniil; H per cciil. Taking tiiu values I hi! position is 11.1 Ullllc];— mil low X X licr-r :«ii,i:i« 0111,297 Mullen 1,115,758 1,107,878 l,"gs and pieces 17.11.VJ 50,985 Lamb I,!l70,ll7 1,811,(103 3,183,357 3,085,823 Tlio shrinkage in value, is £202,100 showing Ihal. prices on Hi', average wcic slighlly heller II in 191(1. II is pica-ing In relied, that, something litis hi'i'ii iluiii.' towards opening up Iresh markets IVir frozen meal, although New Zealand has nut. hi'Mi iliri'ctly concerned in this. In llnly n fooling li-is been obtained I'm' Argentine meat, nnil tlio impurls will incrcu.-,c, but it will In: slowin expanding. In Austria, after rceuring mi opening, the agrarian parly lins suecoded in shutting mil. foreign meal, tor llm privileges accorded Argentina, have been withdrawn. The Swiss (lovcrnmcnl. is said, to hi' favourable lo (he admission id' frozen incnl, mid more ri'cciitly Franco. Inis been won over. The Frci'di market is I In; most linjK'ful one of (liu 101, for huth Australia mid Xcvv Zenlund us tlio French people can afford lo liuv I he host. Not much- hits been heard of.the Ilecf Trust during Ihe year, mid there is now little likelihood of (lie Chicago packers; obtaining a footing in Sew Zealand.

Dairy Produce, Karlv in Iho year it did not seem probable thai dairy produce would command Ilia present high prices. A drought in i-.urope, however, altered the whole, aspect of all-airs and both.butter and cheese are to-day commanding remarkably good prices. 11' the climatic conditions i'n New Zealand permit of an increase which seems unlikely the dairymen of the Dominion should do exceptionally well; even if the <|iianlities shipped are slightly below those of last year the tinam-ia! returns will still be satisfactory. The statistical position for the years 11)11 and I'JIU to November 30, is as under — 1911 1010 wvt. .£ civ I. £, Butter 310,7,-)! 1,583,032 JUli.ffiS 1,760,505 Cheese 120,081 1,150,390 158,150 1,215,085

_ 710,732 2,731,022 805,067 2,981,500 There is a decren.-e this year of 01,355 cwi„ valued at J;250,5(i8. The high prices that have been rulin" and arc now ruling for butter in Great Uritain must be proving very fayour.iblo W he sale of substitutes like margarine mid the danger ahead is thai when values rcmru to the normal it may be difficult to win back those who have become accustomed to (ho substitutes.

Other New Zealand Produce. The export of agricultural products were in the aggregate considerably less than m the previous year, mainly'owin» fi7nr'"YTV ma " * ni P n "'>i f * of oats! 8t.8b5 bushels.. against -181,722 bushels! J here w-as a slight increase in the rnianity.ot wJieat shipped duo.partly to the lower freight rates quoted at one period t> the year. Tho exports of. hemp for the twelve months ended November 30 totalled 10,208 tons as against 20,350 tons "! , ,K V ! OUS •"'■"'• aml tlls decrease of about IOuO tons is insignificant. Millers ot hemp are getting a better grip of (he industry, and with improved machineryiHiii labour-saving appliances : there ' is every promise of an expanded -output.: J.lie, exports of kauri gum have beettless," and the same holds goad with respect to hides, skin?, and tallow, but timber exJiibits a satistaetory increase. ; ''

Prospects for 1912.' _It is difficult to write with anv dcreo ot assurance res-ardin;; the immediate lnture, because, there arc nianv factors and influences which niav at anv time bsconu! dangerous. There'is, for instance, Hie labour unrest. In almost ovcrv country I ho winters are in revolt, and" strikes on a largo scale are bfcomins rather frofluent. Capitalists aro becomiu; verv seiiM.ive, and the labour unrest must inevitably impose n duck, on industrial progress and expansion, and doe; the wheels of commerce. The .high cost of living duo in no small measure to the expanding Budgets of (he nations is lielning fa create unrest, and the high taxation is a bar to enterprise. There arc many things to cause trouble in 191- 1 and yet it is probable that trade and.cominercc will be at their normal level. In New Zealand the prospects will depend upon how matters shane themselves in Great Britain. If trade in the Mother Country is good, and there is industrial activity, we will enjoy a fair measure of prosperity; beyond that, one can s av liollllllg. ' *