NEW ZEALAND'S TRADE.

Dominion, Volume 5, Issue 1383, 8 March 1912, Page 4

NEW ZEALAND'S TRADE.

The Mercantile Gazette prints in a comparative table the trade figures for 1911, and although they are subject to correction, they are near enough for practical purposes. In any case, when corrected the difference, if any, will not exceed a few thousands either way. The exports and imports for the past four calendar years show as under: — Excess of Exports. Imports. Exports. Year. £ £ £ 1908 ... 10,317,494 17,471,284 — 1909 ... 19,0G1,99fi 15,674,719 3,987,277 1910 ... 22,180,209 17,051,583 5,128,026 1911 ... 19,028,170 19,550,057 - - It will be noted from the above that in the four years, on two occasions, that is in 1908 and 1911 the imports exceeded the exports. In 1908 the excess was £1,153,790, and in 1911 it was £522,187. Excess of imports is not in itself a matter for. condemnation provided the relation of the country to the rest of the world is economically sound. Thus Great Britain has shown a tremendous excess of imports over exports for many many years past, but this is a natural and economically correct feature of British trade, because the United Kingdom is a creditor coun-, try. Instead of 'drawing interest and dividends in coin, which of course would be an impossibility, because there is not the coin available for such a purpose, they are obtained in goods and merchandise, and the imports are, therefore, always greatly in excess of the exports. But New Zealand's p'osition is quite different, New Zealand is a debtor nation, and has to pay a comparatively large sum in interest. The interest on the public debt is about £2,000,000. Then there is the interest on the municipal and Harbour Board debts aggregating about £13,000,000, on which the interest would be not less than £520,000. In addition there is the interest on real estate mortgages. The registered mortgages total about £80,000,000, but probably not more than £30,000,000 is outside capital, and the interest on this, at the moderate rate of <1 per cent, would be £1,200,000. Thus it becomes obvious that out of our exports there must be paid the imports and the interest. There are some minor disbursements which need not be taken into account. The trade position of 1911 expressed in account form would be: — Ur. .£ To imports 19.550,057 To interest 3,720,0110 2:1,270,057 (V. £ liv exports 19,1125,170 Uy debit balance 1.212.157 2.1,270,(157 The year closed with a balance on the wrong side of £-1,2-12,187, and there was nothing brought forward from the previous year lo help to minimise this, unless we take inlo account I lie inuiiey borrowed liv (lie .Stale. The position then is very much as it was at the close of (he year lOOti. Public and ornate ccun-

omy will be forced upon the community, and here we may frankly give credit to Mr. Harold Beauch.vmpj who in his capacity of Chairman of the Bank of New Zealand repeatedly warned the country of the dangers of the situation. In his address to the shareholders last June lie pointed out that the country was over-importing and that a time of stress was hound to follow. Mn. Beauchamp was assailed by the Hon. T. Mackenzie, Minister- for Agriculture, but events _ have proved that the banker was right, and the politician wrong. Is this the reason for the supersession of Mr. Beauchamp by Mr. Nathan on the Board of Directors of the Bank? The Christchurch Press's comment, which is sharper than our own, suggests that there is a general' opinion in the affirmative. Mr. Beauchamp predicted that money would become dearer, and it has become dearer— even the Government has had to pay higher rates on its loans. To add to the difficulties of the present moment there is the coal strike in Great Britain, > which will have the effect of causing a fall in the prices of food products and raw materials, and a rise in the prices of imported goods. The outlook is not promising, and it is directly due to the unpatriotic policy of plunging and thriftlessness pursued by the discredited "Liberal" Administration.