FINANCE.

Dominion, Volume 6, Issue 1691, 6 March 1913, Page 4

FINANCE.

NEW ZEALAND'S POSITION.

SEARCHING QUESTIONS.

BY TRADE COMMISSIONERS.

LOANS AND EXPORTS,

■The financial position of New Zealand was examined under a very strong searchlight by the members of the Trade of Empire Commission, sitting in Wellington, yesterday. Mr. A. E. Mabin, n member of the firm of Levin and Company, and president of (ho Chamber of Commerce, was being qucstionc-d l;y members of the Commission. . . Sir Rider Haggard: You say that New Zealand is not paying its way by several millions per annum. How is this so? Mr. Mabin: Our exports exceed our imports by something over a million. But wc have three millions n year to pay for interest 011 our national debt; probably one million for interest on the debts of local public bodies, and it is very probable also that a great part of our private Indebtedness is due to foreign, corporations. Our interest bill is possibly about five millions in all per year. Sir Rider Haggard: Than you say the country is not paying , its way by four million poululs a year. . Mr. Mabin: That is what the figures for last, year show, and previous years were nearly as bad. Sir Rider Haggard: Then the prosperity of this country is not so high as it is understood' to lie? Mr. Mabin: That is recognised by.tho commercial community. And the Government have recognised it. also by drawing in their horns considerably. Sir Rider Haggard: In fact, the position is not .sound.. Mr. Mabi\: That appears to be the ease. . . Mr. Lorimer: You say the Dominion is not paying its way by toveral millions a year. Ann there is no industry being developed that is likely to bccomc a largo exporting industry? Mr. Mabin: No. ' Mr. Lorimer: Then if yon wish topay your way you must develop the land ? Mr, Mabin : Yes. . Mr. Lorimer: If the country is to bo made solvent yon must increase your exports of wool aiid meet, and all the produets of the land for which you can tind an unlimited market in Great Britain ? Mr. Mabiu: That is so. Sir. Lorimer: I believe that you cannot manufacture more gomls than arc sufficient for lpcal requirements? Mr. Mabin: No. We cannot export manufactures.

Sir Edgar Vincent: You spoke of the danger of increasing imports a corresponding increase in exports. The figures we have are very remarkable. In lilll there was an excess of imports of nearly a million, whereas in previous years' there has lieen an excels of exports of from one and a half to three millions. Your imports went up 2 1 millions, as your exports weiit down three millions. That is extraordinary, surely? Sir Alfred Batsman: Is not that the year of a large loan ? Mr. Mabin: That is every year, sir. (Laughter.) Sir Alfred Bateman (referring to the Year Book):. Ssven millions borrowed in one year! Surely that is not usual?

Sir Edgar Vincent: Oh. they got an> other three millions a week ogo.

Mr. Mabin: Olio wonders what is to happen when we stop borrowing. We must increase our exports.

Sir Edgar Vincent: "Was tli;re anything like failure of crops to account for the drop in lilll? > NoMhnfci'L.kjioweof.