THE COUNTRY'S POSITION

Dominion, Volume 8, Issue 2334, 16 December 1914, Page 7

THE COUNTRY'S POSITION

THROUGH THE WAR STATE OFJPRODUCTION AND TRADE In- close touch witli production and tirade, Mr. J. G.. Wilson, of Bulls; occasionally makea contributions of pub-: lidi interest on these subjects. Mr. .Wilson is president of the New Zealand Farmers' Co-operative Distributing Co., (Ltd., the annual dinner of which was Ibeld yesterday. Mr. Wilson could not attend the funotion, but.he eent a letler in which he said :— "Our meeting, held as it is in the middle of December, is partially in a •new season,' as the farmer's year may he said to begin on October 1, and end on September 80.; Taking that as the season, and looking back, it 1 is a wonderful result that, despite all the drawbacks, the' farmers haye done bo well.. The strike at the beginning of the season very seriously affected our trade, in oommon with trade in general. The farmers, especially dairy fanners, were' threatened with very serious loss owing :to the ill-advised attempt on the part iof certain leaders to force the hands of 'some employers. Fortunately, the •strike failed, and the farmers are to be joongratulated on the stand they took, tone effect on the Home market for 'dairy produce was most marked.. The earlier shipments withheld in. cbnsefquence of the strike' all reached Xon. -don at about the same time, and gave an opportunity to the 'bears' to weaken, prices. Much money was therefore lost. Wool, however,' and meat realised, high prices, and the exports as a whole reached a very high figure—a record, in fact. . . . "The war has now lasted nearly fifteen weeks. Finance and trade were completely upset by this Budden and unexpected war. Fortunately for us, certain Government financial arrangements which had been pending were complated < satisfactorily, and the banks were all in a; sound financial position. 'A financial crisis, which might otherwise have occurred, was thus avoided. iAs time went on and ttie Allies were 'able to hold the Germans in check, and 'then drive them back, more confidence was shown in trading circles, and the ■new season's produce beginning to come In, trade gradually recovered its normal condition. During August and September our trade fell off, and L should not nave bean the least surprised l had our balance-sheet shown a debit instead ,oi ; a substantial credit at the end of the •year." . ' ■

When the new season commenced, Mr. lWilson continued, things were in, a Very uncertain state. It was not mown whether bhe trade routes would be open or not. Delay of our produce would have meant disaster. There was an uncertainty about prices, and questions on this subject could only be answered by time. The prompt action of the Home Government in conneotion with finance end insurance materially helped to restore confidence, and lie combined fleets had been able to keep the seas reasonably open. The dispatch of the transports had curtailed the space available for the export of our produce, but sufficient. accommodation for produce had been arranged for to' enable everything to be got away. Lamb and mutton prices had kept up, though as the season: advanced they were likely to give way a little.: As to wool, merino vhad'jfallen-'rapidly ,; but this would not affect New Zealand much as our clip consisted mostly of crossbred, wool, which, according to latest reports, had'risen s'pef cent. trrfha thei fall in the price of merino ■wool would be serious, and this fact, combined with the drought, made the outlook there not very, favourable. In grain prioes, it had not been too good a season for oats, though wheat had been selling well. From all accounts, New Zealand would be a million or so bushels short of wheat on this. season. We would have enough oats for our own consumption. The cultivation of potatoes had declined somewhat, and this, combined with the wheat shortage, would perhaps cause some trouble. ;

The trade to' Great Britain had- kept up.so well that we,could expect good prices for this season's output. For the time being, employment seemed to be assured, but if the war was not decided within twelve months (and it atwmed to him improbable it would be) prices might fall: Immediately after the war bad times might be expected, ihe huge expenditure on the war would have impoverished the people in their purchasing power. We could not look with any degree of certainty as to, the future, though, when peace ivas restored and .finances straightened out, we would probably experience a period of great prosperity. If wise counsels prevailed, the Empire would, ne had no doubt, he able to replace the wealth.that had been dissipated on munitions of war, human life, and destroyed property. ■■ . L