DOMINION TRADE

Dominion, Volume 9, Issue 2728, 24 March 1916, Page 3

DOMINION TRADE

PAST YEAR REVIEWED

CONDITIONS IN NEW ZEALAND

POST WAR TRADE

"The year under review is (says the annual report of the Wellington Chamber, of Commerce) tho first complete year 'of trade under r _war condition. So far as New Zealand is concerned it has probably been less adversely affected as the result of the war than any other country. New Zealand's position as a .large producer of wool. and, foodstuffs h'as resulted-in exporters, being in t-hb fortunate position of being able to take advantage of the very high prices ruling for such commodities in Great Britain . and- elsewhere. - The .great activity in ; our export trade has kept our internal trade very much. more buoyant than was anticipated would' be . the "case at the outbreak of the war. New Zealand industries have been busier ,than for; ■ .years, past; such industries as woollen mills, clothing manufacturers, boot ; manufacturers, manufacturing saddlers, and: others'being busily engaged in fulfilling 1 the requirements of the/Defence Department in the fitting out of our Expeditionary Forces. During the past eighteen months trade- in Wellington s - has been good, due, no doubt, to the , condition of our .export trade, to the presence near - Wellington of the large military ■ camps, and to t'he high prices realised by - farmers in districts procuring their supplies through ■ Wellington. Rigid Economy Urged. "So long as the war. lasts,.' possibly, for.i'some time after its. olose, New ZeV land .will continue to obtain high prices for its staple.products; at the same, time New Zealand is spending several millions per annum in equipping its Expeditionary Forces, and this huge expenditure, and that for pensions due to our soldiers and their dependents will-be,a 1 - burden on the community for many years to come. The taxation necessary to meet- these justly incurred obligations will. exist not only during our present' years' of prosperity but during years of | normal .prices,": and during years when prices- for our staples may b'e below normal. What will be the conditions which will obtain during tho decade after the cessation of war' is largely a matter of conjecture, but New Zealand -is a country, with' great'producing capacities—actual and potential —and its export trade has benefited largely as. a result of the: wary_ so. in comparison with . other ■ countries;.; it should be in the position to, tide , over ' any possible period of adverse ■ trade conditions. Thero is, however, one thing,- and one only, which will- enable ' it to do this—rigid economy in our publie expenditure,'and , strict economy;.in the private expenditure of the individual. .;-Now,' during' the ; time; of our comparative ,'vprosperity, '/ . ecoiiomy should be. voluntarily - practised; the - time may' soon come when the community arid'; the individual will from necessity be >'compelled to economise.

Post War Trado. ?'At; no period of the . history of the •British Empire has the matter _ of 'Trade • within. the Empire' come into Buch prominonce as since the outbreak of war; It has become more, apparent to British and colonial statesmen and to communities of Britain and the Dominions that , some comr prehensive. scheme 1 must be evolved by wMch the trade requirements of . the Empire can- be furnished from witjiin the Empire, and so for as is possible* bfc m dependent' of other nations. ' . The .war has brought forcibly home to Britistiers. the extent, to which' tjiey. have permit-, ted German and' Austrian _ manufactures to compete' with, and in some instances, completely supplant their own manufactures both in Britain itself and in British dependencies; it is realised that this state of affairs must not exist in fntlire. In the past in British countries :it has been no-detriment to the Bale of German or Austrian goods that they , should have ibeen (plainly marked 'Made ■ in , Germany,', or 'Made in Austria,''but in:-New -Zealand,, at any rate, public, sentiment will not permit for . many., years. . the previous extensive sale of, the man* factures of these What matters to-day is the prosecution of the war to, aj successful - issue, ' V but afterthe. war will come another great conflict, —the commercial war—and _ it is well that Britain and her Dominions should' have their plans prepared and a- definite -policy decided' on regarding, the basis of future trading between Britain, and her Dominions, preferential'-.and, reciprocal trade within the Empire, the measure of preferential treatment : to be extended to Britain's Allies, the 'extent to which 'favoured nation' treatment shall bo accorded to neutral countries, -the restriction against future trade with present enemy countries,'

and the regulations .under -which foreigners. shall be permitted to.trado within the Empire. Difficult Problems, "The problems involved are full of difficulties. The necessary adjustments will require radical alterations m what has been the settled policy of Britain for- many, years. In New Zealand tile difficulties will not bs so great. ;>> e have not tho complex trade relations that exist in' cider countries; -wo are accustomed to the working of a preferential tariff in favour ot British manufactures; but even for i\ew /pealand the problem is by no means an easy one: 'How, for example, is a consumer to distinguish between British products, .products of our Allies, and products of present enemy countries. Is a system of the marking of such goods as it is possible to mark to be introduced;, or are we to rely on tne declarations of exporters as to origin £ Some convenient working arrangement will, need to be devised whereby ■ the source of origin of imports can -be traced. Or again, to what extent is New 'Zealand to ' give more favoured treatment to, say, products of France and Japan than to those of Jhe United States ? How would such a discrimination react on our own export trade. "At the Conference of Chambers ot Commerce in Now Zealand, _ in August .last, : the : representatives from this Chamber submitted resolutions bearing on some of these matters, ■which were adopted with modifications by the conference, and representations have since been made 'to the National Government with regard to them. "New Zealand has its first step in the direction.' _.of restricting future enemy trade by including in the Finance- Act, passed last session, a pro-i vision, that the Government may, by Order-in-Council. impose a 50 per cent, surtax (over and above existing duties) on imports from present enemy countries. ...

Britain After the War. "It is not difficult to forecast a possible revolution in .industrial and ill manufacturing methods <in Britain after I, the war. The necessity for meeting military • and naval requirements in the manufacture of munitions and articles of all descriptions essential for war purposes' has resulted in manufacturing concerns not only inoreasing their plants, but in many cases modifying their existing plants to manufacture, articles which previously had never- been attempted. The stupendous efforts mado in supplying war requirements must have been highly instructive to'the British manufacturer as an indication of . tho possibilities: of extension in manufacture. They have'shown him possibilities for development and extension in his business which previously he had probably not Whatever tariff restrictions may be built -up against the importation of the manufactures of present enemy countries, the potent factor in industrial circles must be the increased application of scien- ' tific research in the manufacture -of commodities. Extensive development ou -these lines will at least do as much to foster British trade and to enable Britain ;to successfully ■ compete -in world markets as any protection afford. , e_d by tariff regulation's. Tariff restric- , tions will-no''' doubt be introduced,' but . to be successful they must be contem- . poraneous with industrial, development ; progressing on. scientific lines. j

New Zealand Industries. "In New Zealand, too, our industries ,can only be developed 011 ; successful lines by the application of scientific principles and modern methods of manufacture. The Dominion is renowned for the quality of its primary products, but if our staples aro to' continue' to occupy this high' position, nothing must be left undone which will result in . increased production,' in improvement in tho manner in; whith 1 our products-are" presented for market, and in tho development of existing markets and in tho finding of new avenues for trade."