The Dominion "FRIDAY, MARCH 24, 1916. OUR PROSPERITY

Dominion, Volume 9, Issue 2728, 24 March 1916, Page 4

The Dominion "FRIDAY, MARCH 24, 1916. OUR PROSPERITY

The remarkable figure's showing the Dominion's trade "during the past year, which are set out in the annual report of the Council of the Chamber of Commerce, published in this issue, indicate clearly enough how tho war is affecting us from the point of view of our overseas trading. The fact known to all of us, that tho war has proved a source of immediate financial profit to New Zealand, is plainly demonstrated. The exports of the country constitute a record iu point of value reaching a total of nearly £30,000,000, and exceeding the value 'of the imports by nearly £10,000,000. This is the margin to credit on our overseas trading transactions for , the twelve months. Small wonder is it that money is plentiful, and that, 'generally speaking, there is an atmosphere of, prosperity throughout the land, in spite of the war and its burdens. It is those, engaged in; and those associated with the business side of farming pursuits, who have benefited most, and' this has bsen mainly due to the good season and to' the high prices ruling abroad for foodstuffs, and for wool. The volume of our exports has increased, but 'the chief factor - in swelling the figures for the past calendar year has been the high prices ruling. The fall in tho, imports for the Y.ear, which has assisted to widen the margin between what we have sold abroad and what we have 4 bougbt abroad, has~not" been entirely of our own willing. In the-earlier stages of the war no doubt many people displayed considerable caution in the matter of incurring expenditure, and economy , was practised in many directions. But more recently the difficulty of securing freights has been a factor in reducing the volume of our imports, and indeed is one of the greatest of the immediate problems ahead. There is a marked shortage of vessels both for outward and inward cargoes, and no means of overcoming this menace to our trading prosperity is in sight. The large number of boats diverted from their ordinary trading employment to purposes associated with the war. coupled with the losses sustained from submarine attacks and from mines,, has created .a situation full of embarrassments, and costly as well. Not only is it difficult to secure steamer space for inward and outward cargoes, 'but freight charges have soared to extravagant heights. Our importers who purchase their goods from overseas find the priecs . increased—enormously increased in many cases —by causes arising out of the war, ancl tho cost of getting tho goods hero is proportionally, still heavier. So it is that while wo are getting much higher • prices* for' the goods we export we are, paying much higher priccs than in normal times for the goods wc buy abroad. When the latter fact is taken into account, it will be seen that the volume of <mr imports < must have shrunk very materially, for in spite of the increase in prices there is, as stated; a falling-off in the total value of our imports for the year. So far as the current year's outlook is concerned, a continuance of prevailing conditions may be generally looked for while the war continues. The chief danger ahead lies in the shortage of - cargo vessels. For the first two months of the year overseas trade has been rather .better, in value at least, than in the corresponding month of the previous year. The imports, indeed, show an increase .of nearly £1,000,000 in value, 'due largely to the highdr cost of the goods imported. This.may be a si£n of increased confidence amongst importers or amongst the purchasing public, arising out of the manner in wbich the Dominion' has so far prospered commercially under, war conditions. It is signi- ] Scant, for instance, that in the current issue of the New Zealand Trade Review, the.statement appears that whereas in January-February 1915, the number of motor : cars imported was 430, in the corresponding months of this year the number was 940. This_ increase may bo accounted for by ■ circumstances apart from the demand for motor-pars, but it is a striking one at a time like the present. While .wc may justly feel well satisfied with the figures of vthe past year's trade, it would be foolish to lose sight of the fact that'the country has heavy financial burdens to meet, and that they must' go on increasing with each month that tho war continues. Our prosperity should not lead us into extravagance, but rather should encourage us to conserve our Resources so as to ensure that with the increasing burden of the war wc shall be as capable as ever of carrying' our full share, and, if necessary, more than our share. -