NEW ZEALAND AND THE SHIPPING SHORTAGE

Dominion, Volume 10, Issue 3010, 22 February 1917, Page 4

NEW ZEALAND AND THE SHIPPING SHORTAGE

A few days ago we received a very plain hint from Mb. Massey of a coming further shortage in the ehipping tonnage available for our overseas traded The cable message conveying the intimation stated that "New Zealand might suffer somewhat through want of tonnago, but there was sufficient available to carry her main products." Yesterday came confirmation through Me. Bohar Law of the intention of the British Government to economise shipping by imposing drastic restrictions on imports which would not only affect Britain but her allies and the overseas Dominions as well. The extent of these restrictions we shall know within the next day or two, and in the meantime we may find some consolation from Me. Massey's announcement and the knowledge that the British Government and our Allies will endeavour to provide the moans of ensuring the regular and rapid transport of the whole of our availablo surplus food supplies. It is not nieroly the shortage of tonnage that is influencing the action of the British Government. There is an economic factor which .has been causing a good deal of uneasiness. Tho volume of British trade continues to be surprisingly largo in spite of submarining and the diversion of shipping from trade to Admiralty purposes; but the balance of imports over exports is at a formidable level. The Economist, discussing tho position in December last, directed attention to tho fact that tho. net import balance for November, 1916, totalled £39,300,000, as against £29,000,000 in October and £27,000,000 in September. A comparison of tho figures for tho eleven months of 1915 and 1916 is as follows: — 1915 1316. Imports ... 782,899,373 873,812,712 90,913,3391n0. Exports ... 350,699,317 466,532,440 115,833J23inc. lte-oxportß 91,095,222 91,675,181 579,959 inc. Import balbaJanco 341,104,834 315,605,091 25,499,743 deo It will be noted that the balance of imports ovor exports is less for the period of 1916 than for tho corresponding period of 1915, this result being achieved in spite of the increase in tho total volume of. imports. Whatever satisfaction this may afford is, however, discounts* by tho fact that it was in the later months of 1916 that the excess of imports was most noticeable, and, as shown by the figures quoted above, October was worse than Septembor, and November was worse than October. The Economist, in summing up the situation, remarked:

If we compare the eleven mouths' totals of 1916 with, thoso of 19U we find an import increase of .£244,559,160, against the export increase of .£62,500,000 'Wβ are almost weary of pointing out tho obvious and nrgont necessity for keeping the_ import 'ponny of which except the portion which is paid for by services of shipping, insurance, etc., has to be liquidated by the export of gold or securities or by credits raised abroad—at the lowest possible figure. The recent warning of the United States Federal Eeservo Board makes that necessity more urgent than ever. ... In tho solution of this problem lies the crux of the financial position. To taokle it boldly ie the first duty of the new Government, and that they should do so Is tho first essential to a strong war policy. To all appearances the new Government is about to act on tho lines here suggested.