DOMINION'S TRADE

Dominion, Volume 10, Issue 3059, 21 April 1917, Page 6

DOMINION'S TRADE

GOVERNMENT CONTROL OF EXPORTS CHAMBER OP COMMERCE REVIEW New Zealand has seen (says the annual report of tho Wellington Chamber of Commerce) a second year of trade under war conditions. The exports for 1915-16 show an increase in value of more than £11,000,000 over the pre-war year 1913-14. The greater proportion of this increase is due almost entirely to increased prices. Frozen meat and cheese, however, show considerable increases in quantities exported. The outstanding feature in the export trade has undoubtedly been the exercise of Government control over many of our primary products. Frozen meat was tho first commodity commandeered by tho Imperial authorities, while during the year negotiations were concluded by which the wool clip was purchased on behalf of the Imperial Government. Later, arrangements wero made for the purchase of cheese, and this was followed by tho Government assuming control for the purchase' of sheepskins and hides. Early in the war period, arrangements were made or the Government to purchase scheelite and to finance kauri gum purchases. Thcso transactions wore all the subject of protracted and involved negotiations between the Government, producers, and exporters. Tho volume of business was so enormous, that the Government found it was imperative to uso the ordinary mercantile channels for handling the exports which it was purchasing ou behalf of the Imperial authorities, or otherwise controlling, and it is believed that the many conferences held resulted in equitable arrangements being made which were satisfactory to tho various parties concerned. The practical effect of the Government control is that the element of speculation ha.s disappeared from the marketing of our products; many of the export houses have become, in effect, Government agents to handle the merchandise qii its behalf, while the onus- of obtaining transport facilities is on tho Government as purchaser. "In Wellington the prosperous state of the export trade has been reflected on our internal trade. All articles of import show considerable advance in price j importers have had to exercise extreme care in purchasing, and thoro is a distinct disinclination against over-stocking. v "Prices in the retail trade have naturally hardened perceptibly, but business is reported to bo good, notwithstanding that many well-known articles are in short supply, while iu other cases stock articles of British manufacture have had to bo replaced by articles purchased elsewhere Most of tlie local industries continue to be busily engaged'in fulfilling contracts for defence supplies. The Board of Trade set up under the Cost of Living Act, 1914, has been active during the year in investigating mattors concerned with tho cost of Jiving, and as a result of those inquiries; the Government has regulated the prices of several food commodities. Maximum prices have been fixed for wheat, butter, sugar, milk, and meat. Last year saw the successful flotation< of New Zealand's first War Loan, and it is hoped that the -further War Loan which tho Minister of Finance has intimated will be offered for subscription in the' Dominion will ho equally successful. Personal Economy. "In its last report, the council urged that it was time that economy was voluntarily practised in Now Zealand, and expressed the opinion that the tituo would soon come when the community and the individual would from necessity be compelled to economise. There can be no doubt that tho time is now very near when the latter contingency will be put into practice. Now Zealand is occupying a dual capacity in this war —each mouth it is sending Reinforcements to tho firing-line, while it is assisting in supplying foodstuffs and essential raw materials. In a few months it is anticipated that the 'First Division, comprising the single men eligible for service, will be exhausted, iwheu it will possibly be necessary to call upon tho Second Division. If the war is much further prolonged, and the Dominion oontinues to send its quota of Reinforcements, it is lnovitablo that there will be a serious falling-off in our producing capacity. Now Zealand is far removed from the seat of the war, and its 'war prosperity' has deferred the organisation of its resources. The Government, realising the position, in February set up a National Efficiency Board. Tho board is established 'with a viow to enable the Government to make provisiqn for the organisation aud development of indusr tries, for tho enforcement of public and private economy, and generally for increasing national efficiency.- Its functions are- (inter alia) to inquire what industries aud occupations in New Zealand nro esential to public welfare, and what not; what should be done to secure greater economy and efficiency in them ; to what extent it is necessary to retain in their civil occupations men otherwise liable for military service, and the advisability of employing women in suitable industries and occupations. Very wide powers have been conferred upon the board, and it is generally agreed that its porsonnel is of such a nature that the best results can be expected from it. • . "Ono of tho first acts of this board has been to appoint in tho various districts local boards of trustees to assist iu the working of farms where the owners or the employees have boon called up for military service, to obviate the possibility of a serious reduction iu the production of our primary products. The Minister in Charge of Munitions and Supplies has, under the Coal Trade Regulations, been given extensive powers to regulate tho co«i industry. For months past there has been a shortage of coal in New Zealand, and this shortage is likely to continue during the coming year. The Government has, therefore, deemed it advisable to take drastic steps towards seeing that the essential industries of the country are kept supplied with coal, and it seems certain that in the near future the , coal shortage will necessitate restriction not only in public, services, but in non-essential industries and undertakings."