COMMERCE PROBLEMS

Dominion, Volume 11, Issue 185, 25 April 1918, Page 8

COMMERCE PROBLEMS

♦ WELLINGTON CHAMBER'S ANNUAL MEETING INTERESTING PRESIDENTIAL ADDRESS. Following the usual custom, the annual meeting of the Wellington Chamber of Commerce was held In the Chamber after the partaking of a luncheon at 1 p.m. yesterday. The president (Mr. I l '. W. Manton). who occupied the chair, was supported l>y tlie Prime Minister (tho Bight Hon. W. F. Majssey) and Sir Joseph Ward. Mr. J. P. Luke, M.P., was also present. After the health of the King had been drunk with musical-honours, the presides); said, in reference, U> the annual report (which W|is fnlteji as read):—"The trado figures wjiich are Riven are. those for the year ending September 30 last. A. restriction has been put upon tho pub-1 lication of trado figures, but by the cour. lesy of the Minister ot Customs tho figures for tho year ending September, I!H7, have been included in the report. In normal times the trade figures for years ending September '30 furnish tho best basis for comparison, ns by that dale- all the' season's produce has been flipped and the new season's produce has not commenced to com/, in. Fv>r the past two years tho figures are of little value for comparative purposes, as at September 39 large quantities of produce remained uishippod; indeed, somo of last season's produce has not yet left Now Zealand. With regard to imports, tho landed value in New Zealand is undoubtedly considerably in excess of the figures shown. The ten per cent, allowance to cover transportation charges from the country of export to New Zealand (which is the basis under the Customs Act), must fall very much short of the present actual freight charges. "New Zealand is in the unique position of having the bulk of its exports either purchased Iff the Imperial autho- ; Tities or controlled by the Governments: THfe purchase schemes have been of inestimable value to the Domiiiioii-in fact, they have been tho salvation of the producer and of our commerce. Undoubtedly file key to New Zealand s commercial 'situation is tho shipping problem. As the report points out, New Zen. land is ns far distant geographically from its principal market as it is possible tor a country to be. "Somo months ago I saw a reprint ol some correspondence which our Prime Minister had during hi} last visit to . London with tho Shipping Controller. Mr Massev had learned that it was proposed to divert several steamers with insulated space from the New Zealand trade to other and shorter routes. The arguments seemed to favour th°. Shipping Controller's contentions, and it was grooving to read of the persistent way in which the Prime Minister continued to stress the claims of New Zealand to have these vessels kept available to earrv its produce. As the result of his efforts, eventually some of these .vessels were retained in our trade Duynp-the past three rears no dmiM.the P™" Minuter has often acted similarly., and I am sure that. I am voicing the opinion of rh» Dominion's producing and «"™l w ™ 1 interests in putting on record £eir appreciation of his efforts to have New Zealand nvoduce lifted. (AppUweJ "With regard to the import trade, the position is that there is-extreme difiV cultv in oM lining execution. of orders for 'many lines of merchandise. iNew avenues of supply hay.e bad to be found, and there has pvoliablv been more nlerbnving in New Zealand among s than in any previous year. TV e must consider ourselves extremely fortunate that it has been possible to carry on business with comparatively such little inconvenience during this period ot S "While on the subiect of the import trade I shorld like to publicly, exwess the appreciation of the commercial tommunitv to the official*'of those Departments who are intimately connected w'Hi commerce, particularly the heads of the Customs Department and the officials of the Munitions and Supplies Department who have given great assistance i" the issue of priority certificates. (Heat, hear.) . _ , m Post-War Trade. In the course of his references to postwar trado t'i.e president said-.- The war has brought into prominence the desirability of fostering trade within the Empire. The conviction has been forced on British and colonial statesmen, and on commercial bodies throughout the Umpire, that some comprehensive scheme must be evolved by which the trade requirements of the Empire can be furnished from within the Empire. It is not suggested that there should bo striction in international trading-such a proposal, to my mind, would not only react on ourselves, but Is impossible. What is suggested is that a definite policy should lie formulated regarding the basis of future trading within tlie»Einpire, and with other countries. The problem is 'full of difficulties, though it may not be so difficult of solution in New Zealand ns foi the older countries, where moro complex trade relations exist. In the coming 'commercial war tariff restrictions may be of assistance as a means of defence, 'but the wider offensive will be won by efficiency in manufacture and by improved methods of marketing and distribution.

Department of Commerce and Industries,

"Although the bulk of onr primary products at'present finds a ready market (the crucial question is to obtain shipping accommodation), it has to bo.remembered that in normal times our produce lias to compete in the markets of the world, and nothing should bo left undone which will result in increased production: ill improvement in the manner m which our products are presented for market; in the development of existing markets; and in fostering now markets. I believe that the first necessary step in tins taction is to put the .Department of Commerce and Industries upon a better basis than it is at the present time. Land and Income Taxation.-, "The council of the chamber has interested itself in the land and income taxation proposals which have boon embodied in tfio Budget proposals of the last three years. I want to make it finite clear that the commercial community in any representations it has made to the Minister of Finance has not done so in any spirit of cavilling nt the amount of taxation which the Minister has had to raise, It realises that at this time taxations must of necessity bo heavy. "We are fortunate \o have incomes to be taxed. ■ No system of taxation is likely to be perfect; eTen with the best system, inequalities of some kind will arise. The existing mothod of taxing incomes on a graduated scale has the merit of simplicity—and economy in collection—as income is taxed at the source. "With regard to tho taxation of tho incomes of companies, tho consensus of opinion among the commercial community is that somothing moro might have been done to alleviate the position of shareholders/ The chamber made tho suggestion that a fair return of the capital in a companv should first be taxed nt a Hat rate and that the surplus profits should 1)0 subjeef to graduated taxation. Also that a commilloo of in. quiry should be set up to investigate and mako recommendations. We quite appreciate the position of tho Minister of Finance. His first; consideration must bo to obtain tho revenue, and no doubt he is naturally unwilling to alter radically a system of taxation which experience has shown could be relied on lo furnish tho nccassary revenue. Now Zealand War Loans. "In 95 the president of the chamber for tho year expressed the opinion that New Zealand would he thrown on its own resources for part at least of its loan moneys—and this has been tho position. Tho War Loans of 1916 and 191? wero over-subscribed, and although tho contributions lo the loan which has just closed were a million short it is to bo hoped that tho fact will make those who have not subscribed, or not subscribed as they should havo done, realise their responsibilities. Tho clauses in tho Finance Act of 1917 and 1918 providing for compulsory subscriptions to War Loans have, not unnaturally, bscn the subject of much comment. So far as the business community 13 concerned, it is evident what will happen—business houses ha.vo subscribed and are exaccted to further subscribe to tho loans. The capital so subscribed will not be aralloblo for business developments. A oon«,

eiderable portion of the mor.er raise* will of course be expended in the Jjo " minion, ami the loan affords the bu>l. security and can bo financed against, but. there is a limit to the assistance which, financial institutions are liki-Iv to afford traders for advances on ordinary account, and against War Loan securities, mo trader of moderate means at'any me will probably have to reduce his stocks and restrict his business oneralions. Whatever- the effect, may be, tho paramount duty is to assist by .suuscribing to die utmost of one's means. What is any monetary sacrifice compa.'ed witn tno sacrifice willingly offered by, those who. are risking mid giving their lives tor tnw Empire?" , , ~ - Before formally moving the adoption ot the report, the president referred to tno subject matter of Sir Joseph »< ira * speech at Heretaunga, in which ho halt said that tho time was approaching wheiv. tho towns,of tho North Island would be. linked up by telephone with those of the' South Island. It was something tnat. they ought to bo devoutly thankful tor. One of the most important questions now before tho public was the utilisation ot our water power, and ho hoped to seo tho day when every town aud city would bo supplied. It was most import ant, both from economical and national pom." of view, for on* primary products, iu competing' with those from other countries, to be placed on the market m a most efficient and economical manner. "I honestly believe," said Mr. Manton,. "that this is one of the matters that tho Government'will have to take upyit is, to my mind, as important a question an the revision of the tariff. After the warthere will bo problems (in business thai, will and must concern everyone, and 1 ask you to come forward and assist the. chamber to the best of your ability, to. grapple with them." - Tho president concluded by paying a tribute to Mr. H. 1). Vickery, the secretary of the chamber. In seconding the motion for adoption of the I report, Mr. C. E. Richardson referred to the recent alteration in the constitution of the chamber, by which representatives of firms were invited to attend meetings of the council, and that; the results had fully justified the alteration. He supported Mr. Manton s appeal to the business men to come torward and take an active part in tnobusiness of the chamber, and suggested to the incoming council that it should try to ensure an influx of new blood eacli year, and that after a year of office juembers of the council should not be eligible for re-election for at least another six months. - . The motion was carried. Election of Council. The following were elected members of the council for the ensuing year :-Messrs. F. W. Manton, T. Ballinger, M. Garr, It. E. Sinclair,'J. B. MacEwan W. J. Bndsqn, J. M'Lellan, J. G. Harkness T. 0,. Dawson, J. F. Mills, F. Easey, and S. C. Baron. • ~ Mr. C. P. Powles was re-elected auditor. . . • .