THE COUNTRY'S TRADE

Dominion, Volume 12, Issue 194, 12 May 1919, Page 5

THE COUNTRY'S TRADE

CHAMBER OF COMMERCE

REVIEW

A YEAR OF DIFFICULTY

WELLINGTON THE FIRST PORT

. The production and trade of tho coun- ■' "3! aT e revealed with customary care and ■. thoroughness in the annual report of the •Wellington Chamber of Commerce. Follcnriug is the section of tho report :— ■■ # The values for the total exports and imports for the past six years compare ■es follow:— ~

'•■'■■•■,• Excess Exports..' Imports, (exporte). Year. £. £ £ '1912-13 ■...„. 23,682,416 22;&8,3M 814,062 1913-14. 23,759,347 ' 21,056,381 2,702.965 ' 1914-15 .„_ 29,710,434 19,786,224 9,924,210. 1915-16 ,' ...... 34,926,541 23,791,152 • 1U35.339 . 1916-17* ■ ...... 29,834,726 21,355,680 8,479,046 1917-18* ....:... 28,825,059 24,278,377 4,646.682 ."Tie figures ■ for -1916-17 and 1917-13 do ; not - inolude gold or gold specie—particulars of whioK are not available. . The figures given are for years ended September SO. In normal times and until. 1915 the figures for "exports" represented/ approximately,;.the total value of the produce exported for each "produce" year. In normal times October shipments are of new season's-produce, ' but. sinoe. 1915 there have been large ([uantities of previous season's produce in store in October awaiting shipment. Imports. The comparatijß. values of imports to ports, .'1914-15. to 1917-18, we as tollow:— ' . . 1917-18. 1916-17. 1915-16. 1914-15. Ports. ' £ ; £ . £ £ Nth. Island: Auokland 7,160,356' 6,406,881 7,048,837 5,973,718 .Welling'n 8,317,739 6,818,777 7,674,678 6,601,255 Other N.I. ■ • ■ ■ ■. '. ports 1,072,765 1,123,898 1,257,396 1,220,441 :Bth. Island: . Lyttelton 3,852,122 3,333.451 3,789,086 3,146,376 : Dunedin 2,886,058 2,654,911 2,842,106 2,361,222 ■Other Si. ports 988,937 1,017,762 1,179,W9 1,283.312 Total North . : . Island 16,551,360 14,349,556 15,980,911 12,995,414 Total South ■ *" Island 7,727,017 7,006,124 7,810,241 6,790,810 . alfports 63,150 305,635 1,285,975 1,033,768 Total Do- '■.'•■■'.■ minion 24,341,527 21,661,315 25,077,127.20,819,992 'Totalapart' .'■..■ .-.'"- specie 24,278,377 21,355,680 23,791,15219,786,224 . . Trade of Wellington. The values of the chief exports from the Wellington Customs district are. set out in the following table:— . 1917-18. 1916-17. 1915-16. 1914-16. Goods. £ £ ■ . ■ £ £ Wool and . . ... > skins'". 1,891,218 3,353,291 4,093,966 3,038,555 Frozen ■ ' . meat ... 997,066 1,243421 1,422,124 1,853,038 Butter.and ~■..'. cheese.„ 526,682 ,645,821 ." 460,881- 453,660 ■Tallow :..' 106,941 141,210 195,204 231,302 Hemp ... .927,755 767,037 643556 354,027 Other N.Z. ' prodnce 763.7 M 693,926 960,857 957,640 Total N.Z. ■ ' ••' ' ■ ' '" produce 6,214,186 6,834,406 7,776,{68 6,868,212 .Ee-exports 168,982 123,447 91,506 87,967 . Specie ... 4,000 . - . 39,769 ■ 12,870 Total . ... 5,387,168 6,957,853 7,908,143 6;969,049 The trade for the four, chief iporte of the Dominion showing exporte and imports .exclusive of specie and Customs revenue for the past nine years ended September 30, arranged in triennial perioda, is;— EXPORTS. .';.>■ ' . Fel- ■ Auok- Lyttel- . lington. land. • ton. Dunedin, .Years. £ ' £ £ £ 1909-12... 12,868,950 10,537,415 8,832,866 4,468,479 1913-15 ... 19,174,046 9,760,777 6,010,265 ■1915-18... 20,209,395. 17,633,040 10,799,277- e>^9ol .■ ':■.■':.; imports. . -•■■'"■ . Wet. Aucfc'.'Lyttel- ..../.,;. Hngton.„., land..; ton.'.Dunedin. Years.. .. £. £ , £■ £ . 1909-12:.., 14,322,079 15,708,359 8.488,401 7,664,542-1912-J5 ... 17,713,385 19,449,841' 9,750,493 7,931,121 1915-18 .„ 22,811,194 20,616,57410,974,559 8383 075

.The wool season began rather late owing to the'epidemic;'and : it was not until December that supplies came forward ■freely. The clip. in. the Wellington die-' met showed signs of tho flocks having gone, through a. severe winter—the staple in many inetances~tfas"weak and broken and short in growth, and there was an absence of brightness and luetro. Hogget wool partioularly was tender and indifferently grown. In fact, whereas the previous clip, taken on the whole, was one of the best for some yeure, the one •under comment was, one of the poorest. The clip for the third time was taken over by the Imperial Government at tho schedule prices. The 1919-20 clip willalso, be taken on the same lines. In the meantime London 'sales will nave ''bogun again and the wool centres will have time to look round and reorganise after their long period of Government control.

. Up to the time of the armistice them was a considerable accumulation of wool in stores throughout New. Zealand. The bulk of the 1917-18 clip was still nnehipped and,the new season's wool, was coming into store. The situation looked a difficult one and it was feared that a considerable quantity would have to remam m the country in the hands of tho fiiowere, which wonia consequently'not bo paid for by the Imperial Government However, the improved shipping outlook Bince tho armistice has cleared the position, aud the last of the 1917-18 clip nas got away in January-Fobruary Hue year, and a good quantity of the new seasons clip has also been removed to America and the United Kingdom, and outlook is for clear etorea for tho next season's clip. Hemp, i The market for 1918 remained at a comparatively high levol, averaging about g.f.a.q., f.o.b. Wellington This Jioijever, is .£ll per ton lower than the average for 1917. • Tho .London market was practically closed, owing to . tonnngc difficulties, throughout tho year and very small ship. Jnents were made to that quarter. Amer. ica sustained the market almost entirely, and -large shipments were made by and sailer. Australia was an intermittent Jniyorl . • The production for the year ending December, , 191S, was .29,847 tons against 80,809 tons for 1917, and 8187 tons of tow against 40M tons for 1917. The immediate futuro of tho market is olonded in uncertainty. America has ceased buying, for somo months at any rate. The London ■ tonnage position is easier, and tho belated shipments are . getting, away freely, but there is a lack of interest in forward business which will doubtless be altered when conditions in tlie United Kingdom and Europe becomo more normal.

The approximate monthly prices received by millers havo been as under. Tbn quotations are for t-.f.a.q., f.ob Wellington :-.Tanuarv, l'Jlft. .«!; February' £a!i; March. .£sl; Anril, Ml; Mav 613June, £i 3; July, ,£39; Aurusti ,£3B- Sen' tember,-,£38; October, ,£39; November December, ,C3B. Sheen Skins and Hides. '. Sheep skins me' still being eomman. deered by the Government under the snin" conditions as previously. The comniandppr of Tiides ceased on 31. iniS, nn'l «inco then hides had 'a free market.until February. 1919, when Hie Xo«\ Zealand' Government, in order to provide leather for' manufacturing of standardised boots, introduced lobulations prohibiting export until local tonners have exercised an ontion on the hide? at the prices previously fixed under the Imperial commandeer. Dairy Produce. The present season, lias been probably the most extraordinary in the history of the Dominion. The latter part of the winter, was the coldest on record, and ■those climatic. conditions continued far into the period when spring conditions should have prevailed. The two previous winters of 1916 and 1917 had been mild, and this fact had contributed in a ((rent ■measure to inadequate provision being made by way of winter feeding, to meet the altered conditions. Consequently the

mortality amongst dairy herds was heavy and couEjiderably aboyo normal. The above conditions continued in several districts to the end of the year, and together with tho general effects of the late epidemic, materially influenced, tho supply of milk and decreased the output. However, since the beginning of the yenr 1919 matters have improved, and the atttumn output indicates that any losses in production during tho earlier poriod of the 6oason will be made good.

Below are given tho shipments from September 1, 1918, to February 28, 1919. These, of course, are the actual figures covering tho quantity exported:—

Butter. Cheese. Tons. Tons. , 1914-15 17,000 27,000 • ■ 1915-18 17,350 28,100 1916-17 12,250 . 20,687 1917-18 8,771 / 8,741 1918-19 11,145 27,314 There were still considerable quantities of butter and cheese held in freezer and cool storage on February 28, namoly, 227,950 boxes (5700 tons) of the former and, 190,440 crates (30,650 tons) of the latter.

Butter.—The producers .have again disposed of the output of butter to the Imperial Government. They-were given the option and: decided to make a contract for two years, so that all tho exportable surplus goes to the Imperial Government up to July 31, 1920, on tho following terms t— Creamery butter, first grade, 181s per cwt; creamery buter, second grade, fid. per cwt. reduction for every naif-grade point below first grade; whey butter, first grade, 1625. id.,per cwt.; whey butter, second , grade, 1575. Bd. per cwt.; dairy butter, first grade, :1625. 4d. por owt; dairy butter, second grade, 1575. Bd. per cwt.;. milled butter, first grade, 14Ss. per cwt. , ; milled butter, second grade, U3s. Bd. per cwt. Prices are:, .f.o.b. ooean 6teaniar. Producers to pay oil cool storage up to two months,, and all , insuranoa charges until butter ie placed f.o.b. ocean 6teamer.- Price on the local market is fixed on the basis of Iβ. sd. per pound bulk, at factory door during the term of the contract. Factories supplying the local market are protected by an arrangement whereby local and export prices are equalised, and all factories will thus receive the same rate.' It is estimated that the equalised price'will net about Is. 6Jd. per pound to .the'producers. An advance of 90 per cent, of value is made against export butter after being days in store.

Cheese.—The output has been sold to the Imperial Government for two years ending July 31, 1920, on the following terms:—First grade factory cheese, 103 d. per pound; second grade factory cheese, 10 Jd. per pound; third grade- factory cheese, 9}d per pound; second grade dairy cheese, SJd. per pound. Prices are f.o.b. ooean steamer. Producers pay all cool storage up to two months, and all the coat of' insurance until cheese is played on board ocean steamer Producers receive an advance of 90 per cent, of value from the Imperial Government after the cheese lias been 14 days in store. ' Import Trade, The volume.of imports is the largest in value for any year The actual landed value in New Zealand ie undoubtedly considerably in excess of tho 24{ millions shown, as imports are assessed for Customs purposes at the fair market value in tho country of export, plus 10 per cent, to cover transportation charges. In actual fact, in view of freight rates ruling,- the -percentage be considerably liigher. Since 1911 our import trade from the United States of America and from Japan his shown great increase. Imports from tho United States are double in value of those of 1914, and imports from Japan at least treble. ~'•■' Local trade continues to l>o good, but there is a disinclination to carry large stocks, and, as was the case last year, there has been a great deal of inter-buy, ing from house to house and from. Australia to New Zealand, and vice versa, of articles which wero previously procured from- overseas. ' . After the War. Now that the' war is over no doubt strenuous efforts will be made by thb British manufacturer to regain much'of the trade which he has lost to the United States and to Japan. At the present •time organised effort is being made to retain the trade connection in the Dominion in goods ,of American and: Japnjiesb'manufacture."Although the armistice was signed-in November, there has not yet been any largo decrease in prices fov goods from the United Kingdom—in 60me commodities prices are higher.

The general tendency on the part of importers is to.exercise extreme caution in buying in the expectation that there will be a drop in prices. This is particularly' noticeable in soft goods, in which clas,3 of commodity the British manufacturer does an extensive trade with New Zealand. It is quite evident that the transitional period between the cessation of hostilities and tho return to normal trading is likely to continue to bo a difficult prie in Which _to transact business with the United Kingdom. The British manufacturer is, no doubt, faced with the difficulty of obtaining raw materials in some instances, and that the price of cer> tain law materials is still controlled, with troubles arising from the change over from the fulfilment of supplies for war requirements to ordinary trade ieciuirements, and with labour troubles. It is a period of uncertainty for the manufacturer, and there is no factor which ismore disturbing in commercial activities than an element of uncertainty.