TRADE &COMMERCE

Dominion, Volume 12, Issue 210, 30 May 1919, Page 6

TRADE &COMMERCE

.ANNUAL MEETING OF WELLINGTON CHAMBER COMMERCIAL MATTERS DISCUSSED The animal meeting of the Wellington Chamber of Commerce took place yesterday. The members of the chamber lunched in their hall before dealing with the formal business. Mr. J. Ci. Hnrkness. the president, was in the chair, and had the Minister of Customs (the Hon. A. At. Myers) on his left and the Mayor of Wellington (Mr. J. P. Luke, M.P.), ou his right. About eighty members were present. . The toast of "The Kins,'"'wis honoured before business was commenced. The president moved the adoption of the Report and balance-sheet, and spoke at some length regarding the work of the council and other matters. fleiM'ring to the war, he said that so far a glorious victory had been gained. But much remained to be done. Statesmen to-day were face to face with the greatest problems of modern times, which would demand clear vision, strong foresight, and bold, courageous action to satisfy all interests and define, principles which should free the world from the scourge of war. People would assist by the exercise of patience, true courage, and firm trust' in those who had .led the nation through the hell of war, behoving they wonl'd guide the nation and the world to a peace that would last and bring increased prosperity and happiness to the human race. To-day people stood too close to past events to succeed in mastering the significance of the war, either in its effect upon the nation or the enemv. It would take a generation to do this.' Mr. Lloyd Georae had remarked, in one of his Guildhall speeches: It will take veal's, generations, centuries,, to develop the greatness of the hour we are passing through." These were Iruo words. Dominion Trade. Turning to trade matters, Mr..Harkness said the returns of exports and nniiorts" indicated, at first sight, that the balance of trade was strongly in favour of the Dominion. A reference to the figures revealed, unfortunately, that, whilst in value there was an excess of exports over imports, the increase was more imaginary than real. The value of goods exported was not one of quantilv. bub nitlier of the bisli prices realised for primary commodities. The apparent excess- 'was further discounted bv the practice of assessing the exports at their full value, f.0.b., and limiting •the price of exporls to a 10 per cent, advance on invoice cost. The hieh ocean freisrhfc rulin» durins WB. if taken mto nceount. would materially advance the total charge for imnorts. Had. however, transport facilities been better, r-i-.i was no doubt the margin of difference would have been more marked, especially if the heavy stocks of wool, meal, and dairy produce could have been shipped. The' country's safotv in tho future lay not in hisli prices, but in an increased output of the Dominion's pro. ducts. ' Whilst on. this subiect it was well to note the increase during the last, two years in the Dominion's (lock-- find Herds. Cattle now numbered 2,5G0.1!1"i v head, an increase of .151.974 in two years. Sheep totalled 26,538,302. an increase of 1,750.152. This was a distirict advance Inwards future development in the export trade.

.The year had been marked by innumerable difficulties and increasing anxiety. Commercially, the path of the business man had not been strewn with roses. .As the 'war progressed, the impossibility of obtaining necessary .supplies to carry on, the uncertainty attaching to the delivery of such purchases if made, the abnormal yalue to which goods advanced, and the constant fear of meeting a falling mar. ket with heavy stocks had lieen and still were a constant source of disquietude. However, the Dominion had prospered during the war, principally owing fo.lhe purchase by the Imperial Government of nearly all' the exportable productions, and the making of progress payments prior to shipment. /Hie total amount paid to Dominion producers since the initiation of the Imperial Government purchase, scheme had been £101,832,352.

"During the time these contracts remain in force, the future, financially, is assured," said Mr, Hnrkness. "Afterwards we may reap the aftermath of war. A reduction in prices, consequent on tho readjustment of foreign trade and the hardening of the money market, which is almost inevitable on tho i«tnoval of the present ■ Government restrictions, will have to be faced. Taking into account the reduced Dominion income arising from the sale of exports, the heavy burden of laxation to be borne, the only way to maintain continued prosperity is the redoubling of our efforts to increase production and the practice by nil sections of the'eommunity, both public and private, of striid: economy and thrift. Every thoughtful and prudent man will anticipate and make provision for the changes that must develop when normal conditions again prevail. War Loans. 'The raising of fiom 40 to 50 millions locally has met with considerable adverse criticism. This, however, is un.warrantable, and whatever opinions may bo held on the subject it is a matter of sincere congratulation that the Dominion was .in a position to help itself. When the Imperial Government was burdened with the obligation of raising ouormous sums for war purposes, it was unreasonable for this Dominion ■■ to oxpect assistance from them in such a time of financial strain. The objections to the local proposals are confined to two features of tho methods adopted by the National Government. A leading politician publicly expressed the view, 'That personally he was not satisfied that sufficient provision had- been made for repayment of loans floated, and that the principle adopted in England should bo followed here, by paying considerable portions out of tile revenue.' A moment's reflection should convince the most obtuse that any such policy is practically impossible. New Zealand is a debtor country. Capital is required for the development of its resources aud the expansion of its present industries. To place a heavy burden on the should- ' »r* of taxpayers by immediate- repayment would ineau the depletion of capital for the above purposes. Posterity has an equal right with those of to-day to liquidate the liability. If ample provision is made by u sinking fund to meet the obligation at a given date that is all that the Dominion is called upon to do. As to the remaining objection that interest payable on war loan investments should bo subject to income tax, such a contention overlooks the fact that without sonic inducement the money would not have been obtained. To obviate this difficulty, the rate of interest would have been increased,- which would be no good to the Dominion financially. Tho aspect of the question that concerns this Dominion, much more than the payment by debenture-holders, is the diversion -of fifty millions of money from legitimate channels of commerce and industry to be locked up in the war loans. The need of this sum in years to come may be better imagined than described. Income Tax, "The income tax has been considered by the council at special conferences and by the association chambers. The results of those deliberation have been placed before the National Government, and alternative proposals submitted, which would mitigate the incidence of Mo present methods, and not affect the total amount received. Unfortunately no steps have been taken to amend the acknowledged hardships existing, especially us they apply to companies and their annual profits. One serious objection to the present, method is that the statute does not permit a person or firm deducting from the profits for the year ending .March .11. 1910, the income tax paid in 1910 for the year ending March 01. 11118, as a charge against last .year's assessment. The total amount paid in income tax for the year ended March .'II, 1010. was .Cli.'inUU), end the taxpayers of the Dominion have this year to pay income tax on that amount. If municipal taxes arc free of income lax, why should Government taxis not occupy the san'» position?"

After touching on other subjects, Mr. darkness thanked the .members of the council for their help during the year, and acknowledged the unfailing courtesy, valuable advice, and self-denying assistance extended lo him by the secretary of the chamber, Air, 11. 1). Vickcry.

Confidence Needed. ' Mr, J. B. MaeEwan seconded the motion for'the adoption of tho report and balance-sheet. Jio said ho fell sure tlio members of the chamber shared his appreciation, of the address that their president had delivered, and of the valuableservices that -Mr. Harkucss had placeo at their disposal during the last year or two. It was a great satisfaction to all to know tnat tiie war had been earned to a successful conclusion, but at Dm same time tne coining period of recon. struction could not bo regarded without anxiety. The next twelve months would be a verv critical period in the history of New Malawi. Tnere was a great deal of mist-rust among the different section uf the community, and this nustrusr would requiro to be combated. It was u re«retlablo fact taat some public men and some newspapers were making-mis-leading statements with regard to what they termed "profiteering." He wished to emphasise tne fact that the interests of the nation demanded mutual confidence, team work, and an honest effort to appreciate the other man's point or view. Air. MaeEwan referred to the question of profiteering in some detail, and added that misrepresentation ana misunderstanding were going to ha-mpoi-tlio tasks of reconstruction unless the community as a whole avoided them. Tlio motion was carried. The National Government.

Mr. R. A. Wright. M.J?., proposed tho health of tlio members of the National Government. He said it was not to be denied that the National Government ni the present time was unpopular with « large section of the people. Hut ho would like the business men to realise that in 1915 there had been no alternative to the formation of the National Government, since neither party had a secure majority of its own, and that the Government had been formed for a particular purpose-thb successful prosecution of New Zealand 8 share of the war. Tne mistake that the parties had made was that they had lived in the same political house without being married. (Laughter.) They had tried to worJc together while remaining two distinct parties, and the result had # linen that vliey had continually followed the lino of least resistance. But they had stuck lo their original object, the successful prosecution of New Zealand s share of the war, and it must be admitted that they had discharged tlm part of their task in the best possible way. (Applause.) Mr. Wright added that the Hon. A. M. Myers, who was with them that day, was one of the most popular members of the Ministry. He was popular on all sides of the House, because he was approachable, because he conducted his Departments 'on business lines, and because he could be depended upon to givo a definite auswor on any point submitted to him. .The Minister of Customs.

The Hon. A. M. Myers, replying to the toast, expressed' his appreciation ot Mr. Wright's words. He regarded the fathering as a very important one, and he had listened with very great pleasure to the interesting speech made by the president. He was not in agreement with everything that had hcen said- by the president ami Mr. MncEwan, but he would not attempt to traverse all the points raised that afternoon. As Mr. Wright had said, the National Government came into existence beeaus'eneither of the. great political parties could carry on unaided. He thought it would he admitted in tho years to come that the members of the National Government had realised their /responsibilities in seeing that New Zealand took a worthy part in the great war. He could understand that there might be « feeling of disappointment in regard to tho measures taken in preparation tor reconstruction. Mr. Wrisrht had put tho position aptly. The National Govern-, nipnt was not an ideal Government to grapple with the problems of reconstruction. The people of the Dominion would have an opportunity to record tlie'.r opinions at the ballot box in a few months, and he would like to say that the business men would have a great responsibility on their shoulders. The farmers were now putting their opinionsand wishes before the peonle. The Labour Tarty was taking similar action. It was hiffhlv desirable (hat the commercial men should also make their Amnions known, in order thai the electors mMil be assisted to form sound judgment*. He did not feel that the commercial mer> had risen to a sense of 1-lieir duty in ■ regard to public lite. Thev had tended to concenIvnte their attention on the matters that immediately concerned I hem. and leave national problems in other hands. It was finite time, that the commercial men took a larger share in public, life. Thev ought to he represented in Parliament, in addition to the farmers and the workers, and help I<> solve the problem*; of' reconstruction. The unpopularity of-1 he National Government wa* in a'sense high praise. No Government, that did its dutv in time of war could be pomilar. and if Ihe National Government, hnd d<"io lis duty during the war then its chief purpose had been achieved. The Financial Outlook.

Referring io financial > matters, Mr. Mvers said it was true that the public debt, of New Zealand been increased by some' .£78.000.000 during the nt period. But he would remind ihe gathering that of this sura over- 4.'nt,oflft,floo bad been raised bv the Government in New Zealand. The interest won d be paid in New Zealand, and so would return (o the channels of induslry, and be available for local development. .It was a reassuring feet that the Dominion hnd become more largely self-supporting financially than had been deemed possible before tho war. The additional annual charge for interest and sinking fund in consequence of war cxiiendilure, was going tt, lie tlomc _-E4-,Onn.ftOO a year' and in addition there would he 1 charge of .£2,000,000 » year for pensions. This increased financial burden woi'M have to be borne by the people of the Dominion, and the figures siicl verv plainly that there must be increased production. Measures must -be adopted to stimulate production, and the country must not overlook the fact lh.it the apparent increase in exports durmo- re--oent year' had been due chie"v to high wick When prices began to fall n?ai»_, ihe country would be in a ilifneuH position unless production hnd been increased iii the meantime. He would saw in this connection, that he ws entirely in accord with the poW of scenrine expert advice for th» ' Government in business.matters. He had proved the verv grenf value of expert advice in Ins work as of Munitions and Supn'ies The business men who had advised I'im had wed 111" country hundreds of thousands of poind?. *'<; Minister enpld know enout'h to hnndl" al> the difficult end i"tric.ite problem": that enfne lvfore ltini day after, dav without the advice of experts to. guide them. Mr. Mve'-s mentioned tariff mailers, and in conclusion said he believed that chambers of commerce "laved ■> verv importon t part in Win l'f" of the emntnniplv. 71.. noticed that the president of the WpHin"t"-' f'h'unl"- we? al'-o chnirir"" Of th-'Weir-lWf." T1.,..!"",. Fioenl. He hojed tip'l the port of W»lliiu'ton woidd continue to nrnuress. and would see its wav to preoiire for the reception of the ercat e|«>if«<>i's Mint would em-aee in I the New Zealand .1 rode when facilities were pnr.-ide'l for them, flu- gathering then dispersed.