Hokitika Guardian & Evening Star THURSDAY, NOV. 25th, 1920. TRADE RETURNS.

Hokitika Guardian, 25 November 1920, Page 2

Hokitika Guardian & Evening Star THURSDAY, NOV. 25th, 1920. TRADE RETURNS.

The statistics of New Zealand’s exports and imports read in conjunction with other statistical information, reveal a position' that should, considers a leading financial journal, make everyone a little more careful. A change has come over the economic situation, and unless all classes display reasonableness and some measure of confidence there will be very great Double for the country. The trade figures for the nine months ended September 30th. 1919 and 1920 compare as under: Nine M’ths to Exports Imports Sept. 30th. £ £ 1919 40,575,967 22,393,104 1920 35,185,567 43,179,644

It will be seen that the exports have decreased by, £5,390,400, while the imports have increased by £20,786,540. The percentage movements are a decrease of about 12 per cent in exports and an increase of 90 per cent in imports. The causes for this change and an explanation of the abnormal increase in the imports can he readily given, hut we are not concerned about that, the effect of the over-importation is what is of consequence. In addition to paying for our imports of merchandise and securities we have to pay for interest on loans raised outside of New Zealand and for services rendered by foreign carriers, underwriters and bankers. What is the annual charge for the services it is .impossible to say, but the interest bill is not less than three millions sterling. We can make payment by exporting goods and balancing trade that way, or we can export securities, or we can borrow the money from our creditors and pay whatever balance there may exist in that way. It will be seen that for the nine months of this year the imports exceed the exports by £7,994,077, that ’s to say, we are in debt for that amount, and we had also to provide for the interest on loans, say £2,000,000 making a total, say of £10,000,000. If ihe Government could have borrowed in London, then the matter could have been settled by using the proceeds of the loan, but borrowing in London is not to be thought of now because the rates are prohibitive. This condition of affairs has resulted in Australasian banks exhausting their credits in London, consequently they are unable to sell drafts on London or buy London drafts on New Zealand, and this is going to check the import trade. It was stated In a cable mesage recently pub lislied in the daily papers recently 'hat. the Associated Chambers of Commerce of the, United Kingdom have resolved to approach Mr Austen Chamberlain, (Chancellor of the Exchequer) regarding the difficulty of financing exports to Australasia. It is an extraordinary t>osition, and the results are likely to he extraordinary.