WELLINGTON NOTES.

Hokitika Guardian, 28 May 1924, Page 1

WELLINGTON NOTES.

IMPORTS AND FINANCE. (Special to “Guardian”.) WELLINGTON, -May 26. The Hon W. Xosworthy. Minister for Agrciuluire, speaking at the opening of the Franklin Winter Show last week said that if the contingency should arise involving a drop in prices, there did not seem to he any inclination on the part of the people of the Dominion to realise that the amount of money which was going out in pay for imports was leaving the country in a very dangerous position. This statement has not passed unnoticed in Wellington, where it is regarded as a very stupid utterance. The .Minister does not appear to understand the principles underlying the mechanism id commerce. It is absolutely nb-iird to say that money is going nut ot New Zealand to pay lor imports. The only money in circulation here is haul; notes, and neither the British, Canadians, Americans or any other nation would accept New Zealand banknotes in payment for goods and services. The plain truth is tintl our exports pay lor our imports, and for the year ended March lilst. l!)2l. our exports amounted in value to roughly CoIJKKt.iKKt. and our imports to approximately .C to.l/tlO.Oim so that after paying for our imports we had an apparent surplus ol JEfi.OIKMHUh But it is not imports alone that we have to pay lor. there are a number of other items, such as interest on public and private indebtedness outside the Dominion, and ulso lor services rendered by shipowners, marine underwriters etc. The £6,<>!):>, <>!>;> surplus referred to above was insufficient to meet these liabilities and the difference has been made up by further borrowing, principally in Loudon. I’robably there has been excessive importing in vc-poct to some classes of merehandi.se. but ■ iat ir> a matter than can soon lie righted by the importers.

A DR OR IN RRU FS. In hanking and financial circles here liie opinion is tirmlv held that prices o. food products must steadily decline during the next live years. In the fni ure it is likely to he downwards, such, at any rale, is the common opinion of economists. It simply means that as the world gets hack to the pro war basis ol industrial and trade activity, the tendency will he lor economic forces to produce about the same state of ec|tiilibt'ium as beloiv. It is pointed out here by a high authority that tile hulk of our exports are I nod products, and for these product- ihcie is lull one free ami open market, and that is the British market. I hi- market i- also open to the food products of all the world, and the surplus from all countries is untiring into this five market. Evert little while tin- market becomes ovei'sloek. cl with -onto one line of food products, and down goes the price. This lm- iv.-enlly been demonstrated with respect to lull ter. When New Zealand butler was ruling at 172 s in the Loudon market, the supply was in excess of the demand at that price, the market, was over-stocked and the price was dropped, and at tin* time of writing the price is down to B'-ls. At this price there is moderate inquiry, and it i- coneeivahle that if snppli expand that even t hi- price cannot ho sustained.

EASTERN A! AI! NETS

• During l-he past twenty year?' or more the desirability of endeavouring 10 find markets ill the East tor Now Zealand produce and liiiiliufaouil'os has been the .subject of much discus-,ion. Australia 100 has been animated by the siiiiie .sentiments, and the Australian Governments have spent a lot ot money in sending t’ommis-ioners to the East to inquire into the pro-peels ol doing busiiic-s with the teeming millions in tlie Fast. They have aNu maintained resident commissioners in some of the Eastern ports, hut Australia lias not found the business profitable. 'I he teeming millions of Asia are mostly poverty stricken, they are caste-ridden, and nurse many prejudices. I here is probably a restricted market, in the East for certain food products that New Zealand can produce and possibly for certain manufactures, hut there are other countries such a< Australia. Canada and the United Stales, which produce the same class of goods at less cost, and in tile competition New /calami is hound to lie lelt behind. Still it is just as well that our merchants .should test the Fastei It markets and learn the exact truth. The Loader of the Opposition, Mr Millord, who recently returned from a pleasure trip to the East appears to be strongly convinced that there is a market fur certain New Zealand products. uml no great harm can he done in testing the- market. PROFITEERING IN FOOD-STTFFS.

If the costs of producti ire ever to fall in New Zealand then the wagemust he reduce for the wages hill constitutes about Do per cent, ol the eo.-t of production. R is obvious that wages cannot be reduced unless the cost of living is reduced, and this tedurtiuii cannot he effected while profiteering is rampant. Ihe suppres-iott of profiteering appears to lie the keynote of the situation. It i.s paint til to relief t that profiteering is most pronounced in respect to G.e foodstuffs produced in New Zealand. Local prices °f butler and cheese are kept, persistently above I oiid iii p:\ritv. Owing t > political intone twice in the shape of the embargo on Hour imports we are paying a high price, ami the price of eggs has been ■dfccted in the same way. I’crimps we nmv have to wait for » new Government to worry the profiteer. He must he suppressed ,-oluelloW.