WELLINGTON NEWS

Hokitika Guardian, 13 January 1926, Page 4

WELLINGTON NEWS

| EXFORT VALUES.

(Special to “ Guardian.”) WELniNGTOX, Jan. 11. The Government Statistician lias in the latest Year Book some interesting tables showing the values of our principal exports as recorded and as computed on the basis of values for the year ended June ,30th. 1914. The items taken compose about 93 per cent, of our total exports. The value of these, that is of the 93 per cent, for the year ending June 30th. 1911, was £22,621,314. For the year ended June 30th. 1925, the recorded value of our export's was £53,594,03-3 and the value at 1914 prices was £30,340,536, so that there was a price gain of £23,254,099. In 1924 the price gain on the same basis was £16,430.011. In 1923 it was £12,176,021, in 1922 it was only £5,644,083, and in 1921 it amounted to £18,807.751. The increase over the 1914 level for the last five years amounted to £116,128,388, of which £76,312,465 was due to increased prices, and only £30,815,923 to expansion in ouput. This is scarcely a fair comparison for in [921 and 1022 the exports included considerable quantities of accumulated stocks, 'faking the last 3 years only in which there was very little old stock there was an increase as compared with 1914 of £75,411,036, of which £51,861,130 was due to increased prices and £23,549,906 to increases in volume of exports, and this latter is very satisfactory as showing that the country is steadily increasing its production. But about two-thirds of the increase shown in the past three years has been due to higher,prices and this is where the danger lies, for we cannot expect the United Kingdom to continue paying high prices for our products. How

that country has managed to do so up to the present is marvel lons but there are indications, and very strong indications of a change. There is a decided uncertainty about all produce markets. AA'e see wool steady for a week or two and then there is again disclosed a downward tendency, and tho same thing has happened in respect to butter, and if commodities that meet with a world-wide demand could he examined the same thing would probably be noted there. A new complication has arisen within the past few days, for the Federal Reserve Bank of New York has raised its rediscount rate from 31 per cent, to 4 per cent. AVlien this institution in February last year raised the rediscount rate from 3 per cent, to 3.) per cent, tlio Bank of England rate was promptly advanced from -t per cent, to 5 per cent, and it may be forced to follow a similar course this week. At all events there i.s little prospect of the money market easing which means that prices of commodities will decline. AA'e appear to have entered upon a period of dear money and falling prices. TESTING TIME FOR BUTTER. The British butter market will receive its most severe test this month so far as imported butter is concerned lor the arrivals arc expected to be very heavy. In the five months to the end of December the exports of butter from New Zealand aggregated 007.D1G boxes, but it should lie stated there were no shipments in September owing to the seamen’s strike. During the current month -189,980 boxes equal to about 12,249! tons are expected to arrive in II steamers, which means that the heavy shipments of November, when 415,0--, boxes were exported, and the earlier shipments of last mouth will be flooding the market. In addition to tbis there are the comparatively heavy shipments from Australia and the Argentine to be reckoned with. It would he absurd to expect prices to hold up uiiler this weight, and the question i.s not ■whether 'eha. will fall, but how far thev are likely to drop. The latest cabled quotations show that New Zealand salted butler stands at 163 s per ewt. and Danish is also quoted at the same price, which seems to indicate that New Zealand butter is being held up in store. Usually Danish butter makes a few shillings more than New Zealand, but in the absence of the German demand the Danes are apparently adhering to their practice of clearing supplies each week. Now Zealand of course cannot adopt that method .Iwc-nuse of the very great difficulty of regulating shipment's. The question of importance just now is how Fni* «we prices likely to fall. Idist venr the lowest point touched was 158 s. AYill the price go lower this year? It means much to the whole community.