Untitled

Hokitika Guardian, 17 February 1926, Page 2

Wui-i.v speaking in the North Island last week the Minister of Lands had something to say on trade prospects, lie mentioned that the balance of exports was less than sufficient to lav the interest on our foreign debt, that a. larger margin than three millions was lovessary if the country was to prosper, and that we may expect tho receipts from wool and mutton to he 10 millions sterling less than they amounted to last year. These are fails that the man in the street should hear in mind as an indication of the present trend in Lite course of 'events. Sir Harold Beauchamp has estimat'd the drop in rereipts from primary products at twelve millions, compared with i last year, so that tho Minister is not over-stating the position hy declaring it to L: ten millions. 'the cstima'o is alarming enough to indicate a very marked shrinkage in the innnov to circulate, and it is obvious that trade must bo affected. But there is another aspect, and that is the increasing volume of import*. With the decline in exports. there is the conclusion that the country is likely to live beyond ils

means. ai;d if that comes to ] ass there v- >’l I o a sharp r.rniinder for all in the .-irir.geney which will l.e felt in the money market, end in the ultimate means for irmhii-'. Following tho war period there wits an abnormal increase in imports, and though for a couple of years the adverse trading balance forced down imports, during the past two years, the figures are mounting up and threaten to hr again 'abnormal. In that eveni a m riitgcn y will lie inevitable, and that will make the vear a very di Hie "It one. The Wellington commercial correspondent of this paper has been making the position clear in his various letters. But tho outlook is not a call for pessimism. Though trade may have to pass through a period of depression, it would lie well to hear in mind that this is a country of possibilities, and tho .shadow ahead is but a passing plrn.-c l . Bather does the situation call for Courage and action to meet the position with the determination to overcome the difficulties by gnaater production thereby providing larger means to pay, and at the same time resolving to economise and curtail where possible in th? determination to balance the budget the more surely on the right side.