WELLINGTON NEWS

Hokitika Guardian, 17 February 1926, Page 4

WELLINGTON NEWS

CONTRACTION IN EXPORTS.

(Special to “ Guardian.”)

WELLINGTON, February 15

The trade returns of Xe»v Zealand for the calendar year 1 925. which have already been reviewed, while interestinn do not disclose the true position that is causing so much alarm, amongst thoughtful business men. Our export trade does not begin and end with the calendar year; by general consent the produce export year extends from Oetolier Ist to September 80th. and the bulk of the exports goes forward in December, January and February. If the export and import figures are examined on' the seasonal basis, then there is cause for general alarm. We have in the Monthly Abstract lor January tile returns for October, November and December, which are the months constituting the first quarter of the produce year. The exports for Oetolier totalled €1 .958.09 1 against C2.f527.0U8 in the corresponding month of 1024. The November returns were £4,498,889 against £2,710.9,50 in November. 1924.

Here we see a very substantial increase and this was due to the holdup of overseas shipping. By November, the strike had more or less fizzled out. and as many steamers as possible were loaded with, the stored produce, so that the November figures really include produce belonging to the previous mouth. In December the exports totalled C 4,018.488 as against C 0.91 1,-149 in December, 1924. Thus in the closing quarter of 192-5. the exports won' valued at €ll ,071.1118 as compared with £11.555,503 in the closing quarter of 192-1. There was thus a shrinkage of £484.48.5 notwithstanding the extraordinarily heavy shipments of November. The imports on the other hand, which were not affected by the" strike, ■showed a stead v monthly increase. The imports in October amounted to C-1.7-1-5,809 agaisiit £-1.082.071 in October. 1921: the November figures were £4,831.480. against L'3,797.,‘100. and in December C-1.011,7-51 against €4,509.810, making a total for the three months of €14.221.000 against £12.889,847, an increase of C 1.531.7-53. Thus, while- our exports for the first quarter of the current produce season show a decrease of £484.48-5. and the imports alt increase of £1,831.703. Stated in another way the excess of imports over exports in the three months October-December, 192.5. totalled €0,150,582. while in the corresponding three months of 1924 the excess of imports was only £831,344. To maintain a safe balance of trade it will he necessary to cut down imports by several millions sterling in the current year, and there is little hope of that when a single vessel from Canada dumps 4.500 motor vehicles on the Dominion. It seems very probable that the imports will exceed the exports, and even with whatever amount the Government may borrow, unless it is an exceptionally large sum, and if that should he the position there must follow an export of credit to square accounts, and hai'd times for the people here. -MEAT AVOHKS LICENSE.

Although nothing much has been made public with respect to the attempted sale of the Wellington Meat Export Company’s business to Horlhwiek and Sons, a good deal is happening suh rosa. There are various rumours current from which it is gathered that a transfer of the slaughtering license would be guaranteed under certain conditions. It is alleged that an efiort is being made to loree an Umalgamatioii of certain alrnosl derelict companies and to save the guarantors of another freezing concern. This is very much desired l>v certain interests, hut the financial problem involved is an impregnable obstacle. Roughly, about half a million would he required, and it is difficult to know

"here so large :m remount is tu ((ime Irom. I!).? fanners might la;, persuaded 1° and a filth oI the amount, hut tlie business community could not ho induced i i find n hundred pounds for s uoh a scheiue. lor oonfidenoe in frooz--b>g companies has been ccimpletolv shattered. Ihe shares of such concerns arc not now regarded as a suitable or sale investment. Vested interests it -is known, are opposed to the sale, lint business men. financiers and hankers regard tin? refusal of the Government to grant the transfer of the license with some concern. Apart Irom the ftiet that the assets of the freezing companies are rendered practioallv valueless by the decision, there is the broader question of flic individual to handle his property to the best advantage. A Labour (lovenimem may yet secure office, and may use such powers more drastically that the present Ooverimient.