WELLINGTON NEWS

Hokitika Guardian, 13 March 1926, Page 1

WELLINGTON NEWS

JANUARY TRADE RETURNS,

(Special to " Guardian.”) WELLINGTON, March 10.

The trade returns of New Zealand for the first month of the current year arc lar from satisfactory, for there is a very substantial decline in the exports. The volume of the exports for Hie month was t0,0157,0bi, as conipar- ' d with . 1:0,090,059 in January, 1925, a shrinkage of L* 1,058,078 or nearly 25 per cent. And this heavy decline follows upon a shrinkage of C 1.297,901 in December. Quite a number of items of export show shrinkaye, the principal being wool. The value ol the wool exported in January was C 1.058.927 as against .C 0,304,724 in January, 1925, a decline of 1i,705.797, and was due to the drop in values, and also lo the fact that 11.010 hales fewer were shipped. Butter exports in January were valued at C 1,130,180, against C 1.253.538, lamb shipments at £483.i;23 against £784,595, mutton £234,258 against C 277.071. beef 133.381 against ,C 12.222, dried milk 135,490 against C 52.304. tallow £40.005 against C05.2T1, calf skins 117,423 against C 21.203. cattle hides £32.059 against .135.281, wooled sheepskins £42.801 against. £58.287. and sheepskins without wool £36,211 against £02,351. The exports of cheese exhibited a substantial increase, the figures being £933.870 ayainsl £281.000. Other increases were New Zealand hemp £48.055 against £10,8.58 and kauri yum £34.080 against £31,055.

The imports in January totalled C 4.000,810 which contrasts with £1,808.142 in January, 1925, a decrease of £l4 7.020. The value of the motor vehicles imported shows a decline. the figures being £402.303 ns against £404.175. (lie slight decrease shown being entirely due to a reduction in price, as the number of vehicles increased, the figures being 2015 against 1857. The imports of motor vehicles ill January was equal to 84 per day for every day in the month, while the average for last year, was indy 01 per day. Tires, tubes and covers for motor vehicles showed a substantial increase, the figures being CH1.302 against £-51.703, and materials and parts £33.189 against £19.332. The reduction in the total imports though small, is satisfactory, as indicating that importers have made n beginning to curtail imports. Wihi ilie January figures the returns for the first four months of the produce year are available, and when these are analysed it is evident that a very great, change lias come over the economic situation, 'flic value of the exports for the four months to .Tnnunrv 31st last was Clo.lo-8.999. as compared with £18.251.502. for the corresponding term of the past season, showing a shrinkage of C’2,l 12.503, equal to 11.73 per cent. This means that the income of the producers lias been reduced by £2.142.503 in Ilie 4 months, and Hie shortage will show a progressive increase. This curtailment of income must have a far-reaching effect, for il means (hat the spending power of Hie farmers is si much less. General trad*.' must suffer, and as there must necessarily he less savings, there will b< verv little capital available to replace worn out capital, or for the further development of the resources of the country.

The imports for the four months amounted in £18.882.410, as compared with £17.198,289, an increase of £1.f;54,127. equal to 9.77 per cent. Tn. view of the, very heavy contraction in fbe exports, it is obvious tlmr the impends are excessive, and owing to flic lessened purchasing power a lot of the merchandise must figure in bargain sales. However, a start has been made (o cut 'loan imports, ami it is lo be Imped that the process will he eon tinned with vigour so that we may have a reasonable balance of trade, 'faking the trade figures for the twelve months ended January .’list last, the exports were valued at £53,004.194 and Ihe imports at £52.308.781. showing ;m excess of exports over imports of C1.20.5.H3. The trade figures are very disheartening and it cannot tie ioo strongly emphasised iliat' there is urgent need for economy and caution in entering into commitments. MARCH WOOL SALE.

For the wool sales to ho held during the current month there is lo be no limii of offerings, and those fanners who have still got hales of wool on the farms should endeavour to get Ilie same into the sales this month, 'flic stores of the Wellington ’wordhrokers were pretty well cleared up after the February sale, still it is expected Hint from 18,009 to 20,000 bales will be available for ilie March sale, which is looked upon as the clearing up sale of ihe year. The catalogues for the Wellington sale to be held oil March 27th, close at- .5 p.m. on March 19th. There is nothing to be gained by bolding back wool now. for the market is as good as it is likely to be. and belter results arc not to lie obtained at the London sales. The Wool Committee, which regulates ihe offerings, functions under the Board of Trade Act, 1919, the Government appointing one member of tile Committee. This is the full extent of Government interference in the wool trade, and this is rather welcomed hy the

woolbrokers who realise that otherwise it would be very difficult, if not impossible to regulate the offerings at the different coni res. The members of the Wool Committee function without fee or reward, and although they endeavour to act fairly hy all. they yet come in for ungenerous criticism.