WELLINGTON NEWS

Hokitika Guardian, 15 June 1926, Page 4

WELLINGTON NEWS

DECLINE IN EXPORTS. (Special to " Guardian.”) WELLINGTON, June 11. The tremendous decline that has taken place in the values of our primary products is realised by only a few people and what it means to the community is understood by fewer still. Taking the official figures for the four months ended April 30th last and comparing same with those for the corresponding term lor last year, fifteen of our staple products show a decline of £8,587,328 equal to about 28 per cent., the aggregates being £19,(527,570 against £28,214,898. The greatest decline lias been registered by wool. The value of wool exported during the four months of this year was £7,870,103, which contrasts with £12.910.131 in the four months of last year, a drop of £3,069,071. From this it would appear that wool has been badly hit. hut the fact is that last year's values were excessive and caused heavy losses to practically every one who brought the raw material. iSI-adfohl is said to have lost about 10 millions sterling. Rutter also shows a heavy decline, the aggregate values being £3,818,156 against £5,124,391, a fall of £1.306,209. In the case of butter there has been a shrinkage of quantity as well as in value. Cheese shows the moderate decrease of £130.11(5. Taking in dried milk, preserved milk and casein the shrinkage in the value of the exports of dairy produce totals over £1.450.000. Frozen beef, mutton and lamb show a decline of £1,325,000. of which lamb accounts for £662.109. mutton for .£462,490 and beef for £170.844. Sheepskins dropped by £519,050. the aggregates being £433.787 against £957.857, so that the drop was well over fiftv per cent. The shrinkage in the other items was calfskins. £10,150; hides, £87.001: hemp. £13.410: tallow, £75.521 and timber, £237,328. The enormous shrinkage means a smaller income, and therefore, a

lessened purchasing power, and the whole country must feel the effect. Retail trade must suffer, and as a consequence wholesale trade will feel the pinch. With a contraction in trade there must follow a shrinkage in imports. and that must cause a reduction in the customs revenue. The smaller income will result in smaller income tax payments, and other economies forced upon the people must bring about reductions in other departments of State. The railways must suffer with a shrinkage in merchandise, freight and also in passenger traffic. With the smaller income there will he less credit for those who wish to borrow, that is to say money will be dear and scarce. When the exports began to decline a few bankers and financiers warned the public of the dangers ahead but they were called pessimists and their warnings discredited. Of course the position will right itself, but before that is accomplished there will be considerable suffering, which is unfortunate.

BORROWING RY LOCAL BODIES. To cope with the unemployment problem local bodies arc to be given authority to borrow without the sanction of the ratepayers, which, is a dangerous precedent, unless there are very drastic conditions imposed. According to the “ Local Authorities ” Handbook the gross loan indebtedness of local governing bodies has increased from £24,634.387 in 19.11-15 lo £5.1.028,357 in 1924-5, representing a per capita increase from £2l 8s 3d to £39 8s 2d. During the same decade the annual charge increased from £1.238,035 to £3,331,105, a per capita basis' from £1 Is 6d to £2 6s 3d. The net indebtedness after deducting accumulated sinking funds on March 31st. 1925. was £47,250,153. -The total receipts for the year amounted to £19.704,363. as compared with £7.597.059 during the year 1914-15. The 1924-5 total was made of rates £4.668,084, licenses, tolls, etc.,

£7.213.306, other revenue £298,774, receipt. l ; not revenue (mainly loans)

£7.613,399. Tlia disbursements wore slightly less tliiin the receipts with n tot.nl of .-C19.-122.833. which shows n considerable increase over the figures for 1914-0, £0,806,5(57. 'Rio principal items comprising the totals for 1924-5 were: Public Works £14.250.887; Hospitals ami Charitable Aid £502,245, administration expenses £843,140, interest. on loans and bank overdrafts £2,523,303, other payments £1,290,952.

At March 31st, 1925. the number of employees engaged by local authorities

was 22,802. and the amount of salaries and wages paid during the year amounted to £4.934.844. There were 2,792 clerical officials whose salaries totalled C719.H1, and 20,010 other employees (manual labour) whoso wages amounted to £4,215,433.