WELLINGTON NEWS

Hokitika Guardian, 16 February 1927, Page 4

WELLINGTON NEWS

IMPORTS IX 192(1. (Special to " Guardian.”) WKI. 1,1 XGTON, February ]i. The value of die merchandise imported into X'ew Zealand during 192(i was £19.8>9,533. which compares with .Co-2,45(5.400 in 1025, 048,52(5,003 in 1921. and 043,378.103 in 1923. Com]>ai'(’(l with 1925 there is a decrease of £2.500,814, which is to some extent satisfactory, hut does not go far enough to establish a reasonable balance ol trade. It must he remembered that besides paying for our imports our exports must provide, for the interest that must he paid to Ihe foreign money lender. The Government debt in Britain and 'Australia calls for an interest payment of £(>.0(10.00(1, or a little more and then in addition there is the inter est on the* debt contrafted by local bodies outside of the Dominion. It mav ho asked how is the interest paid if. its is generally the case, the exports do not provide the required amount. The settlement is affected by furthei borrowing, in other words, we export securities and so meet our obligations. The imports contracted in 192(5. and thev will show further contraction this

year because the purchasing power of the community has contracted. The shrinkage in the imports though inevitable will not he the good thing that was hoped. The Customs revenue provides more than 50 per cent of the total amount raised by taxation, and if the imports are reduced this revenue will shrink and the deficiency would have to be made up by increasing other taxation. An increase of the* tariff would only partly meet the case. Prices would’advance and this would tend to check imports. Taking last year’s figures of imports, tile value of the soft goods brought into the country was £9.714.111. against £10,948,487 in 1925, a decrease ol £1,201,34(5. which is a good substantial decline. Some of this is no doubt due to lower prices. Metal goods imported accounted for £1.150,130 against £5,(537,215. a drop of £1,487,08(5, which is also very substantial. Machinery at £3,333.8(52 contracted by the small sum of £23.130. Foodstuff's accounted for £1.111,080. or £321.706 less I than in 1925. Tobacco goods declined £104.299, and timber by £310.200. The value of the timber imported best year was £85(5,139, against £1.19(5.349. in 1925. It was also less than in 1921. which would .appear to discount the claims of Lite sawmillers . that their trade is being menaced by foreign timbers. The shrinkage, however, may be mainly in foreign timbers used in furniture and cabinet work. Motors and their parts and materials decreased by £717.780, but this is due to fall ill prices, for the number of motor vehicles at 22,779 was greater than in 1921. The value of the motor vehicles with petrol itchled amounted to nearly 8 millions sterling or not quite ouo-sixth of the total imports, and it is :t question whether we can afford such expenditure. MONEY AX'D MORTGAGES.

The Long Term Mortgage Branch ot the Bank' of Xew Zealand is now operating under the legislation passed last session. To provide the capital tor this business the Bank was authorised to issue a million shares ot £1 each, of which the Suite subscribed for its quota. The dividend on these shares is fixed at 71 per cent. I lie Bank was also authorised to issue* debentures under certain fixed conditions, and it is understood that it i- cow in a position to deal with applications for long term mortgages, Farmers wishing to bci'i'o.v have now more facilities foi debug so than in the past. There is tin* State Advances Ofliee which can advance no to £5.031) on long terms, and there is the Bank ot Xew Zealand establishment. Furthei more loans i,iii be obtained from the Public Trust Ollite for extended periods. Valuations are strictly enforced by all lenders, and values are on the productive basis, and not on the basis of what other properties in the neighbourhood have been sold for. .It is an unfortunate fact that many farmers have paid too high a price for their properties and are overburdened, finding very considerable difficulty in arranging finance which is only natural. These ‘‘lame ducks” amongst the primary producers are gradually going under, and that also is inevitable. Apparently there is ample credit available to meet all reasonable and legitimate demands. Nevertheless the tendency is for money rates to .stiffen, but that is because there is less being saved by the people. Thriftlessness has been somewhat of a marked feature in recent, years.