WELLINGTON NEWS

Hokitika Guardian, 2 March 1927, Page 4

WELLINGTON NEWS

EXPORTS AND IMPORTS

(Special to “ Guardian.”) WELLINGTON, Feb. '2B. The exports tor 1000. that is for the calendar year, uere about £10,000.00!) less than tor the year 1020, an t [ it is this shortage that has depressed the country. But the trade figures for a d-Oendar year cannot be regarded as satisfactory because they take iti the end of one season with the beginning of another. For statistical purposes it is best to take the year from October 1 to September 30, because there is

very little of the new season's products shipped before October 1. except perhaps for a few boxes of butter. Jf wo take file produce years its suggested, it ltd this is the statistical year adopted by the Wellington Chamber of Commerce, then we have the trade figures for the four months of the produce year 1920-27. 1 lie exports for the four months to .hunt.try 31 hist totalled £13.133.797). as compared with £10,101,037 in the corresponding four months of 1920-20. Here is a decrease of £2.970,812. and it this rate of decline is averaged for the next eight months the year will close with a deficit of about nine millions sterling. This is 'a very serious matter indeed. This contraction of the purchasing power of the community must continue to cause unemployment, and must affect trade generally. There is little chance of produce prices improving. Apart from wool which is meeting with a strong market prices show a downward tendency. Frozen meat continues depressed and butter vital cheese are lending downwards. .If prices do not improve, what then 7 Contraction in domestic trade, smaller turnover for all in trade, and lessened profits. The imports for the four months under review totalled £1G,319,900. as compared with £18.851.700 in the corresponding term of 1925-20. it shrinkage of £2.531.811. This looks good hut it is not sufficient.. The exports declined during the period by £2.970,812, Void thus show a

greater shrinkage than the imports. Because we have to provide for the interest on loans raised in London and Ausralin. it is imperative that the exports should < xeeed the imports |n meet this obligation. The interest parable on the Government debt amounts to over six millions annually and there is in addition the interest payable on local bodies’ loans. and this now amounts to a fair sum. For the four months-of 1920-27 the imports exceeded the exports hv £3.180.100, udiilo in the four mouths of 1925-20 the excess was £2.7-17.129. At this rate the year will close with an excess of imports which would necessitate hoivv borrowing. The imports however are steadily shrinking; in .1 anil ary there was a decrease of £050.000. and we may expert, to see the movement continue. Shrinking imports, while necessary to bring about: equilibrium in trade, will have a very disturbing effect within the Dominion, and may, probably will lead to uneniplovment in shops and offices and factories. As yet no steps have been taken to meet the situation. THE lUTI'KII MARKET. The reduction of 8s per out made in the wholesale quotation of Xew Zealand -butter by th- London Agonev of the Dairy Control Board app'Vu's not to have stimulated consumption, on the contrary, as the retail price is above, wholesale consumption will he checked and more butter must go into store. Why the price was raised 2s per cwt on February II and dropped, 8s per cwt ten days later is puzzling a good many people, more especially as it was reported by the London Agency that sales had increased after the advance. The week-end cable message received by TTfdgetv and Co. stated that there was very little doing in Xew Zealand butter. Unless the Board is bent on following the disastrous policy adopted last season Inmany factories, the current prices for controlled butter must he further reduced. The latest figures show thht on February IS there were about 390.009 hexes in store in London and the quantity expected to arrive between that, date and the end of February was 111,000 boxes. The arrivals in .March are expected to total 530,000 boxes, and the buyers know all tin's. The multiple shops that are said to be operating collectively will continue to buy strictly from hand to mouth and will thus force -butter into store or force down the prices. It seems that the policy of the Dairy Control Board, and the system of marketing of the London Agency will now lie subject to a severe test.