The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MAY 6, 1927. A TRADE SURVEY.

Hokitika Guardian, 6 May 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MAY 6, 1927. A TRADE SURVEY.

Although recognising the need for caution, tlie Wellington Chamber of Commerce, in its annual report, expresses the view that the position in regard to the Dominion's trade balance should right itself this year. “The year 1 Odd has witnessed a very marked change in our overseas trade,” states the report. For the years 1923. to 1925 exports exceeded imports, though by a somewhat small margin, hut in 192(4 there was a reversal of the position, import's being in excess by £•!,- 542,817. Tt is much the same as happened five or six years ago, a splendid export year in 1919, prompted overimportation in 1920. and exports falling off by nearly 6j millions were £15,148,487 short of imports for that year. It took nearly four years to

wipe out that debit balance, even without taking into account our other outside indebtedness for interest, etc. Two flush years for export in 1921 and 1925 have again led to heavier importation, and in 192 C. as in ]920. imports showed a reduction in total value, and were not sufficient to provide for the heavier imports. To a certain extent the position was foreseen, and importation was reduced by £2.611,916, but exports were £9,971,123 less in value, resulting in an excess of imports of £4,542.817. This debit balance in our trading has had its effect in depleting the funds at the disposal of the banks, and this curtailment of the Dominion's national income necessarily reduces spending power generally, so causing reduction in importation, and if New Zealand’s exports improve as there seems every prospect of their doing, the position will soon ho righted, provided, of course, importation is kept within reasonable limits. Exports for the years 1924 and 1925 were much above the average and the latest drop only brings the total hack to about the average

of the real's 1920 to 1923. There is considerable uncertainty at the moment surrounding the market for dairy produce, and this disquietening feature may result in heavy reclamations of advances already made against produce of our farmers that has been

shipped nht'ond. Tliese appears every warrantor for the opinion that the realisation of the heavy stocks that have aeonnmlated after interest and storage costs have been deducted, not tie up to original expectations, and this will have its effect on thenational income, in which all classes of the community are concerned. The position should right itself this year, but the situation ealls for caution and economy to tide over this period of readjustment in our balance of trade."