WELLINGTON NEWS

Hokitika Guardian, 21 May 1927, Page 1

WELLINGTON NEWS

-MOTOR VEHICLE IMPORTS. (Special to ’’ Guardian.”) WELLINGTON. .May 18. For the past two years the outstanding feature of Xew Zealand’s foreign trade has been the great growth of the imports of motor vehicles, parts and accessories and motor fuel. It was obvious to everyone that the pace could not be maintained, that sooner or later the ” saturation point ” would be reached. We should have had this point long ago but for the development of instalment buying and the assistance rendered by finance companies. The official figures show that at the end of April there were 1011,374 motor vehicles, registered but of these 33,917 were motor cycles, so that there were 129,107 motor car's and trucks, but deducting the trucks, of which there wove 22.907, the number of motor cars registered at (lie end of April was 100,910. equal to one car for every thirteen of the entire population, but if commercial vehicles and motor cycles arc included the proposition is one motor vehicle to every nine of the population. Our ratio is only exceeded by that of the United States which is the wealthiest country in the world, and it does not require a good deal of intelligence to realise that in this matter wo have over-run the constable. And the fact is being realised for there has been a sharp contraction in the number of vehicles imported. During the first three months of this year the number of motor vehicles and'chassis imported into the Dominion was 3,008 which contrasts with 09.11 in the corresponding quarter of 1920. a decrease of 3310 equal to nearly 00 per cent. The values were 12)01.208, as against C 1.032,171,.032,171, a decrease of C 107.90.3. which is very satisfactory in the present slate of economic conditions of the country. The values given arc current domestic values in the country of export, plus 10 per cent. Our imports from the United States during the first three months of this year were: 1528 vehicles as compared with 2135 in the first quarter of 1920; from Canada we received LIU) against 3892; from the United Kingdom, 704 against 805; Italy, 184 against 87; France, 22 against 33. and Helgium nil against 2. The heaviest decline is shown by Canada. and tin’s is surprising in view of the advantage enjoyed by that country over the United States in tariff preference. Italy shows a very substantial increase. The commercial vehicles imported during the first quarter of the year numbered 880 against 571 in the first quarter of 1920. Of the total 333 came from the United States. 489 from Canada, (it) from Great Rritain and 2 each from France and Helgium. There can he no adverse comment on the increase in the imports of commercial vehicles, for Xew Zealand can find plenty of use for such machines, but the ordinary pleasure car is over-done and is a menace to the motor trade. DEARER MONEY.

The raising of the overdraft rate has been accepted by all and sundry as an invitation to heave bricks at the banks. It is robbery” says one individual, ••There is a bank monopoly,” says another, and this sort of loose talk by critics who do not know tbe first principles of banking, is harmful, not to the hanks but to the country. It is true that the banks are associated in operations of this character, and it is difficult to see anything wrong in that. Have not the workers got their unions? And when the unions go to the Court it is not to have their wages reduced. I lie employers oi every description have their trade organisations. mutual benefit being the basis oi such groupings. There is the British -Medical Association, the Law Society, the Accountants’ Association and numerous other organisations and associations which arc. accepted by the community as perfectly legitimate, hut an association of hankers appears to be viewed as n criminal offence. Bankers have, their business rights like tiiose in other businesses, and flinging mud at them becafise they have raised their rates of interest on overdrafts does, and can do no good, ilie advance in rate is duo to obvious facts. 4he banks have not the hinds available to meet all the demands, or even a large percentage of the demands, made upon them for credit, and it is therefore correct to say there is scarcity of credit. When there is this scarcity in any marketable commodity, be it butter. cheese, meat. potatoes, or any class ol labour, the price naturally advances, and that is what happened in respect to banking credit. Instead of indulging in coarse invectives, it would lie more useful if we overhauled expenditure, examined costs of production, re-valued stocks and generally set about putting the house in order. Perhaps it is cheaper and less troublesome to slang the bankers.