WELLINGTON NEWS

Hokitika Guardian, 24 May 1927, Page 4

WELLINGTON NEWS

THE SILVER LINING. (Special to “ Guardian.”) AYELLIXGTO.Y, Hay '2l. With the publication of the export and import returns for April one can glimpse the silver lining that everyone has hcoii looking for. The exports for the month of April amounted to t0.052.7/33 as compared with £5.173.705. there was thus a. shrinkage of £71.312. The imports for the month were valued at £2.818.887, against C3.800.0fH). a decrease of £1,031.20!) which is very substantial. Rut the figures for a single month cannot be accepted as a reliable barometer, for many circumstances and conditions may operate to affect the figures n! a single months. Extending the comparison to the first lour months of the year that is to the end of April, the exports for the period aggregated (£21.753.780 as against £21.418.U35. and these figures disclose a small increase of £335.751. This means that our income from the sales of produce overseas has increased by the amount stated. It is a small amount hut nevertheless satisfactory because it indicates the right trend. The imports for the four months to the end of April totalled £ll.Bl-1.766 against LT7.542.868 in the corresponding lour months of last year, and here we get a shrinkage of £2,728,162, which means that we have so much less to pay abroad for merchandise. The position then is that at the end of April we were better off by £3,063,853 than twelve months ago. which is very encouraging. If we extend the comparison a. little* further and deal with the produce year beginning on Ottoher 1, then for tlit' seven months to the end of April the exports totalled £26.082.111. as compared with £32.484.661. Here we find a contraction of C 1.560.157. Although there is a fairly heavy shrinkage in the exports the position | is very much better than it: was a year ago, because the exports tor the seven months to the end o! April exceed-

ed the imports by £2.558.780. while for the corresponding seven months ot the previous season, the excess ot exports was only £776,873. Thus on the seven months’ comparison the trade balance shows an improvement ot £1.787,967. which is very cheering. This credit balance means that we have the sum available for meeting other obligations, or stated in another way. compared wtih a year ago the purchasing power of the community Jins increased by £1.787.967. While these results are verv encouraging there is another very important feature in connection with the trade returns which must not he overlooked. Ihe shrinkage in the imports amounting to £4.590,157 for the seven months gives cause for some concern, il not some anxiety. This shrinkage means that so much less merchandise lias come into the country. consei|Uently there is so much less to he sold, and that will cause a decrease in the turnover, and necessarily of profits, and the cniesik’n arises can wholesalers and retailers maintain their present overhead charges and expenses I" 'I he probability is that ill the current and following months there will he Inrther heavy contractions in imports, and consequent loss of turnover and profits, and it would be asking too much of traders to continue their present expenditure. What will happen as a result of the .shrinkage in imports;' ihe whole trading, community must -uivl.v set about reducing overhead charges, stopping leakages and curtailing expenditure in every way. In t'ds process can labour escape feeling the pinchy In respect to running and other expenses labour accounts tor a very large percentage, and the wage ate- fixed by the Arbitration Court. The employer cannot make a cut in wages atl round, for that would rentier him liable to penalties, nor can the employee;; consent to a cut in wages without running risks ot being fined. Xo doubt the parties <ould negotiate ami come to a mutual arrangement in respect to a reduction in wages subsequently to he sanctioned hv the Court, hut this would involve endless trouble, and a waste of time. Employers are more likely to take the line of least resistance and fire a certain number of employees, and so reduce costs. ihe smaller turnover would justify this because fewer hands would he needed if; deal with the smaller turnover. :he

dismissal of workers in shops, factories and offices is the danger which confronts us. for it would he in tin* nature of a calamity to see such pen,ole out of work, for the reason that it is so difficult to make provision for them in other directions. These facts go to show that the Arbitration Court is just now rather a danger than a uei.o-

fit to the country, and a revision of the Court’s functions is inevitable Ihe Prime Minister has hinted at tnat.