WELLINGTON NEWS

Hokitika Guardian, 25 November 1927, Page 4

WELLINGTON NEWS

THE TRADE RETURNS. (Special to “ Guardian WELLINGTON. Nov. 23. The exports from New Zealand for the month of October amounted to £2.414,407 against £1,(170,287 in October 102(5; there was thus an increase of £070,000. The imports for the month totalled £4,588,245 a’s compared with £ I .h0t!,700. a decrease of £748.525. This is undoubtedly very satisfactory, and this should he the continuous aim of the Dominion, that is to maintain the balance of trade in our favour. On the month the imports exceed the exports h,v £1,211,028. while in the corresponding month of last year the excess of imports was £2,(5(53,174. For the ten months to the end of October the exports totalled £10.240.005 against £40,020,207, an increase of £1.240,788. equal to a little more than 4 per cent. The imports for the ten months amounted to £47.272.274 against £41.741.128. a shrinkage of £4,4(58.851, or a little more than 10 per cent. The balance of trade shews that while in the ten months of 1020 there was an

excess of imports amounting to £2.720,021. in the ten months of this year the position has changed completely for the exports exceed the imports by £2.087.721, which is decidedly satisfactory. It is pointed out by a paper striving to put the best appearance on tbe figures that during the period from Jamtary 1, 1025, to October 41. 1027. the exports totalled £140.707,842, and the imports to £140,018.221. shewing an excess of exports for the two years and ton months of £1,1750,508. In other words the unfavourable trade balance of 1920 amounting to £1,014.088 has been cancelled by the credit balance of £2,805,805 of 1025, plus the balance of £2,087,721 for the ten months of this year, and there is £1,179,580 to the good. From this it would appear that we have been paying our way during the period named. That is true as far as it goes, but an economist would not admit the statement as correct. We have to pay on the debt contracted by our Government abroad approximately £0,000,000 per annum, so that in the two years and ten months we have been obliged to find £17,000.000, while the excess of our exports over our imports, or the trade credit balance during the period was only £1,179,598.

The interest on the public debt also on the debt due to foreign money lenders by local bodies has been paid, and the money found by further borrowing. In 1.925 the Government borrowed £7,040,000, in 1920 it raised £0,000,000, and in .May last a further £(1,000,000, making in all £19.000.0(10 raised in London, and there were other sums borrowed in Australia, and several of one local bodies borrowed freely in London and Australia. This banquet of borrowing has given us a false prosperity and now we have to pull up. Australia is going through the same experience, and there, although the export season is in full swing, there is a vast amount of unemployment. There is still unemployment in New Zealand, although not so pronounced as a few months ago, but it is obvious that when the seasonal demand for labour slackens, the unemployment problem again will become serious. Thou again, the drop in the imports amounting in the ten months to £4,408,854, must have an adverse effect on domestic trade. / With so much less merchandise to handle, there must be a contraction in turnover and the trades will be obliged to shorten sail. Wholesalers and retailers arp finding the collection of debts more difficult and the records of Lite* Magistrates’ Courts show that creditors have been obliged to seek the assistance of the Court to collect debts, while the bankruptcies which have increased largely this year tell their own tale. The number of alleged embezzlements reported recently also is very significant. It is very doubtful whether the people have learned anything from the recent depression, for extravagance is apparent everywhere throughout the Dominion.