The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MARCH 9, 1928. TREND OF BUSINESS.

Hokitika Guardian, 9 March 1928, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MARCH 9, 1928. TREND OF BUSINESS.

The bulletins issued by the Canterbury Chamber of Commerce provide an analysis of trade and financial developments which is of recognised importance Prepared by expert economists, they deal with matters vital to the welfare of the community and the nation, and should have the careful attention of all sections. The latest bulletin issued, comments the Lyttelton Times, is able to record a marked improvement in the trend of overseas trade, since for the first time since 1925 we have a substantial balance in our favour. Imports last year showed a decline of about 10 per cent, when compared with the figures of the preceding year, and this is attributed to a fall in import prices of 5 per cent, and a similar reduction in the volume of goods imported The export trade encounteed a period of slightly lower price levels, hut this was more than compensated for l>y a splendid increase in the volume of production. In this connection the bulletin raises a most interesting point, which probably will appeal to the Government Statistician, and any statement by him would lx; welcome. The bulletin asks to what extent the increased production has been due to the adoption of better methods, and similarly, to what extent depression has limited local consumption of primary products, thus making a larger quantity available for export, Crcnleplly speaking, the note of

the bulletin is one ol warning, for while it is admitted that the outlook has improved, it is observed that tho jieriod of depression through which the country has l>een passing has resulted in “an accumulation of liabilities which have to be met before normal purchasing power is restored.’’ The course recommended to ensure complete restoration is a continuation of the policy that has effected such marked improvements during the past year. There must be an excess of income over expenditure; in other words, our exports must exceed our imports. There must be a national and individual policy of economy on the one hand and a determined effort to increase production on the other. The position has been strengthened by the improved price level ruling for some of our most important items of export, particularly for wool, and those in close touch with the consuming markets do not hesitate to predict the continuance of a strong demand for the raw material. 'l’be favourable trend of business last year lias increased the purchasing power of the community, and there appears to he, in I lie minds of the compilers of tho bulletin, a fear lest the country should repeat the mistake of two years ago and make such heavy purchases abroad that the balance of trade would again he against the Dominion. “The events of tho past two. years,” it says, “have shown abundantly the depressing effects of an unfavourable trade balance. They have shown, too. how the favourable balance can bo won by steady economy and concentration on production.