WELLINGTON NEWS

Hokitika Guardian, 10 May 1928, Page 4

WELLINGTON NEWS

NFSDV ZEALAND’S ECONOMIC PROGRESS.

(Special to “ Guardian.”)

WELLINGTON, May 7

The “ Financial Times ” (London) issued on March 19 last a special Bankins Supplement, an elaborate publication to which bankers of many different countries contributed several articles, and articles denims with the banking position in the several countries. New Zealand was considered important enough to have a place in that Banking Supplement, and a full page article by Dir Richard W. Gibbs, who was at the time Acting-Chairman ot' the Dank of New Zealand, appears. Dir Gibbs has dealt with a variety of topics on trade, industry and hanking, and the article is of Sufficient local interest to warrant reproduction in parts. M,r Gibbs begins bv pointing out that “ prior to LS4O very little was known of New Zealand, and it is largely due to the calibre of the early pio neers that a foundation was laid upon which the present superstructure permits of the bold boast being made—--1 New Zealand, the Britain of the South.’ ”

After directing attention to the limited area of arable land, Dfr Gibbs maintains that “nevertheless, the primary producers of Now Zealand can claim to hold high rank in both the quality and the quantity of its exports.” In the early days flax was one of the chief products and gold production also was an important industry, but both form insignificant exports now. Mr Gibbs points out that “the introduction of refrigerating facilities brought the meat and dairy produce within the reach of the world’s markets and gave an impetus to these industries exceeding all expectations, but unfortunately/as Dir Gibbs observes, during tlio war the high prices of meat led to farmers’ companies and others erecting works far in excess of requirements, and many of those after making heavy losses, came to a disastrous and untimely end, leaving the more solid, better managed and chiefly the proprietary works to carry on, as before the war, the legitimate requirements of the trade.

Writing, of dairy produce DH- Gibbs says: “Last year was a lean one for our dairy farmers. The British coal strike reduced the demand considerably and falling prices led to reclamations, added to this the Control Board introduced a system of price fixation which had speedily to he abandoned to save nn already critical situation. The present season has opened with much brighter prospects. Needless to say that in a young country almost entirely dependent on its primary products siich

a substantial advance is most welcome. Wool is another of New Zealand's important products, on the price ot which the prosperity of a large number of our settlers depends.”

Amongst the industries which are all making progress, to which Dir Gibbs refers in his most interesting article, is that of forestry. Not only has the

Government taken the matter in hand

but various companies, syndicates, and private individuals are also to the lore. T'lie planting season is about twice the 102(5 figures. After referring to the exploration work of the Taranaki Oilfields. Ltd., the hanker says: “New Zealand’s secondary products do not loom large, hut, nevertheless, are

of sufficient importance to warant notice in any article dealing with the economic conditions of the Dominion.” Deferring to trade, Dir Gibbs points out that in 1922 our exports showed an excess of nearly £1 1,000,000. ibis was reduced by more than one-hall in 192 a, while in 192(5 the excess of imports over exports was over £55,000.000. For the twelve months to September 30, 1927. a period of low prices for our principal exports, there "’as a slight increase. Dealing with the banking situation, Dir Gibbs remarks: “The adverse movement in the banking figures as dis-

closed by the quarterly returns for the past two years called for a necessary adjustment in the rates of interest, an additional .V per cent being offered for fixed deposits. This position was largely brought about by Government competition through the Post Office Savings Dank and the activities of the

Pubic Trust Office to attract deposits,” and as Ihe Dfinister for Finance realises “ the influence the Post Office rate must have on interest rates generally, no doubt he will, with a view to reducing the price of money, bring about further reductions.”