WELLINGTON NEWS

Hokitika Guardian, 21 August 1928, Page 4

WELLINGTON NEWS

TRADE RETURNS. (Special to “ Guardian.”) WELLINGTON, August 17. The export and import returns for the Dominion for the month of July were released by the Customs Department last week and the figures showed continued favourable results. For the month the exports amounted to 4.3,355.021 as compared with £2,030,074 in (he corresponding month of last year, and the imports totalled £3,(Stitt,27(5 against £3,294,700, so that there were increases under both heads. It is usual at this time of the year for imports to exceed exports, because there is comparatively little produce available for export, consequently the imports exceeded the exports by £310,353 against £318,824. Taking the figures for the seven months ended July 31st the exports amounted to £41,017,195 against £33,523,313 in the corresponding period of last year, and the imports totalled £24,581,970 against £25,450,500. There was a big increase in exports and a relatively small shrinkage in imports, the result beign that the exports exceeded the imports by the very large sum of £1(5,489,217 against £8,072,813. But the figures for part of a year give little indication of the true results and therefore a year’s figures arc much more satisfactory. For the year ended July 31st last the exports amounted to £50,044,234 as compared with £45.889,357 in the previous year, while the imports totalled £43,914,422 against £47,145,880, and the result was that the exports exceeded the imports by £12,129,812 as compared with an excess of imports over exports of J£ 1,256,521 in the previous year. Thus on the year’s showing we improved our position by £13,380,000. This surplus enabled us to pay off what was owing on imports for the previous year, discharge our interest payments on account of the public debt and then to have a balance for domestic requirements. On the trade figures the country should be enjoying a large measure of prosperity, but that cannot be said to be tbc case with so much unemployment current and several of our industries depressed. The coal industry is obviously experiencing a hard time, for a West Coast coal company has recently been obliged to curtail operations and a number of workers have been dismissed to swell the ranks of the unemployed. In the Manawatu the flaxmillers are unable to resume operations because the current prices of New Zealand hemp leaves no margin of profit. There is said to be distress among the mill workers and the Charitable Aid Hoard lias bad to come to the assistance of some of them.

If the mill-owners could reduce their costs of production which would enable them to compete with foreign fibres they would no doubt gladly set the machinery going. They have, however, to face ‘‘award wages” and while most of the men arc willing to meet the employers the Union officials, it is alleged, are placing obstacles in the way and they are fortified by the diction ol the Arbitration Court. It is obvious that the question of wages adjustment will have to be faced if we arc to have stable conditions. So far we have relied on high prices, high prices lor wool, butter, cheese arid frozen meat, but (lint cannot continue indefinitely. MONEY IN AUSTRALIA.

State interference in the money market through the operations of State savings banks is held largely responsible in Australia for tiie monetary stringency that lias been experienced in Sydney and Melbourne, for some time past. It is through their respective savings hanks that N.SAY . and Victoria .operate their long term credit schemes. The figures of the Rural Credit Department of the State Savings Rank of N.SAY. for June show that it has accumulated £2,048,532 as current account deposits and £5,851.133 as fixed deposits. Its advances, loans, etc aggregate £11,9 t0.0.-'O, the balance i C funds required to provide accommodation for its customers have been obtained from capital raised bv issue of debentures and stock.

The Savings Bank in effect engages in the business’ of an ordinary cheque bank. It is realised that it is impossible for a state institution to attract to itself nearly eight million of deposits without asserting an effect on the credit position in N.S.W. IV e know that when the New Zealand Post’ Office Savings Bank attracted deposits by allowing interest on large deposits at call the trading banks were obliged to raise their rates and so brought about deni money. Complaints of financial stringency are said to be as widespread in Victoria as in Now South Wales.

Despite the operation of rural credit banks, country people are reported to be dissatisfied with the terms on which they can finance tlieir business dr borrow either on short .or long terms, in fact the hope of'cheap money has not been realised. They have laded to understand that to attract fixed deposits the rural credit bank must offer as high a rate off interest ns could be obtained elsewhere. In the same way when capital has to be obtained by the issue of bonds the governing condition is the market price of interest.