The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, OCTOBER 30, 1928.

Hokitika Guardian, 30 October 1928, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, OCTOBER 30, 1928.

INTER-IMPERIAL TRADE. Fum, space is given in the journal ol the British Boai-d of Trade to the report of the British Trade Commissioner in New Zealand, made to the Department of Overseas Trade. Comparing conditions in the Dominion at the beginning of 1928 with those of a year before. Mr Lambie, the officer-in-charge, Wellington, reports that a much brighter and healthier picture is now presented. Unemployment has been evident throughout the Dominion, due rather to domestic factors, such as a population somewhat out of balance, than to influences conditioning the rewards for the country’s principal business—the production and sale overseas of primary products. Indeed, it can be .said with confidence that the outlook for dairy products and wool—which, together, form 60 per cent, of the Dominion’s exports—is particularly good, while the meat export position is reasonably good. But brighter and sounder though the outlook undoubtedly is, there are certain features in the economic and industrial structure of the Dominion which strike the observer as being weak, and if not changed, will continue to weaken unnecessarily in greater or leaser degree, a naturally strong and sound country. New Zealand would seem to have rather everdeveloped certain sections of secondary industries. A great deal of excellent and efficient manufacturing is being done in those industries which use the natural raw materials of the country, such as woollen products, rugs, blankets, agricultural imfilements, leathers, boots, and shoes of styles not subject to quick changes of fashion, and quite a number of other lines which can be produced in some considerable volume, even though the home market does not exceed 1,500.000 in population. But there have grown up in the Dominion other industries, uneconomic mainly because of their restricted output and the small size of the market, and possibly only through the aft* 'of‘a, tariff designed at first, for revenue and gradually devolved into a protective character which in the* good

years and rising prices of the past decade have managed to exist, -but with the coming of leaner and more competitive (and probably more normal) times feel the pinch. This condition H not the fault of the worker or his employer. Workers and employers generally in New Zealand arc efficient and industrious. Strikes and misunderstandings are infrequent, and generally speaking, masters and men enjoy “peace in industry.” But even “peace in industry” will not make an uneconoueic venture profitable or desirable. The unemployment of recent years, can be traced, in some measure at least, to the weakness of certain uneconomic secondary industries. New Zealand can easily support a high standard of life—more easily than most countries—without artifxcia 1 stimulants, such as State grants, subsidies, and the like, all of which must in the long run be paid for by industry. Further., because of the material advantages in climate, productivity of the soil, and the excellent development of her pastoral industries, right from the sheep run or dairy farm to the delivery of the products to overseas markets, she can continue to pay high “real” wages in her principal and natural industries, and it is on these key industries that the genuine prosperity of New Zealand' will rest for many years to come. The general revision of the Customs tariff recently passed by Parliament accurately recognises the external trade figures over a number of years, and one result is to show that New Zealand is still easily the largest per capita purchaser of goods “and incidentally British goods.” A temporary depression, attributed to over-lavish expenditure upon luxury or semi-luxury goods, accompanied, as it was, by lower receipts for the products of the country, had its reflex in general economic conditions during the past year. The psychological effects have been good, however. New Zealand has learned that there are limits to what she can afford, a sounder and healthier tone predominates, while the satisfactory prices which are being realised for the increased quantities of the new season’s products give good ground for the anticipation of a steady revival of trade during 1928. That revival is now apparent in the later trade returns. The deputycommissioner was reviewing the figures as they were early in the year. He also shows the changes that have taken place in the destinations of New ZeaInd exports from 1900-13. every year to 192/. showing since 1921 reduced percentages to the United Kingdom, Britain, increased to Australia, and Canada', France and Germany, and to the United States up to 1926, when it reached up to. 8.43 per cent, and dropped to 5.53 per cent, last year. Increases in export percentages to France and Germany are probably to be explained by wool purchases.