WELLINGTON NEWS

Hokitika Guardian, 25 January 1929, Page 2

WELLINGTON NEWS

TRADE OF 1928

[•Special To The Guaudian.]

WELLINGTON, January 23. Tl>e Trade Returns of the Dominion for 1928 are very satisfactory in that they continue to show a trade balance substantially in our favour. The exports for the year aggregated £56,188,481, an increase of £7,692,12" «n the figures of 1927 and this is very gratifying. The imports for the year totalled £44,886,266 against £44,782,946 an increase of £103,320. This also is very satisfactory,'‘and the result of the year’s trading is that wo sold to overseas countries £11,302,216 and we are so much to the good, or rather that is the visible profit made on visible exports and imports. There are a great number of invisible items on both sides that must be adjusted before itlie true balance can be reached,‘and there is no satisfactory means of ascertaining those items.

However from the comparative large supply of credit in the Dominions it is not unreasonable to believe that when all adjustments are made the balance in our favour is still considerable. The increase in the exports at £7,692,127 is equal to approximately 15J per cent, it is hardly likely that we will have a further large increase exports for 1929 notwithstanding that in some lines of export there is increased production. In the figures for 1929 three months exports for the season 1928-29 are included, i;for the produce year ends on September 30th.

Taking the three months October, November, December, the exports are valued at £10,519,555, ns compared with £10,489,666 in the corresponding six months of 1927 the increase being ‘only £29,899. If there is any serious fall in prices for our main products the year may easily show a decline in the value of our exports. But there seems little chance of that, for the output is greater. The wool clip is larger and there is no risk to that and our exports of frozen meat should be larger. So far there is an appreciable increase in daily produce, but it will be unwise to indulge in too much optimism regarding dairy produce because of the errati weather conditions prevailing. However, if the increase is ever so small it will be satsfactory, for 1928 is a record so far.

As already pointed out the excess ’of exports over imports for the past year is £11,302,215, which is stated puts the Dominion in possession of ample funds, and yet the country has been called upon to relieve tlie unemployed, and it is very evident that there will be another call on the general public for the relief of distress. We have plenty of money to employ all the workers in tlie country and yet there are plenty of workless people and the number will increase, as the winter approaches. This is an economic problem worthy of close investigation by experts.

If those who possess spare capital would use such capital in enterprise or in some other way exploit the resources of the country there would he no unemployment, but the owners of this capital prefer to accept the comparatively low interest rates allowed by the banks on fixed deposits rather than run any risks by investing the money themselves. The position has not always been such; we have not witnessed such peculiar economic conditions before, and it is therefore desirable that the matter should be investigated, and it is the duty of the Government to immediately institute a thorough inquiry. It is the opinion there is a general want of confidence, and if that is so it is very desirable to find out the cause so that remedies can be applied.

LONDON WOOL SALES. The London wool sales will close on Tuesday next, January 29th, but in the meantime it is to be noted that all sections of the trade have been operating, and particularly the Continent, the opening rates for greasy merinos and crossbreds are being barely maintained. Writing at the close of the November-December sales, Messrs H Dawson and Sons and Co. Ltd. stated that the position of crossbreds *s unsettled. Home manufacturers were not yet enjoying good time,s although in the woollen section some improvement is reported. It is, however, a “between season” period, and both merchants and manufacturers are apparently ultra-sensitive regarding possible fluctuations of the raw material. Tlie position as regards supply and demand appears to be more equably balanced than for some y« ars past. Taking the principal sources of production, Australia, New Zealand, South America, South Africa and the U.S.A., it becomes evident that the supplies will be more than equal to those of last year. The demand at present appears to he normal -red steady—without any signs on the horizon, either of a boom or a collapse.