WELLINGTON NEWS

Hokitika Guardian, 23 April 1929, Page 2

WELLINGTON NEWS

FINANCE AND TRADE,

(Special Correspondent.)

AVI-1 ISLINGTON, April 20

The dose of the March quarter which sees the b:i hi period for the natioiiiil finances invariably brings a flood of facts and figures which provide the statistical information on which to base opinions and from to learn useful lessons. "With respect to the Dominion’s finances according to the figures furnished by the Prime Minister, the year has closed with a deficit of approximately L'ddH,()!)(). 01 course the present Government is not to blame for this result for if lias been bound by the estimates of its predecessor, still Sir Joseph "Ward is generous enough to point out that while Air Downie Stewart, the late Minister of Finance, forecasted a halaneed budget, but at the" same time expressed doubts as to the difficulties of accurate estimating.

There has boon a shrinkage in Customs of £302,000, and in income fax of .•C59.000. The former should have been more closely estimated, but probably the authorities were obsessed with the idea that because there was a big favourable trade balance a year ago that, therefore there would hi* an expansion in the imports of dutiable goods. At tin's point a digression may be permitted to call attention to the fact that the preparation of the country’s finances is not carried through with celerity.

The financial year of the "British Government closed on March 31st last, the same as ours, and while our Prime Minister can. only Kirnisli us with preliminary figures the ( haiicellor ql the Exchequer delivered his Budget in the House of Commons on April l’>lli, and the British Budget dealt witli huge figures. This is ji rolled ion on oin Treasury officials, who. no doubt, could expedite the publication of the figure's were they authorised and instructed to do so. Ho much for the finances of the country.

With respect- to the overseas* trade of the Dominion tlie figures are extremely satisfactory, am! lor lliis great credit is duo to tie 1 primary producers. Tlio exports for the year ended .March Ji.lst, 19*20, totalled Cd 7, Id l.d Id as compared with £d1,9(>2.(!d1. an increase of £2.192,812, which is very pleasing to note, more especially as if lollops a year which showed a big advance over ils predecessors, lor 192 s showed an increase of £9,279,908 over 1927. The imports lor the year ended March 81st last amounted to C10.100,Sfiy as compared with £44,419,d07 in the previous year, an increase of •£(>80,d()8, which is a very small growth. Xow when we examine the halance ol trade the position is very encouraging and naturally gives vise to many hopes whieh may or may not he realised. For the year just .closed the exports exceeded the imports by the substantial sum of £12,(418,478. in the previous year the excess was C,10,d 12,(>74, hut in 1927 the imports exceeded the exports by £2,510,3.12. and in 192(1 the excess of imports amounted to #1,828,209

There lias boon n remarkable recover v since 19"27, and it can lie said Unit the trade position of the Dominion is satisfactory. We have experienced two good years, and the question is can we hope for a continuance of this. It habeen the experience of the past that two good years have been followed by a trade setback, hut it docs not necessarily follow that the experience will he repeated. In the past a good export year has been followed by a year of expanding imports, hut there is no indication of such a movement just now. The fact is that for some time past, there has been a lack of <onhdencc, people" have hoarded their money instead of investing it in enterprises, and this lias been one ol the factors contributing t'o unemployment. It is hardly probable that importers •will repeat mistakes of the past and over import, and thereloro it is vei\ probable that the overseas trade ol the current year will disclose a levourable balance. It would, however, bo unwise to expect a continuation of high prices for our primary products lor. a--1 lie Chairman of the Wellington ( lmmber of Commerce stated a day or In ago “ World factors are not to he disregarded in their effect upon Dominion 'conditions, and I would like to drr.n your attention lo statements by au .'iorities of the falling general level o' prices throughout the world where New Zealand level of costs and prie have shown little downward trend.” While the linaiiees and trade ol tuc country are healthy and sal i .larl:or> unemployment remains a stubborn problem, which shows that there is a linn somewhere in our economic labile. Local costs are too high, and that is 1 he cause of the problem, when a means of reducing costs is discovered unein ployment will cease, hut the discovert has yet to he made.