The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, AUGUST 1, 1929. IMPRESSIVE FIGURES.

Hokitika Guardian, 1 August 1929, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, AUGUST 1, 1929. IMPRESSIVE FIGURES.

ot the reasons why business in the Dominion is quiet, considers the Lyttelton Times, is shown by figures relating to the imports of motor vehicles. The quietness of trade persists, despite the fact that there has been an abundance of money available from the sale of our primary products overseas, and the problem is one which the authorities must regard seriously. The dutiable value of motor imports in the first half of the current year exceeded =&-*,COO,OA) a iigure, however, that has been greater in more than one corresponding period in the past. The point most likely to impress the authorities is the fact that the bulk of the trade is with countries that sell us much more than they purchase from us. Quite apart from the expenditure of the huge sum involved, is the important consideration of the direction of trade. Last year, for example, Few Zealand imported from the United States goods to the value of £B,203,000, but exported to that country goods valued at only £4,200,000; and the value of the Dominion purchasers from Canada totalled £3,260,000 while the exports to the Canada were of a value of ±/2,470,000. The trade with the United States represents an adverse balance of nearly £4,000,000 and the effects are more far-reaching than is generally understood. For one thing, the financial settlements probably go through London, and so add their quota to the difficulty experienced of maintaining the exchange rates at a sound level. It may be conceded that, in these days, motor vehicles are essential to efficient and economic transport services, and to that extent the expenditure on automobile's is readily justified. One may go further than that, and admit cheerfully that a reasonable expenditure on luxury vehicles admits of a sound defence. The point,. however, is that the present trade in motor vehicles is badly uirected, in the sense that too . large a proportion of it represents a s. loss of wealth to the Dominion, and motorcars are notoriously a rapidly depreciating asset. We might even add to the loss an undetermined but, undoubtly large amount representing idleness or wasted time induced by the possession of pleasure cars, a' subject on which everyone conversant with the facts expresses grave concern. However, the interesting feature of the figures published is the diversion to a non-British country of the trade that could, and should, be held within the Empire. The explanation, of course, is that for many years the only cars suitable for colonial conditions were produced in the United States, and the Americans were able to secure their hold on the trade because British factories, during the war, were diverted to other purposes. The 'effect of preferential tariffs has been to encourage a large trade with Canada, which handles cars of a similar type to the American, but nearly 50 per cent, of New Zealand’s motor business still goes to the United States, and it is scarcely within our power to change the conditions. It has been a case of business initiative to meet a demand. The best hope of those who desire to see the motor-car business of New Zealand predominantly British is that the significance of the figures will not continue to be lost on Britisl manufacturers.