WELLINGTON NEWS

Hokitika Guardian, 13 August 1929, Page 2

WELLINGTON NEWS

EXPORT VALUES.

. (Special Correspondent.)

WELLINGTON, August 10. » The Hon. J. Craigie in the Legislative Council to the export prices of primary products in 1924 and • 1914 j and |hfs'%etailed figures dis-i closed the fact Ihat current prices have resulted' in the Dominion having about £18,000,000 : more than:' it would have received in 1914 at the prices then ruling.’ It is the opinion of many people that the war* upset, all previously held economic theories-.'; It is believed that high prices, hi'ghAfvages and high cost of production; have- come to stay and that we will never go bapk to the prewar conditions’-. The ! only thing that appears not to have is the practice and theory of banking. Mr (Jraigie’s figures, which are not new, for similar comparisons have been made in previous years, show that compared with 1914 the production of butter has increased by 285 per cent hav-

ing risen (from 406,654 cwt to 1,567,392 1 cwt. for thevyeat ended", June 30th last. If this increased production was sold at the prices ruling in 1914 we would have received for our export of butter £8,470,000, but instead £12,745,000, chetfee shows a similar Increase, that is production expanded by 113 per cent, and) yalues increased by nearly £2,000,Goo,’ these’-two commodities being responsible for £6,000,000. or about* onethird of the total increase. The export of frozen mutton declined by 21 per the figures being ;1,226,611cwt against 961,247 cwt, yet owing to im-

proved prices the smaller-quantity exported realised £1,940,000 as compared with £1,474,000 in 1914, an increase of 32 per cent. The output of wool shows an increase of. 19 per cent and the realisation was £15,923,000, whereas at the 1914 prices the realisation would have been £9,833,000, an increase of over £6,000,000, nearly,as much as the increase in butter and cheese shown together. Besides the decrease jn output jshown j n frozen mutton there were decreases in sausage skins 18 per cent, hemp 43 per cent, 'kauri gum 53 per cent, and sawn timber 48 per cent, yet all these items except kauri gum and gold realised more money than in 1914 owing to higher prices. The total realisation qf the primary products exported for the year ended June 30 last was £51,076;522, yet if that produce realised the prices that were ruling in 1914 the total would have been £33,177,000, 1 a difference of about £17,899,000. Because of the higher prices that have ruled during and since the war, land values are higher, and those higher values may be held to be warranted so long as produce prices' are maintained at a high level. But if prices decline then present day values of land and other things,'including the cost 'of labour, must be. adjusted to meet the changing conditions. .The adjustment will be stoutly resisted, but

economists inform us that it is inevitable. The world’s money markets are

even how disturbed. There is an increasing scramble for gold which is the basis off the credit structure, and this in itself indicates that we are- entering upon a period of dear money. Whett; money goes up commodity prices go down and money will become dearer in the principal money markets of the .world. . The Bank of England has made a great effort not to raise its rate and has, succeeded temporarily. If the Bank rate is raised as some think it is inevitable then our produce prices will decline in the coming season and the returns will be less and purchasing power will shrink causing dullness in domestic trade. ‘ , I RAILWAY TRANSPORT. '

For; a great many years railways furnishedithe most reliable and quickest of transport facilities, but the advent of mdtpr transport has reduced temporarily.iat any rate, the full value of railways, and tlie development off air transport threatens further disorganisation- of thb:'railways. • But railways ,will . not be displaced by the newer forms of transport, any more than gas has, been displaced by electricity. Rail-ways,-however, are best managed by private enterprise for wherever they fare managed by the state they are unprofitable and too often inefficient. It Ss the same thing with sea transport and the heavy losses incurred by the United States, Canada and -the Commonwealth of Australia are cases in point. The Maui.Pomare which was 1 secured by a previous Government for ,the island trade is another instance. In respect to' New Zealand railways the Minister for Finance has decided to Write off £8,000,000 which is all he can do in that way for the rest of the capital copt cannot be written off because it represents borrowed capital. The amount written off, has been secured from past surpluses, that is from the taxpayers. Further railways are to be built and building costs just now are inflated. Has there ever been a time in the.history of New Zealand railways when -they paid their way let alone yield a profit P There is no probability that there will be any change in the future and the taxpayers will have to pay the deficits as they have in the past. When a private concern loses money, year after year it is soon wound up. New Zealand railways should be sold to private enterprise who will do better- witli them than can any Government.