TRADE BALANCE.

Hokitika Guardian, 23 December 1929, Page 7

TRADE BALANCE.

“As to the actual values, I do not propose to give details, but merely rough figures which you can carry in mind. We import £508,090,000 of foodstuffs, £278,000,000 of raw materials, and £011,000,000 of manufactured goods and other items, a total of £1,095,000,000. Our visible exports are £732,000,000, leaving a balance of roughly, £363,000,000 on the wrong side. Invisible exports are the net balances received for interest on investments abroad, for shipping services, commissions, and . money market services, inland tourist traffic, and so on. Roughly we get £300,OJO,6>X) as interest on investments, £120,000,000 from shipping, and £BO,000,000 for the balance. That brings us to £137,000,000 on the right side, which is the balance available for investment abroad. I am glad to say this balance has increased during the last three years from nothing to this figure, and there is reason to expect that it will continue to increase. Of our imports roughly 73 per cent, come from foreign countries and 27 per cent, from the Empire, while iff our exports 58 per cent, go to foreign countries and 42 per cent, to the Empire. Now 80 per cent, of our exports are manufactured goods, so that tins importance of the Empire market with its large purchases of manufactured goods will be appreciated.

CAUSE OF UNEMPLOYMENT. “What is the cause of this unemployment? It really is the aftermath of the war. It is clear that we have not got back to tire, pre-war position. As regards our exports, we are still down by about one-sixth, and the reason is not far to seek. It is not that the British manufacturer or workman is not trying. It is not that he is not studying liis customer’s wants or wishes. It is due simply to the fact that while the. British manufacturer was turning out munitions not only for our own armies, but for the armies of all our Allies, neutral nations got into our overseas markets, and local industries have sprung up which have changed the whole economic face of the world.

AMERICAN COMPETITION. “\Vi? do not wish to squeal about it, but it would really have been a most remarkable thing if Great Britain had regained her pre-war position in the markets of the world in the light of what happened during the war and post-war period. 1 suppose that the greatest competition we are now meeting, in some lines at any rate, is from the United States of America. Prior to the war America was a comparatively small exporter of manufactured goods. Now she is practically on a parity with Great Britain, and while we are exporting over twice as much per head the larger population of the United States bring her almost up to our level. “Just a word about the existing state of trade in the United Kingdom. As I have said, wo are considerably down in our total exports as compared with pre-war. We have, however, considerable grounds for optimism, as there has been a gradual

increase since 1924 and we are now exporting about 9 per cent, more goods than we did in that year. NEW ZEALAND’S BEST CUSTOMER. “As regards New Zealand, we are, of course, easily her best customer. Wo take 74 per cent, of your total exports. The percentage, however, is steadily falling, but I feel this fall is more apparent than real. The practice of buying wool in New Zealand instead of in London and consigning it direct to the country of use reduces, of course, the amount of the export as shown in the trade returns going to the Old Country, but it does not, of course, reduce the amount of Dominion goods consumed there. As regards imports into New Zealand, Great Britain holds about 46 per cent, of the trade, compared with 9 per cent, held by the United States of America. FALLING PERCENTAGE.

“Over the last seven years the percentage of the import trade held by Great Britain has been falling, while the percentage held by the United States of America has been increasing. This is due partly to the motor trade, but not by any means entirely, and there is no doubt that New Zealand is buying increasing quantity sof American goods over a wide ran go. It is, of course, my duty to suggest t.o you that it is in your own interest that you should, whenever possible, buy from your best customer.”