WELLINGTON NEWS

Hokitika Guardian, 27 June 1930, Page 7

WELLINGTON NEWS

NEW ZEALAND TRADE RETURNS

(Special Correspondent.)

WELLINGTON, June 24. The trade figures for May were re

leased by the Customs Department last week and the department deserves credit for promptitude, for there have been occasions when linger periods

have eiapsed before the monthly figures were issued. The Customs Department has only issued the figures for May, and it will probably be anothei fortnight before the Monthly Abstract for May is issued containing the details. With the end of May eight months of the produce year have closed and the figures are not very cheering.

The exports for the period amounted to £35,963,664 as compared with £44,153,321 in the corresponding eight months of the previous year, and there was thus a contraction in the exports of £8,189,637, equal to an average ol over £1,000,060 a month, representing a decline of nearly 20 per cent, which is a matter calling for serious consideration. Most of the shrinkage has occurred this year, the exports for the five months to the end of May being £26,139,380 a® compared with £33,633,767 in the first five month® of 1929. a decrease of £7,594,387. The decrease is mainly but not entirely due to the fall in values, the hold l over of oui wool, butter and meat have made the totals look smaller than is warranted. The hojd over of fleece wool alone approximated to £1,000,000. The imports for the eight months amounted to £31,637,022 as compared with £30,956,849 in the corresponding terms of the previous year an increases of £650,133. This is a very small increase, but it will be found that when the trading year ends oil Sepitera'ber 30th that* the imparts are down. As a matter of fact for the five months of this year they show a very small increase, the figures being £19,163,459 against £19,112,078. Imports)'! cannot curtail imports suddenly, for the reason that they are obliged to place their orders six months in advance. Orders placed early this year have been on a reduced scale and the effects will be disclosed in the succeeding months.

Our exports are still well ahead of our imports, for the eight months the excess is about £4,300,000 while for the 1 five months of this year the excess amounts to the satisfactory sum of £G,&JO,OOO, and as the Government borrowed £5,500,000 last month and one or two local bodies issued debentures, so that a,s far as our outside . uKligariens we .concerned we have nothing to worry about. Assuming that import® are cut down 'by a million sterling Jby September 30th. and there is satisfactory excess of exports over imports that will not bring any great measure of local relief, on the contrary our burdens seem likely to increase for we can have no doubt about there being extra taxation. It will not bring any relief for unemployment, indeed increased taxation is more likely to accentuate it, for out of lessened income derived from exports, we will have increased taxation, and increased provision to be made for unemployment. a here will be less to spend because of the double hit of smaller income out of which more is to be paid to the taxgatherer. Such a position cannot be regarded as helpful to solving the unemployed problem.

Our polit ia»s and some of the alleged economists and financiers who-are advising them are steadily driving the country into a serious position because they have not the courage to face the situation. The export products of the Dominion at the present ruling prices every probability that there will be a further .recession following upon the yield little or no profit and there is serious drop in the value of Stock Exchange securities in New York and the general fall in world commodities such as cotton, wheat, cotton and rubber, many of which have gone below prewar levels.

If produce prices fall lower and the national income is further reduced through this and imports are again reduced will the Government pile on more, taxation to meet the situation? It is useless expecting prices to recover. for confidence in the world economic position is shattered and handto mouth buying ,of commodities is inevitable. Our duty as a nation and as individuals is to exercise economy by cutting out all waste and extravagance and doing everything possible to reduce costs of production. If that is accomplished present) ’prices will vickl a larger profit and there will he more money to spend in the development of the country. Members of Parliament, last session voted themselves £100; will they return that money this session ?