WELLINGTON NEWS

Hokitika Guardian, 6 February 1931, Page 7

WELLINGTON NEWS

THE TRADE RETURNS. (Special Correspondent.) WELLINGTON, February 4. Tlie oversea trade for the year 1930 of the Dominion slioavs that, compared uitli 1929, that there lias been a decline both, in exports and imports. The exports amounted to £44,940,692 against £00,579,066, a fall of £10,638,3/1. But the export figures for last year cannot be accepted as true although they are correct from tlie point of view of the Customs Department. Values are based upon those ruling at the time of shipment, and as there tvere falling markets all through the year, produce on reaching the terminal market failed to realise the price at Avliicb it was valued at the time of shipment. Even allowing for this the fall rvas over 20 per cent, compared with 1929. The imports also declined but the fall is only half that shown by the exports. The imports last year amounted to 643,025,000 as compared with £48,797,977 in 1929, a shrinkage of £5,722,063, or about 12 per cent. The excess of exports over imports last year was £1,914,778, as against an access in 1929 oif £6,781,086. It is satisfactory that there is an excess of exports but the. total is too small to gloat over.

Apart from, imports there is a big interest bill to be paid in London each year, and this bill is expanding because local bodies have incurred debts outside the Dominion.

What the total of the interest bill is is a matter of conjecture, in tlie absence of definite official figures, but the total cannot be less than about £8,009, 000 and our exports have provided less than £2,000,000 towards this amount. The balance must be covered by loans either by the State or by local bodies or by both. For the seven years to the close of 1930 our exports aggregated £368,354,488 and our imports in the same period totalled £332,366,676, showing an access of exports of £35,98/,812, and in those seven years ive borroAVod at tlie rate of more than £5,000,000 a year.

We were able to pay our debt seiwice abroad and have a considerable amount left over for extravagance Avithin the Dominion. Now avo have a neAV set of conditions to face. We must continue to pay the interest bill and we are receiving less for our export products. Income, both public and private, is contracting and additional taxation seems inevitable. The Goa'eminent Avili no doubt again go on the London market for £5,000,000 or £6,000,000, and it would not be surprising if the loan av«s. not kindly received notAvitilsnnditig that our credit is good, The madness 'displayed by Australian politicians is bound to adversely affect N.Z. as it has already done,and the Govermnebt muy be obliged to issue the loan at a stiff discount.

The contraction in trade, the shrinkage in public revenue and private income, with the concomitant of increasing unemployment calls for drastic economy. Unfortunately this economy calls for a reduction in Avages which of course is strongly resisted by the Socialistic Party. Even if avc could get produce prices to move up a little it Avili still be necessary to adjust costs, for our present costs are based on the high prices ruling in 1929. It is beyond our power to bring about an improvement in the prices of our export products for those prices are determined by the buyer. Britain is struggling Avitli over 2,000,000 unemployed and a socialistic Government. It lias been proved by statistics collected by the League of Nations that tlie volume of trade of the Avorkl is greater than 1913, but the Avorld is buying less from Britain than before th ewar, because she is being undersold by her competitors Avltose costs are loAver. The British have been endeavouring by rationalisation and other methods to reduce costs, but lias not succeeded in doing much in the Avay way of reducing wages, and the costs of government is still excessive. The resistance offered to the reduction wages is illustrated by the present trouble in the Lancashire cotton trade.

Some months back suggested placing eight looms under one operator for the production of plain piece goods. This was agreed to by the union interested and the employers found tlie schema satisfactory. They decided to make the scheme universal but the union objected, hence the strike until Britain's export trade improves and more of her Avorkers are employed, there is little hope of prices for our produce improving. It A\-ould be a mistake to to believe that the slump has come to stay. The progress of N.Z. cannot be held back. Wo Avili enjoy prosperity again, but lioav long or lioav short a time it will be in coming depends upon ourselves. We must correct the mistakes of the past and one of those mistakes is inflated A'alues.