The Guardian And Evening Star, with which is incorporated the Went Coast Tunes WEDNESDAY, DECEMBER 21, 1932. DOMINION EXPORTS.

Hokitika Guardian, 21 December 1932, Page 4

The Guardian And Evening Star, with which is incorporated the Went Coast Tunes WEDNESDAY, DECEMBER 21, 1932. DOMINION EXPORTS.

Some interesting figures are available in the official returns of overseas trade for the eleven months' of 1892 which have veen announced. The increased production for export lias more than counterbalanced -the decline in prices during the- paat year. Expressed in New Zealand currency the value of exports is higher by £1,880,000, and iiir.ee costs of production, have certainly been lower, the .direct comparison understates the improvement! There is only on© doubtful element—th© possibility that the valuations entered at the time of shipment have not been fully realised, especially in the last month op so>, and, further, that all exports have not been sold punctually. teJuich discrepancies cannot fie either avoided or calculated 1 . It would, however, be a liberal allowance to assume that tjhe elxcesks of valuation extinguishes the whole of the apparent increase. Even then, the returns would indicate that exporters have held their around while prices have fallen away. The improvement in the general trade monition is moire substantial, since there has been a further reduction in the value of imports, in which lower prices have been a factor. As a result, the apparent favourable balance is equivalent to £IO,CCd,OOO sterling—an amount greater by £3,000,C00 than the surplus for the corresponding period l in 1931 and approximately equal to the full year’s charges on oversea? public debt. In 1931, the trading balance' of over £7,000,000 was supplemented by a public loan of £5,000,030 and a considerable value of Treasury bills. This year the bulk of a loan of like amount was absorbed by the redemption of £4,C00,0C0 of Treasury bills, including three, .issued prior to 1931. Hence, on the available figures, it appears that any reduction during the year of funds held in London on New Zealand’'atoTcuiit 1 has been inconsiderable. In these circumstances it is remarkable that the exchange rate, which did not exceed 5 per cent in 1991. haiS stood throughout this year at 10 per cent. Economic influences alon® have not been sufficient ‘to maintain the disparity; In the interests of exporters and of general stability, the rate has been “pegged” to prevent an appreciation of New Zealand currency that ifi present cimimstnnces would have been undulv disturbing.