OUR EXPORT TRADE.

New Zealand Times, Volume XXXIV, Issue 5710, 18 July 1879, Page 2

OUR EXPORT TRADE.

New Zealand is dependent for her wealth upon her export trade, find unless the value received for the wool, grain, and other products sent away, is such as both to repay the cost of production and to cover the interest upon the capital invested, the prosperity of the country must decline. The enormous increase in the production of articles of general consumption, which has taken place during the last decade, has completely upset the equilibrium of the chief markets, and the present depression in trade and remarkable alteration in values throughout the world are heldtobe largely due to this rapid increase iu production. New Zealand wheat has to compete with grain • from the States, from South America, Russia, Australia, and elsewhere. The quantity of grain grown in this colony during the twelve months ending February, 1879, was nearly twice as large as during the previous year. Despite this fact there was, however, a decrease in tho quantity of wheat grown, and only a very slight increase in the area sown in wheat. We believe that there can be but little doubt that New Zealand is naturally less adapted for supplying the rest of the world with wheat than many parts of Australia or than the Western States of America, and we are not therefore inclined to view the check which that industry has received in the light of a misfortune ; but it is evident that wheat growers have discovered that the game does not pay as well as oat-growing for instance. The industry has come to a standstill, and other countries are evidently driving us out of the market. When we state that the export of wheat from the United States has increased from 31,000,000 bushels in 1860 to 96.000. bushels in 1878, the rapid decline in prices will cause but little surprise. The whole of New Zealand only produced 6,000,000 bushels of wheat last year, so that our export trade of wheaif is, comparatively speaking, unimportant. After being so severely nipped in the bud it is, in our opinion, unlikely to expand. It would bo interesting to enquire whether this check to a young industry has been caused by the high price of labor or not. Turning to the wool growing, upon which the prosperity of New Zealand chiefly depends, we desire to point out that the United States threaten to become, if not rivals in the trade, at all events self-supporting ere long. According to the New York “Daily Bulletin,” the home-clip in tho United States amounted to 211,000,0001bs in 1878, showing an increase of 3,000,0001b5. in tho year. There was a falling off’ of 14.000. in the production of California, but this was covered by an increase elsewhere. The imports.into the States during 1878 amounted to 34.000. as against 47,000,0001b5. in the previous year. But for the exceptionally bad season in California in 1878, the United States production would have shown an increase of some 17.000. or more than half the total imports. In 1872 the import of wool into the United States amounted to 98,000,0001b5., and in 1871' to 78.000. consequently the falling off since then is very considerable. Of late years the average increase in the quantity of wool exported from New Zealand has varied between 5,000,0091b5. and 6.000. a year. In 1875 the apparent increase in the quantity exported was more than 7,500,0001b5., but this was iu some measure due to the fact that the practice of shipping wool home in the grease, i.e., in a heavier, dirtier condition, was then coming into fashion. The home consumption of wool within New Zealand is as yet but small, nevertheless the existing factories already consume enough of the raw material to exercise an appreciable influence upon the export returns; consequently the real increase in production exceeds that shown by the export returns.

From what we have written it is evident that New Zealand and the United States between them have been placing an enormously increased quantity of wool upon the world’s market yearly. In wheat growing the statistics of New Zealand prove that our farmers have taken fright, and have gone into oats and grass growing instead. It is just possible that the Yankees may shortly compete with us as wool exporters. In eight years their gross production has increased by 48,000,0001bs.; within the same period the New Zealand production has increased by 27,000,0001b5. Such figures as these offer foodf orreflec tion. We have no desire to act in any way as alarmists ; it is our firm belief that as a grazing and wool-growing country this colony need not be afraid of any competitor, but it is necessary that the conditions should be nearly equal. A New York journal observes that “ while wages'have “ declined throughout the country, and “ are in some branches of industry “ lower than in dfreat Britain, they are iC still practically higher than they were “ previous to the period of inflated war c ‘ values, when considered in connection “ with the cost of living before that time. “ A further reduction of wages may ‘ ‘ therefore be looked for as the result of “ a return to specie payments.” In England the price of labor is lower than it has been for years. Both these countries are keen competitors- with New Zealand as growers of wool for the world, and at present have one great advantage in the difference of the price of labor in their favor to set against the disadvantages of climate, &c., with which they have to contend. Practically the New Zealand farmers have admitted that wheat growing does not pay ; dear labor, land taxes, and heavy rates are enough to handicap them very heavily as wool growers also. So long as the profits .are large, wages may be high; but if when profits are small, wages do not come down, capital will ere long be withdrawn from the business, and the goose which laid the golden eggs will die a lingering death. In a future article we hope to devote some attention to the price of labor in connection with the cost of living ; a question which is inseparably connected with the cost of production, and one upon which our colonial prosperity really depends.