PRODUCTION AND INDUSTRY

Otago Witness, Issue 4032, 23 June 1931, Page 34

PRODUCTION AND INDUSTRY

A COMPREHENSIVE REVIEW INCREASED EXPORTS ESSENTIAL. At the annual meeting of proprietors of the Bank of New Zealand in Welling ton on Friday, the chairman (Mr William Watson) in his address dealt exhaustively with production and industry in New Zealand. Mr Watson said:— It says a great deal for the energy and diligence of the vast majority of the people of New Zealand that, despite the discouragement of low prices for exports, lower purchasing power for manufactures, and high taxation, there has not been much falling-off in the national activities as a whole. The values of the imports and exports for the five years ended March 31 compare as follow: —

When the overseas interest on public and municipal debt, calculated to amouri to oyer £8,060.000 per annum, and the invisible payments for services are taken into account, it will be seen how important it is to have larger surpluses of exports. From these figures it will be noted that imports from overseas have ranch decreased as compared with the year 192930. This is a commendable feature as previously more in the nature of luxury goods were imported than the Dominion, taken as a whole, eould well afford, and stocks were too extensively carried. Facilities for obtaining goods induced superabundance of retail shops, rendering it difficult for those previously established to make reasonable profits at fair prices, and also encouraging unnecessary buildings and high rents. In consequence, several towns were overbuilt, causing aftermaths of depression in these places which will take time to rectify. Manufactures have been well maintained in goods suitable to the people’s require ments. The general depression has caused less turnover by manufacturing concerns, and consequently less profits and dividends, but no less than that was expected from the universal position of affairs. Owing to market prices for produce averaging lower last year than in the year previous, the quantities of exports compare larger in proportion to values. The comparison of quantities with values for the two financial years is as follows:— 12 months ended March, 1930. Value.

Dairy factories have continued to extend their operations, and improvements and developments have taken place on many farms. Meat freezing companies were not generally successful during the past year, as the prices paid for live stock were too high at the beginning of the season. Some changes which will avoid overlapping and reduce expenditure have been made, and it is expected that, notwithstanding the low prices in Britain, better results will be effected this season.

Wool prices have been extremely disappointing—so much so that many who could afford to do so held their clips back from sales or shipment. It was considered that when at the lowest price last summer wool was much below cost of production. Since then values have risen, and it is hoped that they may soon return to paying point.

Droughts have been severe on the east coast of the North Island, and in many places cattle had to be removed, while sheep and lambs were difficult to fatten. Timber milling has, in the main, been conducted at a loss, owing partly to diminution in building, partly to exchange rates in exporting to Australia, and to the conditions prevailing there, and partly

to high costs of production as compared with othei countries. The great y lowered prices and leaf disease have rendered flaxmilling non-pay-able. The land suitable for flax growth is, however, of the richest grade, and. when properly drained, excellent for dairying, cropping, anil fattening so that lt s - U u e c J* n be profitably availed' of, and i this has been done in several large areas. Irz , e total export of apples from New ! tbe "■ hole ' a st season was 1.331,8,94 cases, while the total exports t°r the Present season are expected to be 1.384,000 cases. To achieve greater prosperity must be the practical endeavour of everyone in the Dominion, considering well how we compare with other countries The land being the basis and source of welfare in the Dominion, it is to the interest of everyone that the best should be made of it. But for it there would be little to do for anv of us. The Government recognises the importance of retrieving the productiveness of abandoned farms, and is doing something in that direction both to improve the land jnd to afford employment, but without further borrowing their efforts must needs e limited Owing to the low prices for last season s output, many farmers have not the wherewithal to acquire the fertilisers necessary to improve and maintain. the quality of their soils, and it regts with bankers, stock and station agents, and mortgagees to help them. Tins bank is straining its advances to its own customers for the purpose. In comparison with the years before the war, farming costs are so high that they, combined with th° reduced prices, prevent the majority of farmers from carrying out their operations profitably, but there is hope that conditions will ?oon arise which will bring about a favourable change. There has been verj- little demand for land, either urban, suburban, or rural, and indications are that sales can only be effected on what will be the future bases of values. For many years warnings have been given from this chair as to land values being inflated bevond all reason, but little attention was paid thereto.

The period of recovery from the existing depression will no doubt be slow and full of hardships, yet that’there will be recovery, though not perhaps to the standard of recent years, may in the light of past experience be confidently counted on. The earth and the seas are bounteous, and the affairs of men in any free country are in their own hands to make or mar. Perhaps it will occur to all of you here that better might have been done in the past by the people of Australia and New Zealand for themselves and their descendants. By wiser action and living within national means, better times will assuredly come, and the sooner the action the sooner the result.

Imports. £ Export®. £ 1927 .. .. 48.192.670 45.682,338 1928 .. .. 44,419.357 54,962.031 1929 .. .. 45.105.865 57.154.343 1930 .. .. 49.167,914 49,045,817 1931 .. .. 38.300.807 39.527.784

Butter (cwt) .. 1,599,397 £ 12,022,330 Cheese (cwt) .. 1,618,537 6,180.213 Wool .bales) 603,260 10,610,979 Lamb (cwt) .. 1,948,777 6,901,305 Mutton (cwt) 978,959 1,988,370 Fruit (lb) .. .. 40,454,531 553,843

12 months ended March, 1931. Value. Butter lewt) Cheese (cwt) Wool (bales) Lamb (cwt) Mutton (cwt) Fruit (lb) .. .. 1,841,245 .. 1,875,380 542,115 .. 2,290,710 .. 1,232,541 .. 50.366,758 £ 10,513,684 5,964,699 5,464.228 7,054,834 2,079,219 627,208