NEW ZEALAND'S DEFENDANT POSITION

Rotorua Morning Post, Volume 1, Issue 8, 1 September 1931, Page 6

NEW ZEALAND'S DEFENDANT POSITION

ECONOMIC REVIEW RECURRING WANTS WILL ^ EVENTUALLY RESTORE TRADE. IMPORTANCE OF FARMING. O One aspect about the economic position of New Zealand whieh strikes one most forcibly is the great measure^ of her dependence upon other countries, states the Annual report of the Wel-^ lington Employers' Association, which'5 was presenied at the annual meeting. Gontinuing, the report quotes the Unemployment Investigation Committee's report: — "New Zealand is a small country with a comparatively , high standard of living. We produce a very large surplus of certain goods, and we are remarkably deficient in the production of other goods — for example, base metals and the heavier | manufactures. Consequently, our ex- | ternal trade is, per capita, the highest in the world, and we are proportionately less independent of other countries than almost any other people. We depend upon the requirements of other countries to ahsorb our surplus production, and upon their production to supply many of our requirements. "That is a simple statement of fact," the report continues. "It might have been added that we have also been greatly dependont upon other countries for development of our resources, that we have borrowed heavily, and have to meet the interest payments out of our general resources, beoause very liLtle of the expenditure of borrowed money has led.to the earuing of interest or sinking fund. It follows that our economic position as a debtor [ nation is unsound if the total value of our exports does not exceed the suni of the value of our imports -phm payment of interest in any year or over a period of years. The following figures disclose that the national income^has been very substantially reduced* during the past two years: —

Importance of Farming. "As oompared with two years ago, our income from the sale of exportable products has fallen by-just on eighteen million pounds, and the fall has been ■ greatest during the past- few months. Iliere is no doubt that the foundation of the whole structure of trade and commerce in New Zealand is production from the land for export. The prosperity of all other industries depends upon the prosperity of the industries generally grouped together under the term 'farming.' Every period of low prices which the Dominion has experienced has given proof of this. The farming industries are first affected ; the reduction of the farmers' purchasing power reacts upon all internal industries and depression becomes general. One of the greatest assets that New Zealand enjoys is the productive efficiency of her man power, and we look forward with hope, and trust that the near future holds brighter and better times in store. Talk of Trade Revival. "The first confident 'announcements of the long awaited improvement in trade conditions are conneeted with the British Industries Fair," the report says. "The main exhibition at Olympia, the cotlon section at the White City, and the Midlands Section at Birmingham, all proved successful beyond the hopes of the organisers, and far beyond the expectation of many of the exhibitors. In the cotton section the success was most marked, the orders taken totalling more thaq £5,000,000. This is important, chiefly because it proves that Lancashire is solving the problem which many were saying she would never solve, namely, hoxy to produce more cheaply than countries with low wage labour. In the Birmingham section of the fair, according to an expert estimate, business was initiated which will bring £20,000,000 worth of orders to the Midlands during the next 12 months. Similar encouraging reports come from the woollen industry in Bradford. Restoring Confidence. "While people generally, the world over, in constant employment, may economise for a certain period, there must come a time when new suits and clothing will require to he ordered, new furnisbings bought for th.e home. the painters hrought in to redecorate and paint the house, the motor-car louched up or perhaps a new one purchased, fetc. ' Liltewise wholesalers and retailers must sooner or later replenisli stocks. When that stage is reached it will help considerably to restore confidence and spread the trade revival further and further afield. . "The offer made by America to suspend war debt payments for a period of twelve months, on the understanding that other countries adopted a similar attitude, was aoelaimed by financiers generally, and the fact that the British Prime Minister and the ieador^ of the Conservative and Liberal parties wholeheartedly approved of Dresident Hoover's proposal for a war debt moratoxium, is an indication that the movement- is in the best interests of the British Empire and world trade. It is hoped that the resumption of the Round Table Conferencfe in September next, when representatives of India will meet British representatives in London for the purpose of investigating prohlems peculiar to India, will reaeh a successful conclusion. Chief interest attaches to the new Indian noininees who did not take part in last year's proceedings, and among whom is Mr Gandhi, who has been invited to represent the Indian National Congress. An amieable settlement of India's difficulties would have a farreachiug and heneficial effect as far as British industries are concerned, which no doubt would sQon be reflected in the ' trade of the Dominion."

Year ended March 31. Imports. Exports. 1939 .. £15,105,865 £57,154,343 1030 .. £49,167,014 £49,045,817 1931 .. £38,300,807 £39,495,707