AMERICAN TRADE

Rotorua Morning Post, Volume 2, Issue 224, 16 May 1932, Page 5

AMERICAN TRADE

N.Z. POSSIBILITIES - COMPREHENSIVE MARKET RESEARCH WOULD BE ' PROFITABLE POSITION IMPROVING The opinion that the country has now reached the depth of the depression, and that a definite improvment may be loolced for by the Spring was expressed by Mi\ W. A. Blakiston, saies and advertising managef in New Zealand for the Atlantic Union Oil Coy. Ltd., in an interview--with a "Morning Post" representative on Saturday. Mr. Blakiston has b§en on a brief business visit to Rotorua. * ... - Mr, Blakiston stated that although it was difficult, and in some cases ' " impossible owing to'busihessYeasons, to give detfifls to..: support"t-his assertion, there were very many straws which pointed to a 'turn in the tide. He considered that there was at present too great a tendency to aceept the unemployment barometer as -an indication of the position of the country. In point of fact, it formed no reliable indication., Unemployment1 was a problem which had always existed, but which had assurhed hitherto unencountered proportions of late years. It was true that New Zealand had at present approximately 50,000 persons out of work, but as against" this it could be remembered that England had had millioUs of nnemployed for years, and that the United States had had the greatest percentage of unemployed in the world at the time of its greatest prosperity. It Was a recognised fact that wherever there were great extremes of wealth, the incidence of unemployed was great-. er. New Zealand had not the extremes of wealth which existed in older and larger countries such as England and America, and this fact alone would assist her returh to a more normal condition of affairs. American Markets Mr. Blakiston has had a considerable experience of American conditions and stated that he considered New Zealand had so far only superficially investigated the potentialities of the States as a market. He considered that a properly organised market research should be carried out and a definite attempt made to cater for various lines which could be exnorted to America from this coufttry.. Americans were the most cosmopolitan buyers in the world, and they would buy from any country which could produce the highest grade article. As an instance, it was recognised in the States that England ijaroduced the best worsteds and cloth in the world and as a result the great body of high grade cloth used in the States was imported from England. America had such a vast population that even relatively small and lux-" ury lines could yield very large returns if properly exploited.' As an instance of one avenue in which he considered New Zealand could profitably explore the possibilities, Mr. Blakiston pointed out the popularity of New Zealand-made rugs with the Aniericans who visited the Dominion. Very many of these visitors bought New Zealand rugs in the country, for it was generally recognised that Dominion-niade rugs were of exceptionally high quality. If however, some organised attempt was made to market New Zealand rugs in America on a large scale, he considered that eXcellent results would be achieved. This was only one instance of the possibilities of development by investigating the market potentialities. Balance of Trade An altogether distorted emphasis was placed upon the adverse balance of trade between New Zealand and the States, Mr. Blakiston considered. The tremendous difference in the population of the two countiues made such a balance inevxtable, while it must be remembered that the United States was to a very large degree self supporting. It could not reasonably he expected that it would buy from other countries commodities which it could produce itself. Butter was an example. Many people pointed out that the United States did not buy New Zealand butter, but they overloolced the fact that America produced vast quantities of butter herself and that it was marlceted expressly for the American consumer. These observations, however, did not in any way detract from the force of his previous remarks regafding the possibility of developing the American market. If another country could produce a higher grade article at a competitive price, Americans would buy it. Americans had recently discovered the New Zealand passion fruit, and as a result the export of this fruit from the Dominion to the States was steadily extending. For a country with a small population stlCh as New Zealand, there was tremendous possibilities in developing new markets among the millions of the States. Money Foic Oil D ealing further with the American trade, Mr. Blakiston said that it Wds often contended that a large suffi of money was taken out of this coUtttfy annually by American oil companies. This was, however, a very loose statement of the true position. Handling and distribution costs, advertising interest on investments, and COnversion on excliange, in addition to a very large sum in taxatxon, Wete all paid in the Dominion and he VJfis in a position to state definitely that the final proportion remitted to the States to cover the purchase of the oil was relatively small. His own company when it had decided to commence opex-ations in JSTew Zealand had*1' remitted to this country one million sterling which had been used in th.e purchase of New Zealand materials and the employment of New Zealand labour. As with any essential cofixmodity controlled by a few otgariisations, the producers depended xrpon nxass production for their profits. When all other costs were paid, cigarette manufacturers received 2|d on ■ each paclcet to cover the costs of production and packing. TTxe actual profit on each packet was about Sd, but the tremendqus quantxties handled gave the turn-over. The position of the cigarette andN tobacco companies was analogous to that of the oil companies. - ••