N.Z. TRADE

Rotorua Morning Post, Volume 3, Issue 630, 7 September 1933, Page 6

N.Z. TRADE

("Post"

. IMPROVED FIGURES FAVOURABLE BALANCE OF OVER TWELVE MILLIONS SEVEN MONTHS' FIGURES

Special Commissioner.)

Wellington, Wednesday The latest trading figures disclose a wonderfully favourable trade balance for the Dominion, and give some indication of the exchange position, although naturally they do not tell the whole story. This may 01* may not he disclosed in the Budge't. According to official figures while exports for July show a slight recession, the further restriction of imports has produced a resultant favourable balance of trade for the month of £1,700,000 in New Zealand curreney or £1,300,000 in sterling. The- figures are slightly higher than the corresponding totals for June, and well above the figures for July, 1932. For the first seven months of 1933 the excess of exports amounts to £12,400,000 in New Zealand currency and £9,900,000 as compared with £9,600,000 and £8,700,000 respectively for th'e seven months of 1932. One of the reasons for the maintenance of the volume of exports at a higher figure than usual has been tbe unusually large export of wool consequent on the rise in prices overseas, and tbis must be an additional) source of discomfiture to a Minister of Finance who is watching the piling up of surplus exchanges. Th'e wool exported in July amounted to an increase of 200 per cent in ' quantity :and nearly 300 per cent in i value over the corresponding month ! of last year. For the seven months of i the year the exports of all eommo- | dities reached a total value of 13.6 per i cent. in excess of that recQrded for a similar portion of last year, and over the same period imports fell in value by 9.4 perj cent. The maintenance of a favourable balance of trade throughout the year is an unusual phenomenon for New Zealand, and importers generally are ofl the opinion that it will continue so long as the exchange rate remains at the present level. They also point out that . some of their principals overseas have been meeting some of the exchange costs in order to maintain. their hold oit the market, but that they cannot g 0 on doing this indefinitely, as this practice means that they are selli ing at a loss. Mr. Forbes and Exchange It is expected that the Prime Minister (the Rt. Hon. G. W. Forbes) will have something to say on the exchange position when he arrives baek in New Zealand on September 18. He stated before his departure that he intended to sound English opinion on the matter, and it has been rumoured since that the depreciation of the exchange has had an adverse effec't on New Zealand's opportunity | of obtaining favourable terms for a i conversion loan on the London mar- ! ket. This rumour has been denied in official quarters, but the attitude of some of the local bodies in regard to interest -payments has not enbancea the Dominiion's reputation and J their aetion is the direct result of the exchange position. Building Industry The fillip given to the building industry by the Unemployment Board's building-subsidy scheme is reflectcd in the figures for July, when the statistics of buildmg activity showed an j increase of 29.7 per cent. over the . preceding month. In tbe larger towns the total value of the permits issued during July was £183,057, compared with £146,410 in June and £98,369 in May. A noteworthy feature of the July statistics was the increase. in the permits for dwelling houses, 176 permits representing a total value of £112,770 being issued during the month, as compared with 47 permits, representing £23,418 in June. The number and total value of permits is- ; sued during July, though small when compared with individual months during the "boom" years, nevertheless was greater than has been recorded for any month since 1930.