The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER SATURDAY, JUNE 3, 1916. TRADE AND TAXATION.
In its issue of May 31st the Otago Daily Times discusses trade and taxation from a very important viewpoint, and in doing so refers to figures quoted by the Hon. Dr. McNab at the opening of the Dunedin Winter Show. The figures used were relative to the trade of the Dominion, and while not new, are impressive enough to bear further repitition. "Dr. McNab," the Times goes on to say, "selected the trade returns of 1909 for comparison with those of last year. There was probably no special reason why the figures for 1909 should have been chosen for illustrative purposes, but the result would have been hardly less striking if the comparison had been made between last year and 1910, which was, prior to the war, the year that largest balance on record of exports over imports. We ta.ke, however, the figures for the years selected by Dr. McNab. The comparison may be tabulated in the following form':—
Increase £6,054,115 £12,086,916 I It will he seen, therefore, that while the value of the imports of the Dominion last year, £6,054,115 in excess ol that ol' 190!), the increase in the value of the exports was nearly twice as great as this amount. Hut the comparison may be stated more usefully in terms of the excess of the value ol exports over the value of imports Fori particular periods, because it is from such a comparison that the profitable nature of the export business of the country is to be learnt. The following table shows the measure of the excess of exports- the extent, that is, to which the balance of trade has been in favor of the Dominion- ior the past seven years, from 1909 down to and inclusive of last year : Kxcess ol Kx ports. £. 1909-191 a (five years) 12,482,29-1 1911 ... ' ••• G.109.0W LOJJ3 .- ■•■ 10."2,1(fe ! hl m ,lo,- that the above inures may : |,e adequately appreciated, it is necessary to state that the period ol five ! complete years, from 1909 to 1913 •>.- i elusive, prior to the war in-hided two | successive years which had yielded 1 what at the lime were regarded as highly satisfactory balances of exports'over imports—namely, 1909 with 1 a balance of £4,818,689, and 1910 with 1
a record balance of £5,404,250. It i will bo seen, however, that the trade i balance for last year came within about a million and three-quarters of
the total excess of exports over imports for those five years, including.' as they did, two highly successful years. Nor are the phenomenal figures as they may justly be called, for last year—figures, moreover. which will, on present indications, be ex-' ceedod this year--attributable to a great expansion in the volume of the export trade. There has been an increase in the volume of the export] trade of;the. Dominion, but it has not been ' really camparable with the increase in the value of that trade. Mr Rose, president of the Oamaru Chamber of Commerce for the past year,, comparing the expons of the four staple products of the Dominion for the twelve months ended on the 31st March last with those for the corresponding period of 19113-14, showed last week that the following remarkable dif-
ference existed between the increase in the volume and the increase in the value of these exports:—
It is apparent, therefore, that the increase in the value of the exports of these products, representing 74 per cent, of the total exports for last year, is wholly explained by an increase in prices. This increase in prices is solely due to the war. The prices are war prices. The profits secured by.the exporters of the products are war profits. Now, the principle that the State may justly claim a proportion of war profits for the prosecution of the war is incontestable. It has been accepted and is being applied at Home virtually without protest. It is being applied in Australia. It has not, however, been directly applied or substantially applied in New Zealand. A great field for the imposition of taxation lies open to the Minister of Finance in the Dominion. The producers who have reaped the benefit of war profits would in most cases, we believe, readily admit the justice of a war tax on those profits. It is a form of taxation, moreover, which is necessary in order to approximate, at least in some degree, the contributions —we cannot in tliis special connection speak of the sacrifices—of different classes of the community to the fund of national effort that has been brought into existence by the war. Tho'se who are of military age and are physically fit are being called to active service. The call is one from which there are to be no exemptions save such as are dictated by national necessity. Upon those in the community who by reason of age or other disability: cannot be employed on active service—much to their regret, we believe, in the majority of instances—the call has to be made for the provision of the sinews of war. And there is really no source from which the sinews of war may more appropriately be extracted than that consisting "of the profits derived from the war. The Minister of Finance will neglect a great opportunity if Tie does not, on behalf of the State, exercise its right to claim a substantial share of those profits for the service of the State."
'"■ Imfat W. " - Exports: :<f ■ ( ,-. , ,, £ _ -, <> WA , -e*, 1815 21,738,834 31,748,912 1909 15,674,719 19,661,996
Increase Increase in quantity. in value. Per cent. Per cent. Wool ... 1.3 55.1 Frozen meat 20.8 155.1 Butter ... .6 29.3 Cheese ..." 16.2 38.1
Permanent link to this item
Hononga pūmau ki tēnei tūemi
https://paperspast.natlib.govt.nz/newspapers/STEP19160603.2.10
Bibliographic details
Ngā taipitopito pukapuka
Stratford Evening Post, Volume XXX, Issue 51, 3 June 1916, Page 4
Word count
Tapeke kupu
954The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER SATURDAY, JUNE 3, 1916. TRADE AND TAXATION. Stratford Evening Post, Volume XXX, Issue 51, 3 June 1916, Page 4
Using this item
Te whakamahi i tēnei tūemi
Copyright undetermined – untraced rights owner. For advice on reproduction of material from this newspaper, please refer to the Copyright guide.