The Daily News TUESDAY, DECEMBER 7. THE OUTLOOK.

Taranaki Daily News, Volume LII, Issue 258, 7 December 1909, Page 2

The Daily News TUESDAY, DECEMBER 7. THE OUTLOOK.

it is doubtful if the outlook of New Zealand was ever better, or as good,

as it is at prcstnt. Prices Bor aJI oi\ | staple products—wool, frozen meat, butter, cheese, Jlax, aud wheat—are very satisfactory, while the climatic condiI tions have been so favorable that a bounitiful season is practically assured. Aftih 1 the recent slump, the improvement, is all the more gratifying, and will have the eircet of putting the Dominion on a more solid basis than ever—that is, pro viding the people have not forgotten tin lesson taught by the depression. Already the effect is being fell, as is nevealed in the banking returns and the marked increase in the value and quantity of our exports, and, whai is sui. more gratifying, the decrease m our imports. At the half-yearly meeting "oi the Bank ol iNew Zealand last week tin chairman of directors' gave utterance to some interesting olJWvations the po.sitiou'of the Dominion. He pointed out tiiat a distinct, revival in trade appeared to have set in all o\er the world, but particularly in me unuu. States—of late years the storm ccnui of the financial world, bvery man c ceived recently, he said, has brougnt intelligence oi renewed activity iu om industry or another. Hie steei trades are particularly busy, the demand 101 steel jails being especially .strong, iiu

rauroau companies of America have large development works in Hand and

iu project, involving an expenditure of many million doiiars. ilie Union jPacilic and Southern i'acinc j.unni) sys

terns have extensions aggregating „p proximately 2000 miles in course oi coh siruction. Tim* production o*i p.g .• ,

in the United folates is now up «.o ui. highest level of recent j-cars. ine itports of the German sleel syndicate.-! state that the orders on their uooks en 10th September amounted to a,>ou, 1550,000 tons more than at Ue cone sponding period last year. in Ureal Britain there is a distinct iinpiu,en,ciu Shipbuilding, the main industry oi in. United Kiugiloin, i s showing s;gu s o, recovery. According to Lloyds' rcgisic of shipbuilding returns, the lonnagi under construction oil 30th Sepieinoe was about 30,000 tons more limn in.i which was in hand at the end of tin June quarter, and about 45,(100 ton more tlian was building twelve mouth ago. The European iiutl Anieneai money markets arc at the inonien rather high (the JJank of England rati now standing at 5 per ceul.). but tin is not -an unusual feature at tli.s tun of the year. The .Mother Country i unfortunately disturbed In a pcioin;

political crisis, for a general elccuciu a great drawback to trade.

I'he favorable conditions now m parent in Europe and America are bcui; reflected in New Zealand, i lie expound import returns prove conclusive!, that the community has prolited by m temporary depression. Traders unit pre duoers have been forced .to lace tli position, and their ellorts have res nil L * ill the equilibrium being restored. Th exports show a substantial surplus ove the imports, and, so far as \vc are con ceriied, that amounts to a favorabf trade balance. Tliij point may be cm phasised by figures. The values of tie exports and imports for Hie year emlci 30th September, 1!)01), compared with tin ligures for the two previous years sliov as follows;

Exports. Imports. V'ear. ,e .t 1000-7 .. 19,801,840 10,071,887 1007-8 .. 1,0,370,587' 1/ ,750,808 1008-0 .. 18,700,150 14,010,005

It will be seen from Mr. Bcauchanip's figures that, while in 1007-8 the imports exceeded the exports' by £1,380,281, for the year just ended the exports exceeded the imports by JL'3,784,151. The speaker went 011 to say: "We ale, in eirect, back to the position we were in in 1000-7, which was the year of our extreme prosperity. It is not necessary for this country to sliow a substantial excess' of exports over imports, because we have to meet annually a very large interest liability in connection with public and private indebtedness. Wo have, it would seem, practically recovered the ground lost in 1007-8, and we may now reasonably anticipate a further forward movement. There are many factors that warrant this expectation." Mr. Beauchamp referred to them in the following terms: "The prices for the new season's -wool clip 6'old in Wellington and in other parts of the Dominion, as well as at the sales held .in the chief centres of the Commonwealth, indicate very clear'y that at the moment there is a strong demand for this staple, as was anticipated by our London advices. Values realised at these sales were considerably in advance of those current a year ago, and latest London cables show that the market presents features of great strength. Whether this firmness w . be carried into the new year is problematical, for wool men are likely to or guided by their well-known uiaxim. 'When wool is dear it is dangerous; when it is very dear it is very dangerous.' Values are extremely 'high just now, and only twice in the last nineteen years have they been quite as high. There may be a reaction, but in any case it is very probable that higher prices than last season will be obtained. New Zealand will produce a larger clip I this year, and with the higher range of values quite two millions sterling should I lie added to the income of the producers."

"The exports' of both butter anil heese," Mr. Beauchamp went on to say show very substantial increases in quan ity, and as values are -practically up t he level of las't year, we are justified i nticipating a fairly substantial increas i the income from this source. Kougl y, this increase should reprcsen £250,000. llutton and lamb have n overed from the depression that affecte hem in July and August, and althoujj lie market is .showing signs of wenkt'i ng from pressure of supplies, the l)c ninion should, with an increased outpiil ie able to maintain its income from 1 In iranch of industry. There is some hop hat developments in the chilled bei rade. with the aid of the Linley process vill take place in the near future, ill mccess of the shipment by the Jlaratho 1 rom Queensland is very encouniginj temp has improved materially, the c.iJ luotations for January-March shipment jeing well in advance of those iu I in<r -'ear ago. Hemp is, in point of fac-Ca i remunerative level, and most of th nills can be operated to pay. An e.\ lansion in the output of thisproduoe i. i believe, one of the certainties of th ioason. Wheat and oats and other grai ind pulse will again add materially t the volume of our exports; and, ta'kin ill the factors into consideration, 1 an af opinion that when the produce yea 3nds on 30th September, 1911), ' tli imouut of our exports will establish record in point of value. The prospect before us arc decidedly good, and thi bank, with its' -ramification* and clos ,'onnection with Me proilm-erx. mus necessarily benefit, I cannot, howevel refrain from repeating a warning note ■aution must continue to -mark Ili |iolicv of the trading coniniimilv, ail' Lhc land speculators throughout the l)c ninion must endeavor to moderate tlici news on values. New Zealand ha .'iciillv increased her obligations in rt ■out years, and while she is well able t faithfully meet all engagements, thero i io reason why the people should b liimlicapped in their work by ridiculous v high land values. 'Caution' slioul the watchword of the people now anil w;i vs." If the warning is taken t' icart, there is not the slightest, doub .bout the Dominion's future, which l iregnant with great possibilities,