NEW ZEALAND'S POSITION.

Taranaki Daily News, Volume LIII, Issue 333, 21 June 1911, Page 5

NEW ZEALAND'S POSITION.

AND ITS PROSPECTS. HON. T. McKENZIE EEPLIES TO MR. BEAUCHAMP. By Tel: graph .—Press Association. Palmerston N., Last Night. At the opening of the National Dairy Show yesterday, the Minister for Agriculture, speaking at the conclusion of the Governor's address, replied to the statements made by Mr. Beauchamp, chairman of the directors of the Bank of New Zealand, at the annual meeting of the bank. Mr. Beauchamp had pointed out a deficiency of £2,342,000 between the interest requirements and the surplus of exports of the Dominion, and claimed that the coining year promised to be one of low prices. Mr. McKenzie claimed that the four years quotea were insufficient to base a conclusion upon, as the years included two very serious ones brought about by the Wall Street crisis, and the third year had been affected by a serious drought. He also claimed that it was unfair to estimate the position of tlie country by reviewing the exports and imports and balancing the differences, as there was the great internal wealth of the country to be considered.

The bank president's forecast of low prices was not borne out by investigations, and Mr. MeKenzie claimed that never in his memory of the world had there been such trade prosperity, and, apart from any political upheaval anywhere, they might look with confidence to the future. In pointing out the errors into which the president of the bank had fallen, Mr. MeKenzie said that if they took the figures for 1889 to 1910, they showed that our exports exceeded imports by £650,000, whereas from 1870 to 1888, the imports exceeded the exports by twelve millions. This showed the enormous change which had come over the country. Since 1889, the increased wealth, after deducting the increased debt, amounted to £211,000.000, which left an enormous reserve against such temporary differences as Mr. Beauehamp had called attention to, and which were far outweighed.

So far from Mr. Beauehamp being right about prices, there was every indication that butter, cheese, meat and wool would hold the present prices, and, even reach enhanced prices. In spite of the increase of Australian butter, our butter was always demanded at higher rates than Australian. Our meat realised higher rates than Australia's. When Canada had reciprocity with the United States, her competition in the cheese ninrket in England would be relieved, and there was every reason to believe that great European markets hitherto closed would be opened to our meat, while the wool-using peoples were increasing greatly in number, and woolhearing flocks were diminishing. He had gone thoroughly into this matter, and as he bad had some success with his forecasts before, he preferred his own conclusions to those of Mr. Beauehamp.