TRADE, INDUSTRIES AND FINANCE.

Taranaki Daily News, 19 June 1915, Page 3

TRADE, INDUSTRIES AND FINANCE.

IiOPEH'L OUTLOOK. Py Telegraph.—Press Association. Wellington, Lust Xight 1 tlic course of his animal report the chairman of the Hank of Xcw Zealand said at the animal meeting to-ilav: The Xe\y Zealand qnarterlv average Tnuikinn; statements indicate'an easy financial position in the Dominion. Comparing the -figures of March 31 lust with those of March 31, l!) 14, we find the following differences in the aggregate averages of all the hanks. ° Deposits. .£ Interest bearing—increase ... H1(3,020 Non-interest hearing—increase 2.482, Mil £2,798,M0 Advances. £ Discounts—decrease 382,000 Other advances—increase 384,324 Xet increase ,-C1,(134 Improvement during the 12 months in the position of the piiWic .villi the hanks £2,7.07,3.]( i The Post Office Savings Punk figures show a similar large accretion of funds. The excesses of deposits over withdrawals, for the half-year ended MaAh 31 last, reached the large total of £1,188,071.

These improvements have been contributed to largely by: (1) The increased value of our exports, ami (2) the reduced value of oiii' imports—the margin between which will probatbly be found, when the returns for the "year ended March 31 are complete, to be the highest Hint has been touched for many years .past. For the year ended December HI last, the latest date to which complete returns are available, the figures arc: £ Exports (excluding specie) .. 26,253.900 Imports (exluding specie) ... "21.1-44,200 Surplus exports £j,100,700 The surplus fof the previous year ended December 31, 1913, was £1,150.731. The increase in the exports is due, in a large measure, to the enlianced prices commanded bv our primary products. The decrease in imports is attributable to several causes:— (1) The caution exercised i>v merchants and importers when ordering supplies in the early days of the war. (2) A lessened demand consequent upon the more economical style of livinjr that has been in vogue since the war began. (3) The impossibility of obtaining many lines of merchandise from Germany and Austria, and the inability of liritish manufacturers and exporters to fill orders. t (4) The hick of tonnage and the difficulty of shipping owing to the congestion at the London docks. The export .figures for the quarter ended .March HI are available, and amount to £11,20.1,01)0, as against £9.f1;13.100 i for the quarter ended March'3l, 1014. The import figures for the same quarter are. however, not complete, but the Customs revenue for the quarter is said to amount to only £737.000, as against C!)3.">.'oon for the quarter ended March 31. 1014. showing that there has been a substantial falling off in importations. This is, of course, all in the direction of widening the margin 'between imports and exports, thus increasing the credit liahiuce on tiie Dominion's trade as a whole and, consequently, the funds available liere. IA statistical comparison of the trade of Xew Zealand with previous years would be apt to be misleading, because of the great disturbance caused 'by the war. The. difficulty of importing goods and the advances in prices on the one side, and the high prices for exports on the other side, make an examination of the position almost impossible, for we have always to bear in mind that, after Hie war, drastic changes will follow. The values of some commodities must necessarily decline, and others will probably advance, and a new view must be taken of tile situation. Financial ease is apparent, .lnit it is case which, like the calm before the storm, may presage strain and stress later on. The ae-unmlations in the hands of the banks are undoubtedly due to apprehension with regard to the future, and a desire on the part of the depositors to 'be prepared for possible eventualities. This is clear from the fact that the increases in deposits are principally in the non-interest bearing class—i.e., the current aceofmts.

This is not an encouraging feature, because it indicates, to some extent, commercial and industrial inactivity. TUiilding. except iu the way of Coverunient undertakings, is largely at. a standstill. and investors are disinclined to enter into commitments. Business on the Stock Exchanges of the Dominion is also very restricted. At the same time, prices of shares in regular dividend paving financial and industrial companies stand at a sat'" 1 factory level, and share are well held, there being few sellers. -At fm' commencement of the war, a sharp decline in market values occurred, but as conlidence returned recovery became rapid, and to-day there are few stocks in i'av.i;te companies which e:in be purchased to yield more than o to 11 per cent. 'Hie export of meat from the iDomiuion. oMicrwi-e than for the British flov eriinient. is now prohibited. J'.arly in the year, the N'ew Zealand Covernment, act in" on behalf ot the Imperial enthorilies, commandeered the whole ot the meat, in store and all future surplus for expoi-t. The meat is purchased on (he biisi- of a fixed taritr, which gives remunerative prices while, at the same time, it prevents exploitation of the Imperial Covernment and of llie liritish consumers by speculative hovers. It- seems to me that a similar scheme, controlled by the N'ew Zealand Covernment and -worked probably in co-opera-tion with the liritish Covernment would be effective to put a stop to operations lie the American Meat Trust iu this Dominion, should an l " dangerously nrcssivc action here be attempted b\ the trust after the close of the war Owing to the serious shortage in tiie wheat supplv of the Dominion importations of wheat and Hour have been made

from -America and Australia, a. larppart rqircsc'itiiig piuvhiiscs the Government in the public .inleres!. , The Government's .judicious avtimi in this respect undoubtedly lias had the effect of steadying tile market, anrt pre. venting jtii advance in the price of " fie stall' of life" to a figure whiih would almost certainly have necessitated rcdnced consumption. The pressure njiun steamer freight space from New y or k and San Francisco owing to this and other causes lias been so great that quite a number of sailing vessels have iieen recently chartered for the trade. The conditions of the Dominion staple industries leave little room for complaint. It is true that in some, parts serious droughts have prevailed, and that, owing to the commandeering of ships if or the 'transport of troops, there is temporarily a serious shortage in ireight facilities with some possible loss to farmers who, having brought their stock into .condition for killing, have found themselves unable to sell to the freezers, or get 'their stock killed and frozen on their own account. On the other hand, phenomenally good prices, as 1 'have already shown, have been ruling for wool, frozen meat anil dairy (produce. and the better prices have, in most cases, .more than compensated for the reduced yields. As a consequence of the deficiency of freezing and storage facilities movements have been initiated at various points throughout the Dominion to establish new freezing works and refrigerating stores. In considering all such projects, it should, of course, not be overlooked, that the present is a time when exceptional and abnormal conditions prevail, and filial, in ordinary circuiu.staiK i s, the existing facilities for dealing with the frozen products of the country are 'probably, in most cases, quite* adequate. It will, therefore, he politic that the promoters of such schemes should consider carefully whether or not there is a permanent opening for the establishment which they have in contemplation. I'f what they have in view is designed simiply to meet the present temporary necessity, wisdom would, I should i say, dictate 'the abandonment of the I proposed venture.

THE OUTLOOK. I think we may look for a continuance of good trade. The end of the war may ibe followed by heavy taxation and unemployment in " those 'countries now engaged in hostilities, but New Zealand is still 'bound to lind an outlet at remunerative ipriccs in Great Britain, the Continent of Europe and tthe United States of America for her wool, frozen meat, dairy produce, etc. It would, of course, be unreasonable 'to expect the abnormal rates at present ruling for the. articles enumerated, but there is little doubt that the demand w'hich will then exist for our primary products will enable us to face the future with equanimity, and assist us in discharging the heavy liabilities we have directly undertaken in connection willh the war. The war is costing the Government a substantial sum, and I am convinced that prudence and reasonable economy a'c being exercised in the expenditure. The cost of the war must be met by • I increased taxation, a.nd no doubt we j may expect to have proposals submitted : under this head in the course of a. few 1 days. The country is well able to face ■ this in. reused taxation; indeed, looking at all the circumstances, it was never better fitted to stand such a pressure. As I have already mentioned, the commandeering of so many of our insnlaled steamers for troopships has hampered exporters considerably, and lias caused some inconvenience, but the Government is ma king every ell'ort to provide a sufficiency of insulated ships, and it is anticipated that the difficulty will lie overcome bv the end of July. Some change in the incidence of trade is certain to follow the rupture oF the old commercial relations occasioned by the war. and new trade routes are already being pricked out on the map. Germany, for long years to come, will, I hope, be commercially ostracised. The trend of .public feeling the world over seems to point in that direction. New outside markets will, therefore, have to he exploited, and fresh industries within the Empire itself established and developed. Japan is already in the field. and quite recently a distinguished deputation visited the Dominion with a view to opening up fuller trade relations bclwecn the two countries. There is a possibility of an early inauguration of a direct steamer service with Japan. .Already, the trade of Australia and New Zealand with the United Slates of America, and Canada has taken a forward bound, largely encouraged by a thc r.penin.g up of the Panama Dana], Large shipments of wool ami concentrates have been made from New Zealand and Australia to .Boston and oilier American 1 " ports. Wellington will be a frequent port, of call, for coaling and other purposes, 011 this new trade route. The trade with the United Slates is bound to develop, and it is the duty of our /merchants to help in the development, at. the Vaino. time taking fare that the pernicious American system of combines and monopolies is not allowed to obtain a footing. Trade with Canada, 100, is declined to grow, and it is not unlikely that, closer political relations will V established with the sister Dominion after the, close of the war. China and Russia are. commercially sneaking, lands almost, unknown to these islands, but it is faiil.v cerlain that they will not long remain so, and when we | come lo reflect upon their immense populations and their boundless resources the trade possibilities opened up a.]>pear to be illimitable. Tl is noteworthy !!i«t the wars of the early part of the nineteenth century laid the' foundations of the peace upon which the phenomenal social and industrial developments of the la'cr part of that century wi re .based, and now. in Ibis twentieth century, history may repeat itself, and when the. knell ol niili- . iarism has been sounded, and the nations have turned their energies again to the arts of peace, developments as yet undreamt of may take place. The next IftO years may witness the attain- | nseiit of stages of further jirogve-- in art. ' science, industry, social conditions and . international relationships, which shall ( outstrip even the nineteenth century re- j cord, and present contrasls with exisl-J ing conditions more remarkable and important, than those of any of the. centuries o,f the past.