The Daily News. MONDAY, JANUARY 31, 1921. TRADE AND FINANCE.

Taranaki Daily News, 31 January 1921, Page 4

The Daily News. MONDAY, JANUARY 31, 1921. TRADE AND FINANCE.

The publication of the returns for the December quarter m relation to the Dominion’s revenue and expenditure, as weU as its imports and exports, afford interesting matter for all who follow these matters closely. There is, of course, a close connection between the figures concerning finance and trade, particularly as regards the revenue from customs, income tax and railways in their relation to imports and exports, especially the latter. For instance the customs receipts for the quarter exceeded those for the corresponding period of 1919 by about a million sterling, while the_ imports exhibit an increase of fen millions, and the exports show a decrease of one and a half millions. It is, however, when the totals for the calendar year are taken that the full extent of the adverse trade operations becomes apparent, the imports totalling in value over 61J millions as against exports valued at 46J millions (a decrease of over seven and a half millions). This large preponderance of imports over exports, as has already been explained, is due chiefly to the execution of orders long outstanding, so that it may be regarded as temporary and exceptional, particularly as the banks have taken steps to severely cheek advances, so that during the ensuing year a satisfactory readjustment may be witnessed. It should be remembered that the figures are based on values and not on the volume of trade, so that they offer no indication of whether our exports are increasing or diminishing, while the high prices of imported goods is testified by the fact that out of the total customs revenue for four and a half millions in 1919, one half was accounted for by receipts from goods paying ad valorem duty. In all probability the figures at the close of the present financial year (March 31) will not show such a

large margin between the inwards and outwards trade as was the case on December 31. At the same time the additional million for customs, half million from income tax, and increases from other sources will be welcomed by the Treasury, especially in view of the fact that the expenditure side of the account shows that on December 31 the balance in hand was only £4,363,598 compared with £12,774,417 in 1919. That is the really serious point of the December returns, and, in fact, of Dominion finance as a whole. The need for retrenchment is admitted, but there the matter appears to end. except that the outgoings persistently rise. Manifestly this process causes much anxiety, especially in view of the adverse trading balance, high taxation, and the decreased value of all products except from the dairying industry. While there is no justification for indulging in pessimism, the economic position is not at present as satisfactory as could be desired, and this is emphasised by the dearness of money and the cautious policy of the lending institutions, whereby development is retarded, and the provision of urgently required necessaries has been rendered extremely difficult, if not impossible. The danger is

that the policy of drift may intensify the position. Reduction of taxation is obviously the first step that should be taken, and that implies an imperative demand for a drastic curtailment of departmental expenditure. If this is obtained and the people exercise economy, the workers put forth their energies and refrain from industrial strife, New Zealand will attain even greater prosperity than in the past. The aim should be to increase individual wealth by fair and legitimate means, while the danger consists of depleting the capital which has been built up in the years of prosperity.

EX-SOLDIERS’ SETTLEMENT. At the recent meeting of the Dominion Executive of the Farmers’ Union, dis-; cussion took place on a proposal, eman-, a ting from Dannevirke, that the settlement of soldiers on the land should be suspended, in view of the unsettled state of the markets and the possibility of land falling in price, the contention being that by delaying the purchase of land the soldiers would be more likely to get their land and stock at prices more in keeping with the probable value of produce in the future. Judging by ■ the remarks which fell from some of the speakers, there was justification for the opinion voiced by the chairman that many returned soldiers would not understand the motive that lay behind the ir -ition, and in support of this view may be quoted the statement made by a delegate that “the Government was mopping up the money required to finance the farmers’ produce, and in this way was accentuating the difficulties created by the fall in the market prices and the growing scarcity of money.” With an argument of that nature there can be no sympathy, for by its outstanding selfishness its condemnation is absolute. The Government is pledged to carry out its scheme of soldier settlement with as little delay as possible, and though some qf these settlers may be up against a stiff proposition owing to their having acquired holdings at high prices, that is no reason why the scheme should be held up, though it is a strong argument in favor of protecting those for whom land has yet to be found by enthiring that capital loading is fair and reasonable. The motion was rightly defeated, and if those farmers who evince a desire to benefit soldier settlers would in pursuance of the pledge* of the executive at a previous meeting, “find all the land they could for returned soldiers,” they would be doing -far more good than by accusing the Government of “mopping up money required to finance the farmers’ products.”