The Daily News. MONDAY, MAY 16, 1921. THE FINANCIAL POSITION.

Taranaki Daily News, 16 May 1921, Page 4

The Daily News. MONDAY, MAY 16, 1921. THE FINANCIAL POSITION.

A comparison of the import figures for' the past financial year with those for 1919 explains in no uncertain manner the stringency now being experienced in the Dominion. Following are the figures, those for 1919 being for the calendar year and 1920-21 for the financial year:

It will thus be seen that the imports were more than double those for the previous year, the increase being nearly £37,000,000. These excessive imports came about largely by the action of Home and American manufacturers, who, finding conditions in their home markets adverse, searched their records for unfilled orders of colonial customers, and dumped all they could in New Zealand at high prices. These goods had to be financed, and the bank returns prove that the banks came to the rescue to the fullest extent of their ability. Concurrently with the excessive imports came a decrease in the value of our exports. ''For the financial year ending March 31, 1920, amounted to £51,000,000, whilst for the year just ended they fell away to £48,199,000. Had it not ‘been for the high prices secured for our dairy produce there would have been a much more substantial decrease, for the markets for ‘both wool and meat practically collapsed during the latter part of the financial year. Thus there was an adverse balance of £19,000,000, besides which must be added the five to six millions we must find annually to meet interest charges on our Home loans. We are, therefore, twenty-five millions to the bad on the year’s operations, which means that all, or nearly all, our liquid accumulated credits have been absorbed. This accounts for the present financial stringency. The custom returns for April show that we are now importing very much less, and if this condition continues until the great accumulation of goods in the Dominion get into use it will not 'be long before we will have retrieved our financial position and things become normal again. Of course our financial position is absolutely dependent upon the Home markets. If they recover after the present industrial crisis, all will be well. If they remain as they are the depression here will continue. But there are not lacking indications that with the reparation troubles with Germany overcome and industrial peace again at Home the markets for our staple products will gradually recover and give remunerative returns to our producers. The movement of the sterling exchange in America in Britain’s favor is not the least favorable sign on to-day’s horizon.

£ 1920-21. ' 1919. Soft goods 16,032,017 6,575,712 (Inc. £9,456,305) Hardware, etc 8,375,966 3,673,897 (Inc. £4,702,069) General merchandise 10,303,253 3,874,727 (Inc. £6,428,526) Liquors . 1,592,736 2,072,934 (Dec £480,198) Behzine, etc 2,233 026 (Inc. £1,447,410) \ chicles 3 072 931 (Inc. £1,832,569) All other items 25,853,340 12,448,191 (Inc. £13,405,149) Totals (Net increase £36,791,830)