DOMINION TRADING.

Taranaki Daily News, 10 June 1922, Page 12

DOMINION TRADING.

ITS RISE AND FALL. H M TRADE COMMISSIONER’S REPORT. “THERE HAVE BEEN NO. DISASTERS.” Reference was made in a recent issue to the report of H.M. Trade Commissioner in Nev/ Zealand (Mr. R. W. Dalton), in the Board of Trade Journal. An extract from that report was given dealing with the effect of high land values on the economic position of the Dominion. In the unquoted part of the report the Commissioner reviewed the import and export returns and showed how at the end of 1921 the balance of £2,000,000 in favor of the Dominion, of exports over imports, was delusive. He states:— “Unfortunately, the published figures are misleading, and there are other considerations to be taken into account before the exact position can be estimated. The Customs figures are calculated on f.o.b. values, plus 10 per cent., and it is well known that since the outbreak of war 10 per cent, on f.o.b. value has by no means been sufficient to cover the cost of landing goods in New Zealand. Consequently some addition to the import figures is required to arrive at the actual amount of money which has been paid for imported goods, and it would probably be within the mark to add another 10 per cent, for this purpose. A PROBABLE SEVERE SHOCK. “Such an addition would reduce the apparent balance in favor of New Zealand for the years under review (1914 to 1921) from to about £21,000,000. From this balance must be deducted also the amount of interest on loans which is payable outside New Zealand, and which in the years under review has probably been no less than £21,000,000. Taking into account certain other minor additions which would be necessary, it seems clear that far from New Zealand having enjoyed a; favorable balance, such as is indicated by the trade figures which are frequently quoted as an indication of satisfactory conditions, New Zealand has actually paid out more than she has received during the period since 1914 inclusive. This is borne out by the banking situation revealed during the early part of 1921, but a realisation of the position would probably even still prove a severe shock to a great majority of people in New Zealand.” THE FLOOD OF IMPORTS. Under these conditions it is not surprising to Mr. Dalton that the flood of imports which began about the middle of 1920 should seriously embarrass New Zealand, especially as a large part of the exports which were leaving the country in that year had been paid for some time before, and could not therefore be set off against, the incoming imports. The continuance of this flood of imports into the year 1921 had to a considerable extent obscured the real trading 'position for the year, and he holds that it x would be unwise to judge it from a superficial examination of the trade statistics for the calendar period. After reviewing the import figures in detail, Mr. Dalton shows that those for 1920 were very much larger than those for any year in the history of the Dominion prior to 1920, and he states: “It is no exaggeration to say that absolute stagnation existed in the majority of trades. Except in special lines, b.iyers were not at all .disposed to place new business; even if they had been, money on New Zealand account was not available in London for the purpose, and all the banks were keeping a very tight rein indeed on general business.

SIX MONTHS BEHIND. For obvious reasons, however, the statistical showing of the trading position in New Zealand is always at least six months behind the actual position, and it will therefore nof be before the figures of 1922 are available that ;t will be possible to see a reflection statistically of the position in New Zealand during the past year. It is not at all impossible, for instance, that the imports for the 12 months ended June next will not exceed £30,000,000, even if they reach that amount, which is doubtful.” Trades in which over-importing was most severely felt were most classes of soft goods, corrugated galvanised sheets, wire ( boots and shoes, preserved fish, confectionery and cocoa, leather, tea, motorcars and tyres, tobacco, and wines and spirits. The imports of most of these goods were maintained at a high level during the first half of the year, but the decrease in the second half was enormous. Had it not been, too, for heavy Government importations of coal, electric plant and railway materials, the total imports would have shown a much greater decrease than they have. Mr. Dalton notices an improvement in buying, particularly in. the soft goods trades, and quiet buying has been going on in the hardware section. “This improvement in general buying.is due part’v to the liquidation of stocks and partly to a feeling that the bottom of the depression has been reached, and. conditions are now on the up grade. Healthier conditions are undoubtedly prevailing. The whole- I sale houses in particular have passed through extraordinarily difficult times, lheir losses have been much greater than those of the retail, and it is not unlikely that all the larger profits which they made during the war and aft Q r have dicappeared in the past 18 months. In sonie outstanding eases firms are in a worse position to-day than they were in 1913. ■ “FOOLISH SPECULATION." There have been no disasters, however amongst the old-established firms; those who have disappeared have been individuals or firms who were not previously in the import business, and who have be m carried away in a flood of foolish spec'ulation m business with which they were previously unacquainted. But there have been surprisingly few disasters of any kind, and there is no doubt that the experience oi the past year or two will lead to a general improvement of business organisations and channels. Generally speaking, traders here have stood most' loyally to their contracts, and in this respect, hav? probably excelled most other ‘ markets. This speaks volumes for their general business attitude and their desire to do the fair thing; it should also influence British firms to gve them every consideration in the future.” The Commissioner concludes with a review of the New Zealand export position, quoting substantial increases in the °iLc a^' V P r °d uce anf ’ meat, and he finds it difficult to account for “the feeling of depression which has undoubtedly existed in

New Zealand during the past year”—looking at statistics alone. He regards the dairying industry as likely to become the most important of all. “It would seem, therefore, that, taken as a whole, an! looking at the position solely from a statistical point of view, there should hav •» been very much less cause for complaint than most people imagine,” remarks Mr. Dalton, in conclusion.