OUR EXPORT TRADE.

Temuka Leader, Issue 164, 23 July 1879, Page 3

OUR EXPORT TRADE.

I Xew Zealand -is ' dependent Ur ’ r "wealth ujion her export if -ie, ;ml unless the vain deceived for t lie wU, grain, products sent away. is such ay both 'to repay the cost of production and to cover the intoiost u[»m the ;capital invested, the prosperity of the co mi try must decline. The enormous increase in the production of artic l es of general consumption, which has taken place during the last decade, has cora-

grain, products sent sway, is such ay both to repay the cost of production and to cover the intoicst u[»m the {capital invested, the prosperity of the country must decline. The enormous increase in the production of nrtich’s of general consumption, which has taken ;place during the last decade, has cora- ! pletely upset the equilibrium of the 1 chief markets, and the present depression in trade and remarkable alteration in. values throughout the world are held to ho largely duo to this rapid increase in production. New Zealand wheat has to compete with grain from the (States, from South America, Russia, ■ Australia, and elsewhere. The quantity of grain grown in this, colony during the twelve months ending February, 187?,

I was nearly twice as largo as during the S previous year. Despite this • fact there i was, however, a decrease in-the quantity i of. wheat grown, and only a very slight i increase in the area sown in wheat. We I believe that there can be but little doubt : that Xew Zealand is naturally less 1 adapted for supplying the rest of the world with wheat than many parts of Australia or than the Western States of I Amcuica, and wo are not therefore inclined to view the check which that industry has received in tire light of n misfortune ; but it is evident that wheat growers have.discovered that the game, does,not pay as well as oat-growing for instance. The industry has come to a .standstill, and other countries are evidently driving ,us out of the market. When we state that the export of wheat from the Unißd (States lias increased from 31,000,000 bushels in 18G0- to 96,000,000 bushels in 1878, the rapid decline in prices will cause hut little surprise. The whole of Xew Zealand only produced 6,000,000. bushels of whea't last year, so that our export trade of wheat is, comparatively speaking, unimportant. After being ,so severely nipped in the hud it is, in our opinion, unlikely to expand. It would he interesting to enquire whether- this check to a young industry has-been caused by■ the high price. of labor or not. I

Turning to the wool growing,' upon which'the prosperity of Isew Zealand eh icily depends, we desire (o point out that the United'Hta'tos threaten to become, ifiiut rivals irrthe trade, at all events self-supporting ere lung. According to iho Yew York ‘ Daily Jjnlletin,’ the home-clip in the United .States amount'd to 211 ooo,oooibs in 1878, showingu increase of 8,000,. >oolbs, in tlic year. Tin re was a failing off <.f 14.000. in the ] >r<.rluctiou of California, hut this was covered hv an increase elsewhere, The imports into the Stales during 1878 amounted to 84.000. as against 47,oi H ’,ouoibs. in tin 1 previous ocar. lint fur the exceptionally had season in California in 10/8. the United Hates production vo.qul Lave shown an increase of some17,$t)0,0y0!bs., or more than half the total imports. In 1872 the import of wool intdtho United blabs amounted to U8,0l ! 0,000ibs., * and in 1871 to 7S,OUO,OGUIbs., consequently the falling off since then is very eonsiderable. Of late years the average increase in the quantity ’• of wool ex* cried from Jf cw Zealand has varied between 5.000,0 HI bs. and G,ooo,ooolbs. a year. ' In 1875 the apparent increase in the quaihitv exported was more than 7,500,000!h5, hut this was in some measure due to the fact that the practice of shipping wool homo in Ihc picase, ?.e,, in a heavier.

dirtier condition, was then coming into fashion. The home cfcismnotiuu of wool within New Zealand yet but small, nevertheless the existing factories already consume enough ol the raw material to exercise an appreciable influence upon the export returns ; consequently the real increase in production exceeds that shown by the export returns. From what has been written it is evident Few Zealand and the United States between them have been placing an enormously inc.ieasod quantity of'wool upon the world’s market Tcarlev. In wheat growing- the statistics of New Zealand prove - that our farmers have tar'.en fright, and have gone into oats mi l grass .crowing instead, It is just possible that the Yankees may shortly compete wit!) us as wool exporters Xu eight years their gross production has increased h\ 4y,000,0001h5. ; within the same period! tue Few Zealand production has increased by 27,000,0001b5. Such figuies, as those offer food for reflection We have no desire to act in any way as alaim.sts , it is our firm'belief that as a grazing and wool-growing country this colony need not be afraid of any , competitor, but it is necessary that conditions should be nearly equal! A Now York journal observes that “while wages have “ declined ‘throughout the country, and are in some branches of industry “ lower than in Great Britain, they aio “ still practically higher than they’ were “ previous to the period of inflated war “ values, when considered in connection “'•with the cost of living before that time. “ A further reduction of wages may u th-wefore be looked for as the result of “a return to specie payments.” In England the price of labor Is lower than jt has learn for years. Jloth these countries are keen competitors with New Zealand as growers of wool fort lie world, and aUpresent have one great advantage in the difference of the prion of labor in their favor to set against the disadvantages of climate, «fcc,, with which they have to eontmul. Frantically the New - Zealand' fanners have admitted that wheat growing docs not pay : <Fnr labor, lend, laves, and heave rates'.are

eiKutgii. to handicap them very heavily i---»eoi growers also. So long as the proiits are i; e, wages may lie high ; l»ui it when ; ; are ;n- wages do not conn- ■ >v> . cap! d .11 ere long he withdrawn • rom be business, and the goose wlrrh !id Jhe golden eggs will die a lingering death. In a future article we hope to devote some attention to the price of labor in connection with the cost of living : a question which is inseparably connected with the cost of production, and one upon which our colonial prosperity really depends.— { New Zealand Times.’