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The Timaru Herald TUESDAY, APRIL 6, 1926. THE BALANCE OF TRADE.

The “ Monthly Abstract: of Statistics” for March reveals an exceedingly perplexing movement of the Dominion’s balance of trade. Put briefly the official statistics show that for the twelve months ended February 28 last, the total imports of the Dominion were valued at £52,5(11,388, and the export® at £49,599,218, the debit balance against, the Dominion being £2,962,170. At the end of February, 1925, imports (for twelve months) were valued at £49,194,329, and exports at £53,918,205, a balance to the good of £4,723,870. It was generally anticipated, of course, that in view of the lower return received for the Dominion’s wool clip, and the decline in quantity produced, the earlier months of the current year would show a. marked swing- of the trade balance against the Dominion, more particularly in view of the undiminisbed flow ot importation®. Hence the leturns for the month of February do not make very pleasant, l eading:

February February 1925 1926 £ , £ , Imports .... 4,037,824 4,290,431 Exports .... 8,336,263 4,331,237 But if the returns for two months of the year included in the latest statistics, namely January and February, are examined wp find that whereas in 1925 there was a nuge balance m favour of, the Dominion, the value of the exports Ims decreased so greatly that the excess of’ exports over imports is now a little over a million:

Janunry-Februarv. 1925 1926 r- £ £ Exports .... 15,032,322 9,639,268 Imports. '. . 8,846,266 8,951,247 (In questionably the balance of trade swung very heavily against, the Dominion during January and February, but although there was a fairly comfortable margin of exports over imports, namely £2,750,000, at the close of the calendar year ended December 31, 1925, it will be seen by the following table that the favourable balance lias disappeared, and the imports for the twelve months ending February, 1926,. exceeded tli value of the exports:

Calendar year. 12 months end--1925. mg Feb., 1926 £ £ Imports .... 52,561,388 52,561,388 Exports .... 55,262,272 49,599,218 Closer scrutiny of the statistics' reveals the cause of rlie unfavourable balance. The value and quantity of the Dominion’s exportable product, shrunk very materially during- February. Every item, .save oily timber, shows a shrinkage. It sh'oulcl not be assumed that the unfavourable balance can be attributed altogether to a fall in prices, since nearly every item of produce lias sluunlc in quantity ns well as value. The following table affords a comparison of the value of Dominion produce exported in February 1925 and 192 G, together with n summary of New Zealand produce exported:

No nen-ious concern i-eed he felt that, tlie volume of the Dominion exports shows such a heavy drop, since it may ho assumed that, interruption in tbo shipping' somewhat disorganised the Dominion’s oversea, trading arrangements. But there l.u.s heen no corresponding- shrinkage in the value of importations. The following statistical demonstration of the unfavourable' trend of the. balance of trade nff’onls an interesting study of the economic conditions now facino- 1 ] )f; Dominion: °

Exports. 1925. 1926. „, £ £ February • . . 5,336,263 4,331,287 Jan. and Feb. 15,032,322 9,369,265 Jw mouths ended February _ 49,599,213 Calendar year, 1925 .... . 55, 262,274 _

Imports. 1925. 1026. rehrrnry .. . 4,037,312 4,290,431 •Jaa. and I<eh. 8,846,260 8,951,247 1-months ended February _ 52,561,338 Calendar year 52,456,407 Siiic.o Hie Dominion needs a trade balance of sonietJiinc’ like. ■£5,500,001) a year .to' meet interest clnirn-es. due and payable in London on llio Dominion's indebtedness to the una.ncic.vs in tlie. ITomchind, the anxiety udtJi which the Government views the impending loan negotiations to provide funds to make up the deficiency in the country's tradebalance can he readily appreciated.

Exports. Feb. Fob. 1925 1920 £ Cheese . • • . 983,56/ 461,079 Jieel . . . . . 63,634 27,003 Lamb . . 413,230 Mutton . . . , 449,067 263,007 Wool . . • . 3,039,381 1,603,120 .1 allow . • . . 90,418 'limber . • • • 30,598 47,042 Total New Zealand Produce: 1923. 1926. .February £ ■ ■ ■ 8,253,726 4,289,656 Jan. and Feb 14,903,483 9,290,764

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/THD19260406.2.22

Bibliographic details
Ngā taipitopito pukapuka

Timaru Herald, Volume CXXIII, 6 April 1926, Page 6

Word count
Tapeke kupu
630

The Timaru Herald TUESDAY, APRIL 6, 1926. THE BALANCE OF TRADE. Timaru Herald, Volume CXXIII, 6 April 1926, Page 6

The Timaru Herald TUESDAY, APRIL 6, 1926. THE BALANCE OF TRADE. Timaru Herald, Volume CXXIII, 6 April 1926, Page 6

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