The Waikato Times FRIDAY, JULY 30, 1937. THE PRODUCTION YEAR.

Waikato Times, Volume 121, Issue 20259, 30 July 1937, Page 6

The Waikato Times FRIDAY, JULY 30, 1937. THE PRODUCTION YEAR.

The production year, which ends on June 30, provides the best basis for examining the overseas trade of the Dominion. The figures cover a complete season’s production, whereas both the calendar and the financial years make a summary division. The preliminary statement issued deals only with the declared values of exports and imports, so that it is not possible to ascertain to what extent the increases recorded, when compared with the previous year, have been due to higher price levels or to increased quantities. These particulars are usually published in the July Abstract of Statistics, and will be awaited with some interest. It is known that in the case of wool the increase in values has been a much more important factor than quantity. On the other hand the improved figures relating to cheese, and to some extent to butter, may have been due to both better prices and larger shipments. The value of the exports for the production year ended June 30, 1937; was £64,621,000, easily the highest level recorded for many years, if not, indeed, a record for a production year. The productive capacity of the country has been proved, and provided price levels are stable at reasonable levels its economic progress should be assured. New Zealand was in a position, as a producer of foodstuffs and raw materials, to benefit by any upward turn of the overseas markets and the fact that in two years the value of exports has increased by nearly £22,000,000 affords evidence of that fact. A similar advance next year would mean that exports had been doubled in the short space of five years. The value of exports has created a substantial trade balance overseas, exceeding £14,500,000 for the production year, and with another season at hand there should be no cause to fear that this balance will not be maintained, thus making it easy for the authorities to meet national overseas commitments.

Concurrently with the advance in exports has been the increase in imports. They have exceeded those of 1935-36 by about £10,500,000 and the total is nearly double that of 1932-33. Many factors have contributed to swell the volume of imports, and the purchasing power of the Dominion is one of the strong factors that should influence the negotiations that are in train with Canada for a new trading agreement. New Zealand has been an important market for several of the overseas units of the Empire, and, while a balance is not to be expected in these matters, there is a strong claim for wider facilities for the marketing of New Zealand produce to bring the margin within reasonable limits. The greater volume o£ imports, by raising the Customs returns to very high levels, must have materially assisted the Government in its financial arrangements, and it will be interesting to see whether, in his Estimates, the Minister of Finance counts on a continuance of this state of affairs. Doubtless the figures will be interpreted by people according to their political views, but if there has been a more important factor in restoring prosperity in the Dominion than the improved return for its primary products it will be for those who can name it to do so, for it cannot be said to be obvious.