DEPARTMENT OF INDUSTRIES AND COMMERCE (SIXTEENTH ANNUAL REPORT OF THE).

Appendix to the Journals of the House of Representatives, 1933 Session I, H-44

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1933. NEW ZEALAND.

DEPARTMENT OF INDUSTRIES AND COMMERCE (SIXTEENTH ANNUAL REPORT OF THE).

Presented to both Houses of the General Assembly by Command of His Excellency.

Wellington, 28th September, 1933. Your Excellency,— I have the honour to submit for your Excellency's information the report of the Department of Industries and Commerce for the past year. I have, &c, R. Masters, Minister of Industries and Commerce. His Excellency the Governor-General of the Dominion of New Zealand.

Wellington, 18th September, 1933. Sm,— I have the honour to submit the annual report of the Department of Industries and Commerce. This report deals with the work of the Department since the previous report was placed before Parliament, and covers generally the period ended 30th April, 1933. In certain instances, however, matters subsequent to that date are also referred to. I have, &c, G. W. Clinkard, Secretary. The Hon. R. Masters, Minister of Industries and Commerce.

BANKING RETURNS. The latest returns of the six trading banks in New Zealand briefly commented upon below cover the quarter ended the 30th June, 1933. Certain features of the returns indicate a slight improvement in the general business outlook, and reflect to a greater or lesser degree the return of some measure of optimism and confidence to business circles in New Zealand in recent months. Deposits for the quarter ended 30th June, 1933 (exclusive of Government deposits), totalled £55,734,003, as compared with £52,216,782 for the corresponding quarter of 1932, an increase of £3,517,221.' Advances, on the other hand, aggregated £46,757,112, as against £50,581,395 for the quarter ended 30th June, 1932, a decrease of £3,824,283. As a result, there was an excess of deposits over advances for the past quarter of £8,976,891, as compared with a similar excess of £1,635,387 for the corresponding period of the previous year. The relation of deposits to advances for the quarter ended 30th June in each of the past seven years is shown in the following table : —

The deposits for the past quarter, totalling £55,734,003, consisted of free or non-interest-bearing deposits to the extent of £18,866,445, and fixed or interest-bearing deposits amounting to £36,867,558. These figures compare with £16,815,882 and £35,400,900 for free and fixed deposits respectively for the quarter ended 30th June, 1932. For the past quarter the former class of deposits consequently showed an increase of £2,050,563 and the latter class an increase of £1,466,658.

Excess of Quarter ended 30th June, Deposits. Advances. Deposits. | Advances. £ £ £ £ 1927 .. .. .. 46,490,366 50,753,106 .. 4,262,740 1928 . •• •• 52,947,133 45,426,955 7,520,178 1929 .. .. 57,051,894 47,407,211 9,644,683 1930 ' .. .. 53,748,038 54,063,162 .. 315,124 1931 ' .. .. 51,169,387 53,395,535 .. 2,226,148 1932 . .. .. 52,216,782 50,581,395 1,635,387 1933 • .. .. 55,734,003 46,757,112 8,976,891 „

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The increase in free deposits is of particular interest and importance, because it marks a departure from a trend which has been in evidence right throughout the period of the depression—namely, a steady decline in the volume of free deposits. From 1927 to 1929 this class of deposits was steadily increasing, and in the last-mentioned year totalled £26,810,881. From that time until 1932 free deposits revealed a striking decline, and in the latter year reached the lowest limit attained in any of the June quarters covered by the table below—namely, £16,815,882. For the past quarter, as mentioned above, there was an increase of £2,050,563. Fixed deposits, on the other hand, have steadily risen throughout the period covered by the foregoing table. For the June quarter of 1927 their total was £21,749,104, and by the June quarter of the current year had reached the high figure of £36,867,558. The significance of the increase in free deposits for the past quarter lies in the possibility of its indicating a transference of funds from fixed deposit consequent upon the return of some small measure of confidence in business and industrial conditions. The relative movements of the two classes of deposits for the quarter ended 30th June in each of the past seven years are shown in the table which follows : —

Deposits shown in the foregoing tables do not include Government deposits, which for the quarter ended 30th June, 1933, amounted to £1,740,307, as compared with £1,796,518 for the corresponding quarter of the previous year, a reduction of £56,211. Advances for the past quarter, which, as previously mentioned, totalled £46,757,112, comprised ordinary advances aggregating £46,147,379, and notes and bills discounted amounting to £609,733. In comparison with these figures, ordinary advances for the quarter ended 30th June, 1932, totalled £49,915,034, and notes and bills discounted £666,361. The returns for the quarter ended 30th June, 1933, consequently show decreases of £3,767,655 and £56,628 respectively in ordinary advances and in notes and bills discounted. The average notes in circulation for the quarter ended 30th June, 1933, amounted to £6,305,060, as compared with £6,021,366 for the corresponding period of 1932, an increase of £283,694. Coin and bullion, on the other hand, showed a reduction of £1,129,130 for the past quarter, the total being £5,078,458, as compared with £6,207,588 for the quarter ended 30th June, 1932. GENERAL TRADE REVIEW. In accordance with previous practice, a brief review is made of the statistics of the overseas trade of New Zealand for the past calendar year. For the year ended 31st December, 1932, the value of exports from the Dominion was £36,965,780, as compared with £35,153,028 for the previous year, an increase of £1,812,752. Imports for 1932 aggregated £23,045,106, a reduction of £1,767,852 as compared with the figures for 1931, in which year imports were assessed at £24,812,958. The foregoing figures are inclusive of specie, exports of which during 1932 were £1,355,861, as compared with £202,330 in 1931. Specie imports were unimportant in both years, totalling £55,310 and £56,155 respectively. Since New Zealand currency fell to a discount on sterling at the beginning of 1930, exports of merchandise have been expressed in terms of New Zealand currency, imports of merchandise from Australia in terms of Australian currency, and imports from other countries in terms of sterling. Specie exports and imports are, of course, recorded at their face value. In making a comparison of one year's trade with that of another, it is preferable to omit specie exports and imports, which, generally speaking, represent payments of debts and not additional trade, and the inclusion of which tends to obscure the trade position and movement. Such a comparison is made in the table below, specie being omitted, but it is as well to point out that exports of uncoined gold, which in the case of New Zealand ranks as an ordinary export commodity, are included. The table covers the past ten years, for the last thiee of which the figures of balance of trade are shown in terms of New Zealand currency : —

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Quarter ended 30th June, Fixed Deposits. Free Deposits. Total. £ £ £ 1927 .. .. .. 21,749,104 24,741,262 46,490,366 1928 .. .. .. 27,589,988 25,357,145 52,947,133 1929 .. .. .. 30,241,013 26,810,881 57,051,894 1930 .. .. .. 30,522,174 23,225,864 53,748,038 1931 .. .. .. 33,045,225 18,124,162 51,169,387 1932 .. .. .. 35,400,900 16,815,882 52,216,782 1933 .. .. .. 36,867,558 18,866,445 55,734,003

Excess of Year ended 31st December, Imports. Exports. , Imports. | Exports. £ £ £ £ 1923 .. .. .. .. 43,363,983 45,939,793 .. . 2,575,810 1924 .. .. .. .. 48,527,603 52,509,223 .. 3,981,620 1925 .. .. .. .. 52,425,757 55,243,047 .. 2,817,290 1926 .. .. .. .. 49,811,763 45,268,924 4,542,839 1927 .. .. .. .. 44,782,666 48,496,354 .. 3,713,688 1928 .. .. .. .. 44,844,102 55,570,381 .. 10,726,279 1929 .. .. .. .. 48,734,472 54,930,063 .. 6,195,591 1930 .. .. .. .. 42,662,827 44,940,517 .. 601,000* 1931 .. .. .. .. 24,756,803 34,950,698 .. 8,453,000* 1932 .. .. 22,989,796 35,609,919 10,964,000* * In terms of New Zealand currency.

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Exports. The table below sets out the quantities and values of the principal commodities exported from New Zealand in each of the past two calendar years :—

The foregoing comparison shows that greater quantities of all the classes of produce shown were shipped in 1932 than in 1931, with the exception of kauri-gum, in which case a decrease was recorded. Increases in values were recorded, however, only in the case of cheese, frozen mutton, wool, tallow. and gold, receding prices during the year bringing about decreases in the values of the other items enumerated despite increases in quantities shipped. The direction of our export trade in 1932 is disclosed by the table which follows, the figures for the three previous years also being given for purposes of comparison : —

Value of New Zealand's Exports (Including Specie) according to County of Destination, 1929-32.

Exports to all British countries during 1932 increased by £1,776,612, and those to foreign countries increased by £36,140. In 1932 exports to British countries represented 93-2 per cent, of total exports, as compared with 93-0 per cent, in 1931, while exports to foreign countries represented 6-8 per cent, in 1932, in comparison with 7-0 per cent, in 1931. The percentages of total exports shipped to each of the principal countries trading with the Dominion during the past four calendar years are shown in the following table : —

The principal feature of the foregoing table is, of course, the very high proportion of the total value of our export trade conducted with the United Kingdom —88-02 per cent, in 1931 and 87-79 per cent, in 1932. Other features worthy of note are the recessions in the percentages of exports to Canada and the United States over the past four years.

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1932. 1931. Item. Quantity. Value. Quantity. Value. £ £ Butter .. .. .. Cwt. 2,185,545 10,639,053 1,988,566 10,649,527 Cheese .. .. .. „ 1,790,431 4,951,268 1,636,347 4,461,293 Beef, frozen .. .. „ 443,795 366,713 352,649 403,951 Lamb, frozen .. .. „ 2,507,777 6,027,319 2,404,801 6,426,020 Mutton, frozen .. .. „ 1,339,349 1,466,425 1,053,203 1,432,729 Hides and calf-skins .. No. 1,149,760 306,053 961,590 337,296 Eabbit-skins .. .. „ 6,660,140 70,016 6,174,092 108,841 Pelts .. .. •• „ 11,999,210 542,165 10,419,882 621,757 Wool .. .. .. Bales 699,126 5,740,821 618,419 5,515,376 Tallow .. .. .. Tons 25,377 462,081 23,264 413,080 Kauri-gum .. .. „ 2,068 62,137 3,058 128,095 Gold .. .. .. Oz. 217,550 1,171,873 140,975 581,042 Sausage-casings .. .. lb. 3,772,063 '266,273 3,661,251 399,426 Other items .. .. .. .. 4,893,583 .. 3,674,595 Total exports .. .. 36,965,780 .. 35,153,028

1929. 1930. 1931. 1932. British Possessions, Protectorates, &c.— £ £ £ £ United Kingdom .. .. .. 40,957,043 36,015,303 30,940,654 32,449,231 Australia .. .. .. .. 2,338,4ln 1,562,281 1,169,055 1,444,860 Canada .. .. .. .. 3,353,975 2,539,212 256,890 244,160 All other British countries .. .. 809,944 761,077 311,114 316,074 Totals, British countries .. 47,459,372 40,877,873 32,677,713 34,454,325 Foreign Countries and Possessions— United States .. .. .. 3,653,427 2,116,752 920,931 940,015 Belgium .. .. .. .. 248,705 199,048 146,335 167,629 France .. .. .. .. 1,768,399 519,727 419,016 508,960 Germany .. .. .. .. 1,220,552 401,084 309,847 289,917 Japan .. .. .. .. 428,577 154,741 267,899 236,799 All other foreign countries .. .. 800,031 671,467 411,287 368,135 Totals, all foreign countries .. 8,119,691 4,062,819 2,475,315 2,511,455 Totals, all countries .. 55,579,063 44,940,692 35,153,028 36,965,780

Country of Destination. 1929. 1930. 1931. 1932. Per Cent. Per Cent. Per Cent. Per Cent. United Kingdom .. .. .. 73-69 80-17 88-02 87-79 Australia .. .. .. .. 4-21 3-45 3-33 3-91 Canada .. .. .. .. 6-03 5-65 0-73 0-66 United States 6-57 4-71 2-62 2-54 Belgium .. .. .. .. 0-45 0-44 0-42 0-45 France .. .. .. •• 3-18 1-15 1-19 1-38 Germany .. .. .. •• 2-20 0-89 0-88 0-79 Japan .. .. .. 0-77 0-35 0-76 0-64

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Imports. The table below sets out the quantities and values of I he principal items imported into New Zealand in each of the past two calendar years :—

The principal countries of origin of New Zealand's imports during 1932 are shown in the next table in comparison with the figures for the three preceding years.

Value of New Zealand's Imports (including Specie) according to County of Origin, 1929-32.

Imports from British countries during 1932 declined by £873,623, while imports from foreign countries receded by £894,229. &

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1932. 1931. Item. Quantity. Value. Quantity. Value. £ f Wheat •• •• •• •• Centals 772,189 246,602 113,276 33,507 Flour •■ •• ■• •• ,, 260,055 159,079 236,428 123,267 Su 8 ar Cwt. 1,595,245 613,218 1,587,217 575,108 Tea •• ■• •• .. lb. 10,414,666 ! 378,680 12,115,278 650,550 Whisky.. •• •• •• Gal. 260,159 i 256,427 255,499; 259,328 Cigarettes lb. 492,956: 178,429 ! 525,074! 187,755 Tobacco •• •• ■• • „ 2,695,344! 397,301 3,096,260 475,285 A PP arel .. 1,336,913 .. 1,680,930 Boots and shoes .. .. .. Doz. prs. 205,191 ; 413,605 152,555 445,576 Carpets and floor-coverings.. .. .. .. 225,263 .. 237,831 Drapery, &c. .. .. .. .. '.. 27o'22O .. 296^131 Cotton piece-goods .. 1,372,105 .. 1,161,161 Silk piece-goods .. 677,002 .. 610,191 Woollen piece-goods .. .. .. .. 424,963 .. 401,513 Petrol and kerosene .. .. Gal. 64,001,195 1,225,211 65,535,249 1,337,840 Coal •• ■• •• •• Tons 103,533 111,377 179,060 194,137 Hardware .. .. .. .. .. 316,462, .. 392,994 Electrical equipment .. 934,258 .. 1,302,545 Timber .. .. .. .. ,, .. 85,759 222 681 Motor-vehicles .. .. ..No. 3,662' 527*212 4,014 | 5781039 Motor-tires .. .. .. ... .. 608,696 .. 518,922 Othenmports .. .. .. .. .. 12,286,324 .. 13,127,667 j , Total imports .. 23,045,106 .. 24,812,958

1929. 1930. 1931. 1932. i^ British Possessions, Protectorates, &c. — £ £ £ £ United Kingdom .. .. .. 22,560,143 20,333,986 12,192,649 11496 027 Indla 766,756 637,832 392,088 354.647 Ceylon 923,748 704,759 617,042 351.567 bouth African Union .. .. .. 100,988 92,006 69 978 76 970 <? anada 4,792,820 3,802,925 1,224,569 l,007J78 Australia 3,258,727 3,308,915 2,437,955 2,681,393 ''J 1 , ¥ 174,894 200,877 102,979 106,041 All other British countries .. .. 516,893 510,637 394,479 484,293 Totals, British counties.. .. 33,094,969 29,591,937 17,431,739 16,558,116 Foreign Countries and Possessions— United States 9,319,926 7,573,053 3,885,073 3,267,086 * rance 727,388 608,076 327,646 269,789 Germany 940,863 975,460 574,500 459,971 Belgium 587,463 448,762 289,478 179 970 £ a P a " TJ . 625 > 714 565,264 304,532 434^636 Dutch East Indies 1,152,705 811,372 848,216 793 622 All other foreign countries .. .. 2,348,949 2,451,990 1,151,774 1,081,916 Totals, all foreign countries .. 15,703,008 13,433,977 7,381,219 6,486,990 Totals, all countries .. .. 48,797,977 43,025,914 24,812,958 23,045,106

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Imports from British countries in 1932 represented 71-8 per cent, of total imports, as compared with 70-3 per cent, in 1931, while imports from foreign sources represented 28-2 per cent, and 29-7 per cent, in 1932 and 1931 respectively. In the table given below imports from each of the principal countries trading with New Zealand for the past four years are shown as percentages of total imports:—

The principal features disclosed by the foregoing table are steady increases in the proportion of our total imports obtained from the United Kingdom and Australia, and decreases in the proportion derived from Canada and the United States. Trade with the United Kingdom. New Zealand's exports to the United Kingdom for the calendar year 1932 were valued at £32,449,231, as compared with £30,940,654 for 1931, an increase of £1,508,577. Imports from the United Kingdom, on the other hand, were valued at £11,496,027 for 1932, as against £12,192,649 for the preceding year, a reduction of £696,622. Our exports to the United Kingdom for 1932 represented 87-79 per cent, of total exports, in comparison with 88-02 per cent, in 1931, while the value of imports in the same two years represented 49-91 per cent, and 49-17 per cent, respectively. It is worthy of note that the proportion of our imports obtained from the United Kingdom has risen steadily for the past four years —namely, from 46-25 per cent, in 1929 to 49-91 per cent, in 1932. Our great dependence upon the United Kingdom as a market for our principal primary products is well illustrated by the foregoing statistics of exports. At the same time, it should be remembered, in any discussions upon the importance of that market to New Zealand, that a substantial part of our exports is sent thither merely as a convenient depot for subsequent sale and shipment to the Continent or to America. In normal years this re-export trade in New Zealand produce from the United Kingdom amounts to between £7,000,000 and £8,000,000 per annum, but in 1930 and 1931, the latest years for which figures are available, it amounted to between £4,000,000 and £5,000,000. Trade with Australia. The value of our trade with Australia in each of the past five calendar years is shown in the table below :—

It is satisfactory to be able to report that a substantial increase in our trade with Australia took place during 1932, and it is interesting to note that the Commonwealth is now our second-best customer. Numerous trade inquiries have been carried out by the New Zealand Trade and Tourist Commissioner in Sydney during the past year, and reports upon the prospects of developing markets for our products have been submitted by him from time to time. Particular attention has been paid to such commodities as timber, onions, fish, hides and pelts, and Phormium lenax, and the increases in trade in these and other products were fairly substantial. Now that the exchange between Australia and New Zealand is at par, the Trade Commissioner anticipates that greater quantities of hides, skins, and pelts, timber, hemp, and fish will be purchased from New Zealand in the future.

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Country of Origin. 1929. 1930. 1931. 1932. Per Cent. Per Cent. Per Cent. Per Cent. United Kingdom .. .. .. 46-25 47-27 49-17 49-91 India .. .. .. .. 1-57 1-48 1-58 1-54 Ceylon .. .. .. .. 1-88 1-64 2-49 1-53 South African Union .. .. 0-21 0-21 0-28 0-33 Canada .. .. .. .. 9-81 8-84 4-94 4-37 Australia .. .. .. .. 6-68 7-69 9-80 11-64 Fiji .. .. .. .. 0-36 0-47 0-42 0-46 United States .. .. .. 19-10 17-60 15-65 14-18 France .. .. .. .. 1-49 1-41 1-32 1-17 Germany .. .. .. .. 1-93 2-27 2-32 2-00 Belgium .. .. .. .. 1-16 1-04 1-17 0-78 Japan .. .. .. .. 1-28 1-31 1-23 1-89 Dutch East Indies .. .. .. 2-36 1-88 3-42 3-45

Year ended Exports to Imports from t t 1 t a 31st December, Australia. Australia. lotal lraae " I ; £ £ £ 1928 .. .. 3,402,655 3,499,151 6,901,806 1929 .. .. 2,338,410 3,258,727 5,597,137 1930 .. .. 1,562,281 3,308,915 4,871,196 1931 .. .. 1,169,055 2,437,955 3,607,010 1932 .. .. 1,444,860 2,681,393 4,126,253

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The volume and value of some of the principal commodities exported to Australia in each of the past two years are shown hereunder : —

The Trade Commissioner recently visited the Dominion and took the opportunity of getting into personal touch with the business and commercial community in the principal centres. Trade with Canada. The value of our import, export, and total trade with Canada in each of the past five years is shown in the following table, together with the percentages which such trade bears to total imports and exports: —

As will be observed, both our import and export trade showed a further decline during the past year. In making his annual report to the Department under date of the 12th June, 1933, the New Zealand Trade and Tourist Commissioner at Toronto states that the year was one of disappointment in Canada, as, for the most part, the hopeful forecasts so generally made a year previously were not realized. He states, however, that in recent months there has been an atmosphere of more confident assurance regarding the future than at any period during the past three years. Furthermore, the rise in wheat prices has considerably helped business generally. The Commissioner expresses the opinion that, unless serious international developments occur, there is good ground for hoping that in the coming season New Zealand's trade with Canada will increase substantially both in volume and value. So far as New Zealand's exports to Canada are concerned, the position should in all the circumstances be viewed with a certain measure of satisfaction, despite the slight falling-off in value during the past year. Out of twenty-one British countries exporting to Canada only three could claim increased values for the Canadian fiscal year 1932-33, and these values were slight. Foreign countries were even more adversely affected, of forty-two concerned only four increasing the value of trade. A further analysis leads the Trade Commissioner to conclude that no country gained at the expense of New Zealand, and that if our sales have fallen off it has been for reasons other than favour being given to competing countries. Special attention has been paid by the Commissioner to the development of our trade in such products as fresh fruit (apples), onions, hops, kauri-gum, seeds, hides and skins, frozen and tinned meats, butter, wool, gelatine, sausage-casings, hemp, cordage, eggs, &c. Comprehensive surveys have been made by the Commissioner during the year as to the possibilities of developing the markets for New Zealand products in Canada, and reports, some detailed and some in general terms, have been forwarded periodically to the Department. These surveys related to almost all the items covered by the trade treaty between Canada and New Zealand. The reports submitted following upon these surveys supplied information as to the possibilities of sales in the Canadian market, the nature of the competition to be faced, the methods of packing and governmental regulations to be observed, the names of suitable reputable agents, and generally the requisite data to enable exporters concerned to decide as to future action.

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1931. 1932. Quantity. Value. Quantity. Value. i Fish, frozen (blue cod, snapper, £ £ flounder, and other kinds) .. Cwt. 13,784 29,840 17,988 35,804 Sausage-casings .. .. lb. 190,169 7,071 270,302 8^384 Onions .. .. .. Tons .. .. 1,269 10.404 Hides, pelts, and skins—■ Calf-skins .. ..No. 126,418 18,542 316,206 42 262 Cattle-hides .. .. „ 59,465 60,231 117,403 89,701 Deer-skins .. .. 4,890 1,044 7,420 2,164 Sheep-skins with wool .. „ 3,473 820 12,966 l^440 Sheep-skins without wool .. „ 244,682 11,938 365,915 12,864 Phormium tenax .. .. Tons 1,038 18,340 2,085 27^344 Grass and clover seeds .. Cwt. 12,836 27,235 15,944 40,024 Pumice sand and stone .. Tons 2,198 7,203 3,045 11 361 Sugar of milk .. .. lb. 92,960 2,246 172,480 4,'763 Timber, sawn .. .. Sup. ft. 16,838,988 161,686 26,244,540 239,313

Year ended 31st December, *%£* *»g«£*» 'XST Total Trade. Exports. Imports. £ £ £ 1928 .. .. .. 2,469,150 4-39 3,258,828 7-26 5,727 978 1929 3,353,975 j 6-03 4,792,820 9-81 8,146 795 1930 2,539,212 5-65 3,802,925 8-84 6,342,137 1931 .. .. .. 256,890 0-73 1,224,569 4-94 1,481 459 1932 244,160 0-66 1,007,178 4-37 1,251,338

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Island Trade. Fiji. The statistical returns of the trade and commerce of the Colony of Fiji for 1932 provide the following details of the values of imports, exports, and total trade of the colony for each of the past five calendar years : —

The next table shows how the trade was principally distributed during 1932 :—

There was a marked increase in the colony's export trade with the United Kingdom in 1932 as compared with 1931, the percentage of total exports supplied in those years being 49-86 per cent, and 12-] 1 per cent, respectively. This increased trade with the United Kingdom was due to the fact that over 54 per cent, of sugar exported was absorbed by that country. Exports to other British possessions fell from 73-67 per cent, in 1931 to 45-74 per cent, in 1932, while exports to foreign countries dropped from 13-91 per cent, in 1931 to 4-27 per cent, in 1932. The proportion of the total import trade of Fiji conducted with the undermentioned countries over the past five years was as follows :—

As will be readily observed, 11-69 per cent, of Fiji's imports in 1932 were obtained from New New Zealand, this representing a satisfactory increase on the figure of 8-76 per cent, recorded for the previous year. Imports into Fiji from New Zealand, amounting in 1932 to £100,255, consisted of a fairly wide range of commodities, of which the following were the most important: Bacon and hams, £2,791 ; bags and sacks, £16,183 ; drapery, £2,390 ; fresh fruit and vegetables, £7,584 ; grease and tallow, £4,599; hardware, £2,024 ; manure, £4,150 ; meats, £5,317 ; photographs and films, £22,888 : soap (plain) £2,878 ; sugar, £2,472 ; and tea, £5,459. Exports from Fiji to New Zealand in 1932 totalled £165,270, the principal items covered by this amount being bananas (£66,677), and raw sugar (£54,844).

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fear ended 31st December, Imports into Fiji. Exports from Fiji. Total Trade. £ £ £ 1928 .. .. .. .. .. 1,483,169 2,701,251 4,184,420 1929 .. .. .. .. .. 1,468,609 1,775,998 3,244,607 1930 .. .. .. .. .. 1,219,184 1,484,526 2,703,710 1931 .. .. .. .. .. 929,514 1,000,187 1,929,701 1932 .. .. .. .. .. 857,346 1,698,964 2,556,310 !

Country. Imports into Fiji. Exports from Fiji. Total Trade. £ £ £ United Kingdom .. .. .. .. 250,748 847,053 1,097,801 Australia .. .. .. .. .. 317,046 50,078 367,124 Canada .. .. .. .. .. 25,675 530,365 556,040 India .. .. .. .. .. 33,944 208 34,152 New Zealand .. .. .. .. .. 100,255 165,270 265,525 Japan .. .. .. .. .. 29,814 4,135 33,949 Dutch East Indies .. .. .. .. 22,633 .. 22,633 United States .. .. .. .. .. 25,937 38,819 64,756

Country. 1928. 1929. 1930. 1931. 1932. Per Cent. Per Cent. Per Cent. Per Cent. Per Cent. United Kingdom .. .. 27-28 28-50 30-65 27-77 29-25 Australia .. .. .. 41-90 37-04 36-90 40-05 36-98 Canada .. .. . 4-19 5-77 4-94 4-32 3-00 India .. .. .. 3-00 4-03 3-55 3-51 3-96 New Zealand .. .. 9-48 9-56 8-39 8-76 11-69 Japan .. .. .. 1-94 1-60 1-45 2-57 3-48 Dutch East Indies .. .. 0-80 1-41 1-80 2-16 2-64 United States .. .. 8-90 8-20 7-06 5-57 3-03

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The detailed figures of imports and exports here quoted, like the preceding ones, are taken from the trade returns of the Colony of Fiji for 1932, and not from the statistical returns of trade and shipping compiled in New Zealand. An invitation was received by the Department from the Fiji Show Association to participate in their Agricultural, Horticultural, and Industrial Show held on the 11th and 12th October, 1932. The Department approached manufacturers' associations, Chambers of Commerce, and others who were likely to be interested, and suggested that opportunity should be taken of the Exhibition to extend the present trade with Fiji. The Union Steam Ship Co., on being approached by the Department, agreed to carry exhibits at half rates. As the result of the negotiations, it was finally arranged that the Auckland Manufacturers' Association should be responsible for the collection and despatch of exhibits, and, as a result of their efforts, 105 packages of exhibits, extending over a very wide range of products, were despatched by twenty-four manufacturers and exporters. Included in the exhibits were footwear, brusliware, aerated waters, woollen goods and clothing, cordage, soap, wine, confectionery, preserved meat, &c. These exhibits created widespread interest from those who attended the Exhibition, and the Governor of Fiji, in opening the Exhibition, made special reference to the New Zealand section. The report of his remarks was cabled to London and appeared in the London press. Prior to the Ottawa Conference, New Zealand enjoyed preferential tariff rates, but as one of the outcomes of the Conference discrimination against British Dominions was removed, and Australia was placed on an equal footing with New Zealand, which will have the effect of seriously curtailing New Zealand's export trade with Fiji. Tonga. The value of our export trade with the Kingdom of Tonga showed a further decline on the figures for the four previous years. The actual value recorded was £27,266, as compared with £29,926 for 1931. Imports into New Zealand from Tonga showed a substantial advance on the figures for the four preceding years, the value being £9,412. This compared with £625 in 1931. The increase in 1932 was due to increased importations of bananas, the figures for which were 3,291,470 lb., valued at £9,294, in comparison with only 2,419 lb., valued at £19, in 1931. The following table shows the values of exports to and imports from Tonga in each of the past five calendar years : —

The comparatively small value of importations from Tonga is due to the fact that the export trade of that kingdom is mainly confined to copra, a commodity which does not enter into New Zealand's import trade. Imports into Tonga consist of a fairly wide range of articles, the principal suppliers being New Zealand, Australia, and the United Kingdom. The principal commodities derived from New Zealand in 1932 were as follows, their values being shown in parentheses: Tinned meats (£7,915); meats, all classes, other than tinned (£1,279) ; butter (£1,219) ; sugar (£1,601); textile piece goods (£2,270); miscellaneous hardware and ironmongery, &c. (£775). Western Samoa. The value of the total import and export trade of Western Samoa in each of the past five calendar years is shown in the following table:—

8

Year ended 31st December, Exports to Tonga. Imports from Tonga. £ £ 1928 .. .. .. .. 86,695 14 1929 .. .. .. .. 58,599 138 1930 47,958 19 1931 .. .. .. •• 29,926 625 1932 .. .. .. .. 27,266 9,412

,. , „ . Imports into Exports from rp.,, . Year ended 31st December, moa g amoa Total Trade. £ £ £ 1928 .. .. .. .. I 326,553 422,175 748,728 1929 .. .. .. .. 288,849 293,938 582,787 1930 .. .. .. .. 275,355 284,515 559,870 1931 .. .. .. .. 164,950 194,447 359,397 1932 .. .. .. ..I 150,902 183,028 333,930

H.—44-

Of the total value of importations in 1932, aggregating £150,902, the following amounts were obtained from the countries named : New Zealand £54,403 ; United Kingdom, £32,213 ; Australia, £31,707; United States, £12,105 ; Fiji, £9,402 ; Canada, £3,617 ; Dutch East Indies, £2,306 ; and and Japan, £1,710. These eight countries together supplied 97-72 per cent, of the imports of Western Samoa in 1932. Exports from Western Samoa in 1932 totalling £183,028, were shipped to the countries mentioned below, and to the extent indicated : — £ European countries (exact destination unknown) .. .. .. 96,546 United Kingdom .. .. .. .. ■■ •• •• 46,654 New Zealand 22,578 United States 12,181 Holland 2,612 Other countries .. .. ■ • • • • ■ • ■ • • 2, 457 Total £183,028 As will be observed, New Zealand ranked third in importance as a market for the products of this Territory. The main item taken by New Zealand was bananas, the export value of which amounted to £20,016. This, however, was considerably less than in the previous year, when the value taken by New Zealand was £39,022. The balance of exports to New Zealand mainly comprised specie (silver coin) to the value of £1,500, and cocoa-beans to the value of £622. It is of interest to note that in 1931 the United States occupied second position and the United Kingdom fourth position so far as purchasers of the products of Western Samoa were concerned, the values taken by each being £59,687 and £15,668 respectively. In 1932, however, the positions were reversed, the United Kingdom taking £46,654 worth, and the United States £12,181 worth. The quantities and values of the principal exports of Western Samoa during the past five years are shown below : —

Cook and Niue Islands. Exports from the Cook and Niue Islands together in 1932 were valued at £87,396 in comparison with £87,136 in 1931, while imports to these islands in 1932 amounted to £78,341, as compared with £80,767 in the preceding year. The figures of exports and imports of these islands are shown below for the past five years : —

As might naturally be expected, most of the trade of the Group is conducted with New Zealand, whose share of the total trade of £165,737 in 1932 was £130,631, or 78-8 per cent. The United States has stepped into the second positional] recent years.

2—H. 44.

9

Cocoa. Copra. Rubber. Bananas. Year ended _ — 31st December, Tons. Value. Tons. Value. Tons. Valuo. j Cases. Value. __l i ! I ! £ £ £ £ 1928 .. 959 69,507 15,989 319,259 107 17,268 1929 677 46,286 12,941 205,330 110 9,613 53,652 24,640 1930 ' 1 007 61,294 12,285 166,221 101 6,461 95,867 44,259 1931 620 35,284 11,062 109,220 41 1,140 85,225 39,022 1932 .. 825 49,712 10,879 108,698 6 85 66,715 20,016 |_ I

Exports. Imports. Year ended ■ Cook Islands. Niue Island. Total. Cook Islands. ; Niue Island. Total. £££*££ loos 133,051 20,938 153,989 117,639 18,637 136,276 iQoq 124 486 22,206 146,692 106,835 19,107 125,942 1930 109,438 15,877 125,315 103,468 18,630 122,098 1931 79,945 7,191 87,136 69,260 11,507 80,767 1932 " ! 73,409 13,987 87,396 63,585 14,756 78,341

H.—44

The distribution of the trade of the Group in 1932 is shown hereunder :—

The principal exports from the Lower Group are oranges, bananas, tomatoes, and copra ; from the Northern Group copra and pearl shell; and from Niue, copra, bananas, and the well-known Niuean hats and fancy baskets. '•Vi ■■ r.f): ' Trade with the United States. Exports from New Zealand to the United States in 1932 were valued at £940,015 as compared with £920,931 in 1931. Expressed as percentages, these figures represented 2-54 per cent, and 2-62 per cent, of total exports in those years respectively. Imports into New Zealand from the United States during 1932 were valued at £3,267,086 in comparison with £3,885,073 for the previous year, a reduction of £617,987. These figures represented 14-18 and 15-65 per cent, respectively in 1932 and 1931. The proportion of our imports obtained from the United States has shown » substantial decline over the past four years—namely, from 19-10 per cent, in 1929 to 14-18 per cent, in 1932. The position so far as our trade with the United States is concerned during the past five years is briefly summarized in the table below :—

The values of the principal items exported to the United States in 1932 are shown below in comparison with the figures for the three previous years:—

The most [inportani item in our import trade in [932 was motor-spirii and other mineral oils, which item was valued at £1,480,545 in comparison with £1,610,317« in L 931.

10

Exports. Imports. Country. : F Zn C r k FromNi - Total - 'lint Total. ££££££ New Zealand ., .. 59,980 10,820 70,800 48,263 11,568 59,831 United States .. .. 4,669 2,570 7,239 4,403 64 4,467 United Kingdom .. .. 2,145 .. 2,145 5,464 2,424 7,888 France .. .. .. 5,373 .. 5,373 Western Samoa .. .. 1,206 576 1,782 .. 209 209 American Samoa .. .... 4 4 .. 4 4 Tahiti .. .. .. 36 .. 36 757 6 763 Canada .. .. .. .. .. .. .. 58 58 Australia .. .. .. .. .. .. 3,549 360 3,909 Fiji ■■ •• .... 7 7 .. 31 31 Tonga .. .. .... 10 10 .. 32 32 Other countries .. .. .. .. .. 1,149 .. 1,149 73,409 13,987 87,396 63,585 14,756 78,341

Year ended 31st December, Kxptirted t° the Per Cent, of Total Imports from the Per Cerft. of Total United States. Exports. United States. Imports. £ ! £ 1928 4,260,315 7-58 8,204,197 18-28 1929 .. .. .. 3,653,427 6-57 9.319,926 19-10 1930 .. .. .. 2,116,752 4-71 7,573,053 17-60 1931 .. .. .. 920,931 2-62 3,885,073 15-65 1932 .. .. .. 940,015 2-54 3,267,086 14-18

1 " 1929. 1930. I!).! I. 1932. . . J £ £ £ £ Hides, pelts, and skins (calf, cattle, 1,f>49,539 1,055,652 438,862 282,190 rali hit, sheep) Sausage casings and skins .. .. 262,559 331,627 151,592 99,674 Wool .. .. .. .. 656,656 267,720 41,278 32^044 Phormium tenax .. .. .. 138,776 83,255 4,115 1,768 Kauri-gum .. ,. .. .. 129,432 69,496 36,520 14*498 Frozen meat .. .. .. 338,385 16,020 1,26] 316 , " Seeds .. .. .. ... 70,01 r> 66,905 58,202 28,953

H.^4

The recent lifting of the embargo against New Zealand fruit by the United States is a matter of considerable importance to this Dominion, particularly to the fruit industry, and it is hoped that in the future this class of produce will rank as an important item in our export trade with that country. The development of our trade with the United States has again been given close consideration by the New Zealand Trade Commissioner in Toronto, and direct personal contact with traders in the larger cities on the Eastern seaboard of the United States has been made as opportunity offered. Particular attention has been given to New York and Boston, where agencies for most of the leading products from New Zealand exist. The principals have been called upon, and their good will and co-operation have been sought in order to foster sales. These calls are highly appreciated, and have been responsible for removing many misunderstandings and difficulties. Trade with the East. Every effort has been made by the Government and by this Department during the period under review to open up and develop markets for our produce in the East. As in most other parts of the world, however, the East has been seriously affected by the depression, and the purchasing-power of the peoples has suffered in consequence. For that reason it is not possible to see the results of those efforts reflected in any marked increase in the volume and value of our export trade to the East. When world economic conditions improve, however, it is hoped that the efforts that have been made will bear fruit. The Department has continued to supply to persons and firms throughout the Dominion interested in the question of trade with the East, information concerning market prospects obtained from time to time from its honorary representatives in various parts of the East, from the reports of the investigations made by the New Zealand Trade and Tourist Commissioner during the course of his visit to the Dutch East Indies and Malaya in 1931, and from various other sources. Numerous inquiries have been received during the past year from all parts of the East, particularly British Malaya, India, and China, for many classes of New Zealand products, and in all such cases the inquirers have been placed in touch with persons, firms, and organizations likely to be interested. The question of shipping facilities and freights between New Zealand and the East has been kept steadily in view by the Department, as it is recognized that these matters are of prime importance in connection with trade development. The Department recently arranged with a number of firms throughout the Dominion for a comprehensive display of New Zealand products to be made at an Empire Fair which took place at Hong Kong in May. This Fair proved to be a great success, and it is hoped that exports of certain products from New Zealand to Hong Kong will show some increase in the future as a direct result of the publicity obtained at the Fair. This Department arranged with the Union Steamship Co., Ltd., and the Huddart Parker Co., Ltd., for bona fide exhibits to be carried at half the ordinary freight rates between New Zealand and Australian ports, and the A. and 0. Line also agreed to carry such exhibits at half the ordinary rates between Australian ports and Hong Kong. The Department has honorary representatives in India, Ceylon, Hong Kong, and China, and these gentlemen are of considerable assistance in submitting market reports and other information essential to New Zealand exporters desirous of extending their trade with such countries. The following table shows the value of our export and import trade with various parts of the East for each of the past three calendar years : —

11

— . 1930. 1931. 1932. Exports to— £ £ £ Dutch East Indies .. .. .. 13,029 10,205 5,255 British Malaya .. .. .. 20,611 14,922 26,868 Burma .. .. .. .. 984 779 827 Ceylon .. .. .. .. 9,066 5,093 3,498 India .. .. .. .. 406,878 59,185 53,378 Hong Kong .. .. .. .. 14,085 14,165 14,153 China .. .. .. .. 36,493 17,625 15,413 Japan ., .. .. .. 154,741 267,899 236,799 Philippine Islands .. .. .. 12,491 5,414 1,081 Imports from — Dutch East Indies .. .. .. 811,372 848,216 793,647 British Malaya 79,382 56,949 86,431 Burma .. .. .. .. 25,443 10,459 13,437 Ceylon .. .. .. .. 704,759 617,042 351,598 India .. .. .. .. 637,832 392,088 354,752 Hong Kong .. .. .. .., 5,678 2,542 4,832 Japan .. .. .. .. 565,264 304,532 434,746 Philippine Islands .. .. .. 22,884 9,367 5,654 China 120,694 82,257 77,283

H.—44

A more correct comparison of our trade with the countries enumerated would perhaps be made by showing the volume of the various classes of commodities instead of the total value, for the reason that changes in the value of exports and imports are obscured by the price recessions that have occurred in recent years. While reductions have occurred in certain cases in the volume of our export trade, it is gratifying to find that, despite the adverse trading conditions existing in Eastern countries, increases in quantities of commodities shipped have occurred in certain other cases, and in others again that the volume has been more or less maintained throughout the period covered by the above table. Some of the principal commodities exported from New Zealand to the East have been selected and are shown below in terms of quantities : —

Overseas Trade Representatives. It is desired to take this opportunity of placing on record the Department's appreciation of the assistance and co-operation received from its representatives in various parts of the world throughout the period under review. Each year the services of the Department's overseas trade representatives are availed of to an ever-increasing extent, this being due to the greater recognition on the part of the business and commercial community generally in New Zealand of the necessity for the opening-up of new markets and the development of existing ones for our products overseas. This recognition brings about a consequent increase in the number of inquiries for information and reports concerning such markets, and a correspondingly greater demand on the services of the representatives overseas who are called upon to supply such information. Most of the Department's representatives abroad act in a purely honorary capacity, but there are two officers of the Department overseas who are engaged primarily in trade and tourist development work. These are the New Zealand Trade and Tourist Commissioners in Canada and Australia, and special mention must be made of the value of their services rendered during the past year. Every effort has been made by these gentlemen to increase the export trade of the Dominion with the countries in which they are located, and to further tourist traffic between those countries and New Zealand, and the value of their work in this connection is being increasingly recognized both here and abroad.

12

1930. 1931. 1932. • I WoolJapan .. .. .. .. Bales 6,972 18,613 22,090 India „ 25 1366 667 China .. .. .. .. 68 [116 82 TallowIndia Tons 957 1,169 1,626 Japan .. .. .. „ 218 1,492 473 ButterHong Kong .. .. .. .. Cwt. 265 453 1,079 India „ 759 786 968 Burma .. .. .. .. 135 106 126 Ceylon .. ■ .. .. „ 942 703 431 Malaya .. .. .. .. 2,374 1,650 363 China „ 4,386 648 1,449 Dutch East Indies .. .. „ 975 555 368 Japan .. .. .. .. 1,695 712 603 Philippine Islands .. .. „ 1,703 855 188 Casein— Japan .. .. .. .. 19,733 28,092 20,509 Cheese— China „ 788 445 745 Honey — Malaya .. .. .. .. Ib. 7,740 1,800 3,600 India .. .. .. .. „ .. 1,800 1,200 Milk and Cream — Burma .. .. . . .. „ .. 600 974 Hong Kong .. .. .. .. „ 4,700 20,724 15,844 Ceylon .. .. .. .. „ 55,764 31,360 16,800 India .. .. .. „ 3,360 5,460 8,220 Malaya .. .. .. .. „ 116,785 93,648 1,362,574 China .. .. .. .. „ 28,967 1,248 197,728 Japan .. .. .. .. „ 3,228 6,720 48,060 Dutch East Indies .. .. .. „ 38,920 58,880 16,570

H.—44

The attention of the business and commercial community in the Dominion is drawn to the facilities offered by the Government representatives, agents, and correspondents in various parts of the world. They are at the disposal of any person or firm desiring to extend trade relations with the countries concerned, and it is hoped that exporters and merchants in New Zealand will co-operate with the Department and with the Trade Commissioners and honorary representatives concerned by utilizing the services and facilities offered to the fullest possible extent. STORES CONTROL BOARD. A representative of the Department continues to act on the Stores Control Board Advisory Committee. The value of the stores purchased by Departments of State during the year ended 31st March, 1933, was £2,109,698, against £2,715,215 for the previous financial year. CHAMBERS OF COMMERCE. The Department continues to be represented by honorary membership on the executive of the Chamber of Commerce in each of the chief centres. The annual conference of the Associated Chambers of Commerce of New Zealand was held in Dunedin last October. The Conference agreed to the venue of the 1933 Congress of the Federation of Chambers of Commerce of the British Empire being held in London instead of New Zealand. MANUFACTURERS' ASSOCIATIONS. The District Officers of the Department in the four chief centres are closely associated with the Manufacturers' Associations, and attend in an advisory capacity the regular meetings of the executives. The Auckland Association in its forty-sixth annual report records a membership of 297. The Winter Exhibition was again held this year, with results that may, in view of present economic conditions, be considered satisfactory. Record entries were received in several sections, the standard of excellence being specially commented upon by the judges. The Wellington Association reported in its thirty-seventh annual report a membership of 233, an increase of thirty-two members during the year. During the year a " New-Zealand-made " Shopping Week was held. Gratifying response from retailers resulted in 419 shop windows being devoted exclusively to the display of New-Zealand-made goods. A window-dressing competition was held in connection with this effort and resulted in many entries being received. In conjunction with the Wellington Show Association the exhibition at the Winter Show Building, John Street, was held this year during Easter, Bth to 22nd April. The attendance reflected present economic conditions, and, although a fair number of interesting exhibits were staged, the support of the public was somewhat disappointing. The association has been active in assisting shopping-week efforts in other towns by the loan of propaganda material such as posters, windows-cards, &c. Among the towns that have staged these " weeks" have been Waipukurau, Masterton, Hawera, Palmerston North, Marton, Featherston, and Petone. The Canterbury Association held their fifty-third annual meeting. The membership now stands at 263. A " Made-in-New-Zealand " Week was held in May last, and proved a successful effort, judging by the generous support of retailers. The exhibits made by chemists illustrated the extension that has been made in the number of products now produced in New Zealand factories. The City Council materially assisted the effort by supplying the city streets with festoons of coloured lights and the Tramway Board with a specially illuminated tramcar for the occasion. The annual Winter Show was again held in the King Edward Barracks, and reports show that the attendance exceeded that of the previous year. The membership of the Dunedin Association at last annual meeting was 156, an increase of twelve for the year. The association in conjunction with the Dunedin Trade and Labour Council held a very successful Industrial Exhibition in the Drill-hall, Kensington, for a period of two weeks from 29th April. The attendance during the period was thirty thousand. The exhibition space of 6,945 square feet was taken by manufacturers who staged effective and attractive exhibits of New-Zealand-made goods. The association has been active in assisting New-Zealand-made Shopping Weeks in Gore, Riverton, Oamaru, and Cromwell. STATISTICS RELATING TO MANUFACTURING INDUSTRIES. The latest figures available are for the year ended 31st March, 1932. As might be expected, allround decreases are a feature of the summarized figures for 1931-32, as compared with 1930-31 and also 1929-30. The general decline in trade has had the effect of increasing the short time worked by factory employees, the number of short hours worked being increased by 1,535,326 to 4,998,983 as compared with the preceding year. Commencing with the year 1931-32, figures relating to the operation of electric tramways are being omitted from the statistics of factory production. The summary given hereunder excludes the operations of electric tramways for each of the two years shown.

13

H.^4

Analysis of the data for the various industries discloses the following principal differences between the year 1930-31 and 1931-32 :—

In the following tables the various classes of industries contributing to the factory production of the Dominion have been grouped according to general character :—

Table showing for the Years ended 31st March, 1929, 1930, 1931, and 1932, Figures relating to the various Industries classified into Three Groups as stated.

14

Year ended 31st March, ]mlex NumbeB> 1931-32 1931. 1932. < 1930 - 31 = 100 >- Establishments (number) .. .. 5,194 4,969 96 Persons engaged — Males (number) .. .. .. 61,094 52,922 87 Females (number) .. .. .. 16,820 15,775 94 Total number .. .. 77,914 68,697 88 Salaries and wages paid— £ £ To males .. .. .. .. 13,974,531 11,194,608 80 To females .. .. .. 1,642,521 1,448,327 88 Total 15,617,052 12,642,935 81 Motive power (horse-power) .. .. 528,647 533,788 102 £ £ Cost of materials used .. .. 48,458,356 42,343,078 87 Value of products .. .. .. 79,215,416 67,813,394 86 Added value .. .. .. .. 30,757,060 25,470,3IC 83 Value of — £ £ Land and buildings .. .. .. 23,563,842 22,988,577 98 Plant and machinery .. .. 43,254,308 42,918,441 99 Total ■■ ■■ 66,818,150 65,907,018 '.)'.)

v Persons Salaries and °° stof . Value of Value added Land Buildings, Year - engaged. Wages paid. Mate " als l-roducts. M Plant, and used. Manufacture. Machinery. I G'r<111 j> I. Group I includes meat freezing and preserving ; ham and bacon ouring ; butter and cheese factories ; sausage-casings; frllinongering and wool-scouring; tanning; boiling-down and manure-making; fish-curing; eawmilling ; limp crushing; brick, tile, and pottery making; concrete-block and fibrous-plaster making; flax-milling. Number. £ £ £ £ £ 1928-29.. i 23,720 5,364,956 39,010,688 51,202,132 12,191,444 13,926,193 1929-30.. 23,722 5,426,570 37,561,460 49,536,ICC 11,974,706 14,226,730 1930-31.. 21,038 4,909,796 28,905,662 39,824,484 10,918,822 1.1768 954 1931-32.. I 18,131 3,902,641 25,552,238 34,632,038 9,074,800 13,157,150 Group 2. Group 2 includes public utilities, gas-making and supply, electricity generation and supply. (Note. —Tramways arc now omitted from these statistics.) Number. £ t; £ £ £ 1928-29.. 4,257 j 1,078,949 3,714,632 5,363,533 1,648,901 i 26,962,95] 1929-30.. 4,255 1,077,988 4,072,771 5,865,708 1,792,937 30,025,464 1930-31.. 4,494 1,128,884 4,230,372 6,024.277 1,793,905 31,405 217 1931-32.. 4,510 I 1,066,603 4,149,364 ! 5,837,744 1,688,380 32,203,007 Group 3. Group 3 includes all other industries. Number. £ £ £ £ £ 1928-29.. 52,641 9,847,307 j 16,411,232 | 34,999,815 18,588,583 21,310,935 1929-30.. 54,884 10,341,728 16,850,01 I 36,513,650 19,663,636 22,105 737 1930-31.. 52,382 9,578,372 15,322,322 33,366,655 18,044,333 21,643,979 1931-32.. 46,056 7,673,961 12,636,47(1 .17,343,612 14,707,136 20,546,861 Percentage of each Group to Total. 1928-29. 1 •• 29-42 32-93 I 65-97 55-92 37-59 I 22-39 2 .. 5-28 6-62 6-28 5-86 5-09 43-35 3 .. 65-30 60-45 27-75 38-22 57-32 34-26 Totals 100-00 100-00 100-00 100-00 100-00 100-00

H.—44

Percentage of each Group to Total —continued.

Analysis of the data for the various industries discloses the following principal differences for the year 1931-32 and 1930-31 :— Persons employed. Increases. —Fruit-preserving and jam-making, 89 ; paper-bag and box making, 18 ; paint and varnish works, 12 ; fish curing and preserving, 22 ; concentrated foods and preserves, 23. Decreases. —Sawmilling, sash and door factories, 1,799 ; coachbuilding, 1,264 ; brick and tile, &c., 383 ; concrete block and fibrous plaster, 297 ; engineering, 764 ; furniture and cabinet making, 599 ; printing and publishing and bookbinding, 582 ; clothing, 535 ; agricultural and dairying machinery, 345 ; sausage-casings, 185 ; woodware and turnery, 251 ; ship and boat building, 210 ; biscuit and confectionery, 193 ; butter, cheese, and condensed milk, 193 ; boot and shoe, 181 ; tinned-plate and sheet-metal working, 219. Salaries and Wages paid. Increases. —Ham and bacon curing, £5,604 ; fish curing and preserving, £4,385. Decreases. —Meat-preserving, £69,918 ; butter and cheese and condensed milk, £84,217 ; biscuit and confectionery, £52,280 ; sawmilling, sash and door making, £548,399 ; woodware and turnery, £68,599 ; brick, tile, and pottery works, £111,201; concrete block and fibrous plaster, £71,579; tinned plate and sheet metal, £67,497 ; engineering, £212,136 ; printing, publishing, and bookbinding, £231,950; agricultural and dairying machinery, £81,376; coachbuilding and motor-engineering, £307,160; furniture and cabinet making, £165,727 ; clothing, £131,377. Added Value. Increases.-—Meat freezing and preserving, £194,298 ; soap and candle making, £7,130 ; paper-bag and box making, £3,805. Decreases.—Ham and bacon curing, £58,738; butter, cheese, and condensed milk, £117,773; biscuit and confectionery, £124,268 ; brewing and malting, £108,022 ; aerated-water and cordial manufacturing, £87,581 ; sawmilling, sash and door making, £1,091,185 ; woodware and turnery, £146,794 ; lime-crushing and cement, £218,945 ; brick, tile, and pottery, £303,806 ; concrete block and fibrous plaster, £149,831 ; tinned plate and sheet metal, £138,619 ; iron and brass founding and boilermaking, £104,223 ; engineering, £367,134 ; printing, publishing, and bookbinding, £547,684 ; agricultural and dairying machinery, £153,755 ; coachbuilding and motor engineering, £489,971 ; ship and boat building, £98,327 ; furniture and cabinet making, £231,981 ; chemical fertilizer, £113,861 ; clothing manufacture, £169,525. TIMBER. The production of the main varieties of timber in the Dominion for the past nine years (ending 31st March) is given in the following table.—

15

1929-30. 1 .. 28-63 32-21 64-23 53-89 35-82 j 21-44 2 .. 5-13 6-40 6-96 6-38 5-36 45-25 3 .. 66-24 61-39 28-81 39-73 58-82 33-31 Totals 100-00 100-00 100-00 100-00 100-00 i 100-00 1930-31. 1 .. 27-00 31-44 59-65 50-27 | 35-50 20-61 2 .. 5-77 7-23 8-73 7-61 5-83 47-00 3 .. 67-23 61-33 31-62 42-12 58-67 32-39 Totals 100-00 100-00 100-00 100-00 100-00 100-00 1931-32. 1 .. 26-39 30-87 60-36 51-07 35-63 19-96 2 .. 6-57 8-44 9-80 8-61 6-63 48-86 3 .. 67-04 60-69 29-84 40-32 57-74 31-18 Totals 100-00 100-00 j 100-00 100-00 100-00 100-00

Yearended Total. Kauri. Rimu. White-pine. Matai. Totara. Others, .ilet March, Sup. ft. Sup. ft. Sup. ft. Sup. ft. Sup. ft. Sup. ft. Sup. ft. 1924 .. 317,069,216 19,743,196 181,093,581 56,699.443 24,326,148 18,904,361 16,302,487 1925 .. ! 344,094,874 22,891,535 195,572,705 65,572,439 23,947,707 18,509,551 17,600,937 1926 ..1353,224,196 22,765,877 195,451,758 75,634,869 26,141,027 14,109,576 19,121,089 1927 ..305,675,258 ls.ITI.HSI 170,498,282 65,490,059 19,380,469 14,179,462 17,652,005 1928 .. 269,783,000 15,874,000 156,314,000 53,736,000 15,207,000 15,728,000 ; 17,924,000 1929 .. 270,214,420 10,742,967 ! 156,239,992 56,790,306 15,752,744 8,610,639 22.077,772 1930 .. i 282,405,173 10,471,297 163,293,288 58,505,364 17,972,243 9,046,159 23,11(5,822 1931 .. 229,468,022 8,943,480 124,998,825 49,009,109 13,917,187 9,467,697 23,131,724 1932 .. 154,192,510 6,891,352 71,082,074 43,161,299 7,474,867 5,344,100 20,238,818

H.—44

Included in the table above under other species not specified are Pinus insignis and beech. The production of these species for the past five years is as under:— Pinus insignis. Beech. Sup. ft. Sup. ft. 1928 .. .. .. .. 7,694,957 7,923,069 1929 .. .. .. .. 9,168,412 9,845,606 1930 .. .. .. .. 10,381,585 10,225,255 1931 .. .. .. .. 12,739,925 7,680,913 1932 .. .. .. .. 13,404,700 5,756,868 The above statistics show that the production of timber decreased by approximately 75,250,000 superficial feet during the 1931-32 period, a decline of 32-8 per cent. The number of sawmillers engaged in the production of rough-sawn timber shows a decline of 39, the relative figures being 314 in 1931 and 275 in 1932. Employment figures show a substantial decrease in the number of workers engaged in sawmills, and for comparative purposes the following figures are submitted : 1928-29, 6,264 ; 1929-30, 6,504 ; 1930-31, 5,612 ; 1931-32, 3,858. As indicated by the Department's report last year, the export figures for twelve months ended 31st December, 1932, show a substantial improvement both in quantity and value on exports for the previous year, as shown in more detail as under :— Sup. ft. £ Sup. ft. £ 1931 .. 17,528,453 172,606 1932 .. 27,263,616 253,661 The increase in quantity is 55-8 per cent., and in value 46-9 per cent. The improvement shown is due to increased demand for white-pine in Australia, arising out of heavy exports of butter from the Commonwealth. For the six months ended 30th June, 1933, the exports show a falling-off. The statistics show the following position : — Six months ended— Sup. ft. £ 30th June, 1932 .. .. .. .. 13,423,482 127,536 30th June, 1933 .. .. .. .. 13,050,457 121,268 The following table shows in thousands of superficial feet the quantities of imported timber that directly compete with New Zealand native timber :—

The import figures show a decline of over 5,000,000 ft. a drop of 63-5 per cent, on the 1931 totals. The increased landed cost of timber from Canada and United States of America, due to high rate of bank exchange and the depreciated value of New Zealand currency in purchasing from these countries, has had a material influence in reducing imports. WHEAT. During the 1931-32 season the area sown in wheat in the Dominion was 208,756 acres, and the yield 6,582,698 bushels, an average of 2t-49 bushels per acre. The unsatisfactory yield per acre resulted in a substantial shortage, and, as stated in the Department's previous report, arrangements were made whereby the Wheat Marketing Agency Co., Ltd. undertook the imposition of wheat to meet the shortage. The quantity of wheat imported into New Zealand during the year 1932 was 1,361,387 bushels, valued at £256,606. The quantity of flour imported during the same period was 13,009 tons, valued at £159,189. Together the imports during the year 1932 of wheat and flour represent 1,985,819 bushels of wheat, which is equivalent approximately to two and three-quarters months' requirements for the Dominion. The area sown in wheat for harvesting in 1933 was approximately 291,000 acres and with an exceptionally high yield per acre of approximately 37 bushels the total yield will be in the vicinity of ll,(MK),000 bushels. The estimated surplus was so large over the requirements of the Dominion, and as the price of the world's wheat was abnormally low, it was anticipated that the grower would not receive 2s. per bushel on trucks at country stations this season. To meet the position the Government in January of this year gazetted the Board of Trade (Wheat) Regulations. The Wheat Purchase Board was instituted to deal with the whole of the F.A.Q. milling-wheat from this pear's harvest. The Board is composed of four members representing the wheatgrowers and (our members representing the flour-millers. An independent Chairman was appointed by the Government.

16

1929. 1930. 1931. 1932. (1,000 ft.) (1,000 ft.) (1,000ft.) (1,000 ft.) Cedar .. .. .. .. 1,336 637 52 7 Oregon.. .. .. .. 16,188 12,807 2,950 1,081 Hemlock .. .. .. 4,108 6,142 662 Redwood .. .. .. 11,678 9,345 1,028 291 Butter-box shooks .. .. 3,147 4,691 2,879 1,473 Cheese-crate shooks .. .. 1,373 1,774 732 175 Total .. .. . 37,830 35,396 8,303 3,027

H.-44.

Owing to the substantial surplus of wheat in the Dominion, the Board has to date arranged for the sale for delivery overseas of approximately one million bushels. The Board fixed the prices to be paid by flour-millers for this season's New-Zealand-grown milling-wheat. The prices are on a graduated scale, allowing for increments each month from April to September (inclusive). The following is a statement of prices per bushel paid by llourinillers for wheal grown in the South Island with tin , exception of Marlborough, Nelson, ami Central Otago : —

The above prices are f.o.b. grower's nearest port, sacks extra. The Board decided to make progress payments to the growers, and by this means create a fund with which to buy surplus wheat from growers which the millers were unable to purchase, and also to balance the loss on wheat exported. The amounts per bushel paid to the growers as a first payment under the scheme were as under :— For all wheat grown in the main producing-areas of the South Island :—

The above prices are f.o.b. grower's nearest port, sacks extra. After the transactions in this season's wheat are completed l>y the Board any .surplus available will be divided amongst wheatgrowers in proportion to the quantity of wheat delivered to the Board. THE FISHING INDUSTRY. This industry has experienced a very dillicult year, and is still in the grip of uneconomic conditions. The heavy fall in the price of all meat has resulted in a lessened demand for fish throughout the Dominion. In order to make sales the retail price of fish has been reduced to prices which do not allow the fishermen a fair margin of profit. The prevailing conditions have brought into the industry a number of men, most of whom were inexperienced, whose limited catches have frequently to be sold for what they will bring, in competition with the fish caught by the regular fishermen. The surplus catches have usually been ".\|>ort"(l tci Australia where market conditions have also been subject to the keen competition of certain varieties of fish from South Africa as well as from fish caught in Australian coastal waters. Australian Markets. The old-established fishing firms with their long and practical experience in the export trade continue to place their fish on the Australian markets in prime condition, bul then- have been one or two instances in which firms new to the trade, and whose facilities are not yet quite up to date, have not been quite so fortunate in this respect. The quantities of frozen blue cod, snapper, flounder, and other kinds of fresh fish exported to Australia during 1932 show an increase over the year 1931, but smoked fish, tinned oysters, toheroas. whitebait, crayfish, and blue cod show a falling-off in the aggregate.

3—H. 44.

17

1933. Tuscan. Hunters. Pearl and Velvet. S. d. S. d. S. d. January .. .. .. .. .. 4 7i. 4 9£ 4 11{ February .. .. .. .. .. 4 1\ 4 9J 4 111 Maroh .. . .. .. .. 4 7.', 4 94 4 11| April .. .. .. .. .. 4 S.i I lol 5 04. May .. .. . . .. .. I «>.'. 4 ll| 5 1 1 June .. .. .. .. .. 4 10i 5 o.l 5 1\ •Inly .. . .. .. .. 4 114 5 l| 5 3i August .. .. .. .. .. 5 0" 5 2" 5 4" September (onwards) .. . . .. 5 OJ 5 2£ 5 4£

1933. Tuscan. Hunters. Pearl and Velvet. 8. d. 8. d. 8. d. January .. .. .. .. .. 34* 36 38 February .'. .. .. .. .. 3 4 3 6 3 8 March ".. .. .. .. .. 34 36 38 April .. .. .. .. .. 35 37 39 May .. .. .. . .. 36 38 3 10 June .. .. .. .. .. 3 7 3 9 3 11 July .. .. .. .. .. 38 3 10 40 August .. .. . . . .. 3 8J 3 10£ 4 0| Septembei (onwards) .. .. .. 3 9 311 41 i

H.—44.

Fkozen Okaykish-tails. This is a new industry that has made considerable progress during the year, and shows signs of developing to important dimensions in the near future The principal difficulty encountered is in obtaining 0001-chamber space in the overseas vessels. Fish is not allowed to be carried in the same chambers with meal or other perishable products, for fear of tainting resulting. Musi of the vessels in the Home trade are qoI equipped with chambers small enough to be completely filled with the cased frozen crayfish-tails, so that the ship's provision chambers are often used for this purpose. As these chambers have to be entered frequently during the voyage, the temperature cannot be held so constant as in cold chambers devoted to refrigerated cargo. This trade was started by the enterprise of one or two Dunedin fish-merchants, who met with considerable difficulties and made some losses before the best method of dealing with the fish was ascertained through practical experience. The market is London, and has been supplied for a number of years almost entirely by South Africa. This Department has gone to considerable trouble ami some expense to investigate the market, and obtain all the available information as to best methods of preparing, freezing, and packing the tails, and has through the High Commissioner for New Zealand in London kept shippers aware of the capacity of the market, when to ship and when to hold oil, &c. There has been a steadv increase in quantity of shipments, and the trade has extended from Dunedin, to Bluff, Lvttelton, and Auckland, and exports are expected to be made from Wellington early in 1931. The difficulty in regard to filling a cold chamber in the overseas vessels will, it is thought, then be a thing of the past. EGG-EXPORT INDUSTRY. Elfforts have been made by the Department during the past year, in conjunction with the High Commissioner's office in London and the New Zealand Trade Commissioner in Toronto, to develop the markets for New Zealand eggs in the United Kingdom and in Canada. Eeports upon market prospects have been regularly received, and have been passed on to egg-exporting interests in the Dominion, as also has information concerning names of suitable buyers and brokers overseas who are in a position to handle New Zealand eggs satisfactorily. A full report upon the possibilities of the market in the United Kingdom is awaited from the High Commissioner at the present time, and this will lie made available to those interested as soon as it comes to hand. Exports of eggs to the United Kingdom .show a steady increase during the past three years, and it is anticipated that the trade will show further development in the near future. The figures of export to the United Kingdom are as follows :— Eggs in shell, calendar year — Doz. £ 1930 .. .. .. .. .. .. 24,240 1,344 1931 .. .. .. .. .. .. 111,480 5,646 1932 .. .. .. .. .. .. 160,212 7,574 So far as Canada concerned, the statistics for the past three years show that our export trade in eggs has been nil. The Trade Commissioner at Toronto is of the opinion that Canada may be regarded as a substantial potential customer for New Zealand eggs during the Canadian off season. Exporters in the Dominion have been placed in touch with certain Canadian interests, and an attempt will be made to open up a market during the coming season. It is hoped to demonstrate then that New Zealand can supply quality eggs to the Canadian market, and give such satisfactory service as will ensure permanent seasonal connection in the future. Under the New Zealand-Canada trade treaty shelled eggs are admitted into Canada free of duty during the months of December, January, and February. This is an important concession, as the duties applicable to other countries are British preferential, 2 cents per dozen ; intermediate tariff, 5 cents per dozen ; general tariff, 10 cents per dozen. The British preferential rate applies to New Zealand during the other months of the year. TOBACCO INDUSTRY. This industry continues to flourish in the Nelson District, where a considerably larger area was under tobacco during the \'j:\2 .';:! season. The two old-established tobacco manufacturing concerns in the Dominion drew practically the whole of their requirement of W« Zealand leaf from this district, and purchased a larger quantity than in any previous year. This points to the fact that New-Zealand-grown tobacco is becoming more popular with smokers, and that the demand for the well-known brands is steadily increasing. The position of the plantation companies, which are all located in the Auckland District, continues to be difficult, as no overseas market has been found for leaf tobacco, and their only outlet is confined to two manufacturing companies in Auckland. Those companies air as vet only able to deal with a comparatively small portion of the available leaf. and. moreover, have both experienced difficulties in connection with their organization and finance. At the close of the financial year some of these difficulties were, however, passing, and there were indications that some at least of their troubles would not recur. Their sales of manufactured tobacco in which Auckland-grown leal was blended, and of tobacco made entirely from local leaf are increasing, and the outlook for the future is distinctly brighter.

18

H.— 44.

PASSION-FRUIT INDUSTRY. There is little further to record in connection with this industry for the past year. The overseas exploitation of passion-fruit juice is for the time being confined to sample quantities which arc being tried out in Canada, the United States of America, and Great Britain. One of the difficulties encountered is in finding a cheap and effective bulk container, that will hold the juice on the long journey through the tropics, without loss of its distinctive bouquet. The most effective container so far tried is the one-gallon glass jar, vacuum sealed, but the cost of this container, together with the extra expense involved in the packing of glass jars, does not leave the producer a fair margin of profit. The export of passion-fruit juice from Australia to London has made more headway than from New Zealand, one of the reasons being that glass jars are much cheaper there than in New Zealand, and the industry has been in operation longer. Experimental shipments of the juice in two-gallon lacquered tins, packed four in a crate are being tried, but the result is not yet available. Should this method of packing prove successful, it is stated that many thousands of gallons of juice will be shipped to London in this way next season. It is almost invariably the experience that any new industry meets with discouraging factors to commence with. The passion-fruit juice industry is no exception to this rule, but it can now be definitely stated that there is some inquiry for the juice in London, but the price is not as yet payable, chiefly due to the difficulty in finding an economical and efficient container. Every effort is being made to solve this problem, as in the meantime the London market is being supplied from Australia and other countries. TUNG-OIL INDUSTRY. One company, Empire Wood Oil (N.Z.), Ltd., whose property was situated in the Warkworth district, has gone into liquidation during the year, leaving a total of six companies in the industry at the 31st March, 1933. Since that date two more companies have been promoted to plant tung-oil trees. Owing to the prevailing depression, some of these concerns are finding it difficult to maintain the sale of bonds or debentures in order to finance further planting-up of their estates. One or two companies have adopted as a policy the selling of tung-trees from nursery stocks to farmers within economic transportation distance of the company's plantations. This seems to be a sound method of extending the available supplies of nuts for the companies' crushing - mills if and when the plantations reach the production stage. Farmers can plant small areas of their land, that may not be otherwise occupied, with tung-oil trees, and the time and labour involved in taking care of these small plantations and bringing them to the production stage will not entail any considerable expense to the owners. The resulting crop, if the trees prove to be productive, may provide the owners with a source of revenue additional to that resulting from their usual farming operations. It is noted that a few of the trees on some of these northern plantations that have been planted out three years blossomed and even bore a few nuts this season—which is a reasonable indication that in those particular locations soil and climatic conditions seem to be favourable for the future development of this tree. INDUSTRIAL RABBITS. Angora-rabbit Wool. The production of this commodity in the Dominion is steadily increasing, and the industry shows promise of attaining considerable dimensions in the future. The Department has received a large number of inquiries from persons anxious to take up this branch of rabbit-farming, and the advice tendered to them is to start operations in a small way and gradually increase their stock as they gain practical experience in regard to the best methods of handling and feeding the rabbits. It can be safely said that the farming of these rabbits on a small scale offers a means of increasing the income of small holders, and that a considerable portion of their living may be obtained from this source. Many breeders are now finding that they can grow the whole of the feed required by their stock on their own properties, and that the outlay for bought grains and cereal offals is unnecessary. A small portion of the clip only can be marketed in the Dominion, where it is used for the production of yarns, these being produced on hand-spinning looms. The bulk of the clip is sold to England, where the demand has been fairly constant. The market requirements are changing, for the fine-count wool which has been the ideal aimed at during the recent years has now definitely changed to the coarse-type of wool as produced in France and Belgium. The breeders may have to change over to stock suitable for the production of this class of wool, but as this will necessitate the importation of stud stock at considerable expense, there is some hesitation in the minds of breeders as to the advisability of adopting this course. There is no standard price for Angora wool in the United Kingdom, eaeli linn of spinners fixing the price according to his individual requirements. At the close of the financial year the average prices paid by spinners for the colonial or fine type of wool were approximately as follows : Super grade, 28s. to 295. per pound ; first grade, 245. to 255. ; second grade, 16s. to 20s. ; third grade, ss. to 10s. ■ The continental or coarse type of wool was not worth more than 17s. 6d. per pound for first grade. The demand is, however, now more for wool of short staple which can be clipped at more frequeni intervals, thus reducing the work of grooming the rabbits, which was a considerable burden when long staple wool was in greatest demand.

4—H. 44.

19

H.—44.

Fur Rabbits. Tlio fur trade was one of the first to suffer owing to the fall in world-commodity prices during the last three years, and whilst conditions improved a little during the first quarter of 1933, the local industry is still suffering from the lack of buying-power of the public. In a climate such as ours furs must be regarded as more or less of a luxury, and those who would buy them in ordinary times content themselves with cheaper commodities in times of financial stringency. Those breeders who imported rabbits of the Havana, Bevern, and Rex breeds last year have not so far reaped the reward of their enterprise, but as times improve they will experience a better demand for the fine furs they are now in a position to supply in increasing quantities to furriers. GAS REGULATIONS. The Board of Trade (Gas) Regulations, which are administered by this Department, provide safeguards in respect to heating-value, purity, pressure, price, and measurement. Nineteen gas undertakings in the Dominion come within the scope of the regulations. The work of the Gas Examiners and Inspectors of Meters has been carried out efficiently during the period under review, and the official relations with the gas companies and municipal undertakings have, without exception, continued to remain most satisfactory. COMMERCIAL TRUSTS ACT. A number of complaints were made to the Department during the past year that the provisions of the Commercial Trusts Act, 1910 (as amended by section 12 of the Cost of Living Act, 1915) were being infringed, and in each case these were followed by full investigation by the Department into the nature and circumstances of the alleged breaches. These complaints related principally to alleged refusals to supply certain commodities and to the fixation of prices of commodities covered by the Schedule to the Act. In one instance which was investigated by the Department the facts were sufficient to justify legal action being taken. Briefly this case related to the refusal of certain coal-merchants in Palmerston North to supply coal, except upon relatively disadvantageous terms. The action was heard before the Supreme Court at Palmerston North in November last, and certain penalties were inflicted on the defendants. Combinations of traders may, at the outset, not have a monopoly, and may be carrying on their trades and maintaining prices in a legitimate manner. If, however, the whole of the traders become members of a combine it is quite clear that there may be a tendency, or at least a temptation, for them to consider their own interests exclusively, and for the public to suffer in a corresponding degree. It is this evil that the Commercial Trusts Act is directed against, and the action referred to was brought to enforce the law, and to show that it is the desire of the Government to protect traders from being forced to enter combinations to maintain prices to the detriment of the general public. CHATTELS TRANSFER ACT, 1924. Section 57 of the Chattels Transfer Act, 1924, provides for the protection of bailors of such chattels as are referred to in the Seventh Schedule without the necessity for registration of the agreements concerned, and, furthermore, it is provided by the Act that Orders in Council may be issued to extend the Seventh Schedule by the addition of further classes of chattels recognized as being the subject of " customary hire-purchase agreements." The Department has charge of the administration of this section of the Act, and whenever applications are received for the extension of the schedule thorough investigation and inquiry are made by the district officers in each of the four chief centres of the Dominion as to the customary trade practices and as to the desirability or otherwise of adding such articles to the schedule. During the past year applications were made in respect of the following classes of chattels : Duplicating-machines, accounting and book-keeping machines, adding-machines, calculating-machines, addressograph machines; filing-cabinets; steel shelving and cupboards; freezer storage cabinets, sheet-metal-working machinery ; orchardists' packing-shed machinery. Careful inquiries were made in regard to each of these applications, but in no instance was the evidence obtained considered sufficient to warrant the addition of the particular chattels or class of chattels to the schedule. TRADING-COUPONS. An Act was passed in 1931 prohibiting the redemption of trading-coupons otherwise than for cash. The matter of trading-coupons has been before the Department for a number of years, a matter which has aroused considerable criticism on the part of retailers whose particular line of goods was being offered in exchange for a given number of coupons, in this manner making serious inroads in their trading profits. The undesirability of the issue of trading-coupons by a third party has been recognized for many years, and, in consequence, the Trading Stamps Prohibition and Discount Stamps Issue Act was passed in 1908. The present Act goes much further in restricting the redemption of coupons, and it is now an offence for any trading-coupon to be redeemed otherwise than for money.

20

H.—44.

The Department obtained judgment in proceedings under the Act taken against a Wellington company for coupons redeemed otherwise than in conformity with the Act. The appearance of the Act on the statute-book has been effective in putting an end to the growing competition that was developing between traders, not so much in the goods they sold, as in the value of the prizes exchanged for coupons issued when the goods were sold. Quite a number of coupon schemes before the public offer cash prizes for competitions in connection with the sale of proprietary and other commodities. The entry into these competitions is made conditional on the forwarding of a label or part of a wrapper, &c, which under these circumstances becomes a trading-coupon. Compliance with the law is assumed by the offer of cash prizes. The point arises whether the right to enter a competition in exchange for these coupons is " redemption " within the meaning of the Act. The Department proposes shortly to take a test case and obtain the ruling of the Court on this particular point of law. COINAGE COMMITTEE. In May last a Committee was set up by the Government for the purpose of investigating the question of the establishment of a separate and distinctive coinage for the Dominion, this being rendered necessary by the shortage of silver coin which had developed as a result of extensive exportation of such coin from the Dominion by private interests desirous of reaping benefit from the exchange position. The Committee consisted of representatives of the Chambers of Commerce, the Associated Banks, retailers, the Numismatic Society, the Treasury, the Post and Telegraph Department, the Controller and Auditor-General, and this Department. The order of reference of the Committee was as follows : — (a) Whether the opportunity should be taken to alter the denomination of the coins with ( a view to placing our token coinage and money of account on a decimal basis, and, if so, what coins should be struck. (6) Whether it would be economic to have any or all of the coins manufactured in New Zealand. (c) The design of the new coins. The Committee completed its deliberations and submitted its report to the Government at the end of June. Briefly, its conclusions in connection with the three points at issue were as follows : — {a) That apart from any other considerations, having regard to the cost to the community of a change-over under existing conditions, the Committee does not recommend the adoption of a system of decimal coinage in present circumstances. (6) That the Committee recommends the acceptance of the offer made by the Royal Mint in connection with the recoinage of the present issue of silver coin. (c) That the Committee recommends that the question of allowing local firms to tender for additional supplies of coin required subsequent to the recoinage of the existing coin be considered if and when additional coins are required in the future. (d) That, in view of the urgency of the matter, the approval of the designs be left largely in the hands of the Government's representatives in London acting in conjunction with such New Zealand artists or other expert advisers as may be available there, but that before approval is finally given the cabled description of the designs, when received, be submitted for the opinion of leading representatives of the New Zealand Numismatic Society and the New Zealand Association of Artists' Societies. (e) That the question of the recoinage of the bronze coinage now in circulation in the Dominion not being, in the Committee's opinion, one of urgency, the Committee recommends that artists in New Zealand be given an opportunity to prepare the proposed designs when the work is undertaken. WORLD ECONOMIC CONFERENCE. The World Economic Conference opened at London on the 12th June, 1933, and closed on the 27th July, 1933. It is yet too soon to appraise the results of that Conference, but it is hoped that the better understanding of the difficulties of individual nations which must inevitably occur from the frank discussions of the representatives of those nations will pave the way for such agreements and mutual concessions as will enable the world to march steadily onwards towards that era of better times that we are now beginning to feel lies not far ahead. The Department was called upon to prepare a considerable amount of information for the use of the New Zealand delegates who attended the Conference, and this necessitated a good deal of statistical research and investigation, and the carrying-out of a number of inquiries concerning the industries of this Dominion. INDUSTRIAL AND COMMERCIAL BULLETINS. During the past year the Department has continued with the issue of bulletins containing information on industrial and commercial subjects. As usual, the bulletins have been sent to the press, Chambers of Commerce, Manufacturers' Associations, prominent business executives, overseas trade representatives, and other persons and firms to whom they are likely to be of interest and value. The issues made during the period under review were as follow : — Bulletins Nos. 20, 21, 22, and 23 : Summary of the Finance, Trade, and Industries of New Zealand for the Quarter and Year ended 30th June, 1932 ; 30th September, 1932 ; 31st December, 1932 ; and 31st March, 1933, respectively.

21

H.— 44.

MISCELLANEOUS ACTIVITIES. It is impossible in this report to cover all the activities of the Department during the past year. The inquiries received from day to day are so numerous and of so wide a range that it is possible to mention in detail in the foregoing pages only a comparatively few which happen to fall more or less under broad general Leadings. Furthermore, many commercial and industrial inquiries carried out by the Department are of a confidential nature, and for that reason cannot be referred to in reports for publication. The activities of the Department in connection with the marketing of our produce both locally and overseas have largely increased in recent years. In particular the work of the Department in serving as a medium for the opening-up of new markets and the development of exist ing ones overseas has shown rapid extension, and the value of the Department to the business community in this direction has been materially enhanced as a result. The following list of a few of the inquiries of lesser importance made by the Department during the past year may provide some indication of the extensive variety of subjects with which the officers of the Department are required to deal from day to day. The list covers only two aspects of the Department's work —namely, price investigations and market research : Prices of bread in various towns ; meat; fish : milk ; butter ; coal ; knitting-wool : woollen goods; oat products; flour; bran and pollard; binder-twine; hides and leather; agricultural lime ; ammunition ; cement ; &c. Markets for fish (blue cod, soles, flounders, &c.) ; canned whitebait; crayfish-tails ; eels ; swordfish ; rabbits ; sausage-casings ; tallow ; leather ; onions ; potatoes ; apples; mineral waters; passion-fruit juice ; binder-twine ; fancy shells; chamois-skins: Samoan cocoa-beans, &c. CONCLUSION. It is desired to record the Department's appreciation of the assistance given by the various Trade Commissioners, Consuls, and Vice-Consuls of overseas countries resident in New Zealand and, in particular, to acknowledge its indebtedness to His Majesty's Trade Commissioner, the Canadian Trade Commissioner, and the Trade Commissioner for the United States. It is to be regretted that the office of the latter has recently been closed, and it is hoped that when financial and economic conditions permit the Government of the United States will see fit in the interests of trade development between that country and New Zealand to reopen the office. Acknowledgment must also be made of the assistance and co-operation given by other Government Departments during the year, particularly by the Customs Department, the Department of Scientific and Industrial Research, and the Department of Agriculture. In conclusion, it is pleasing to be able to strike a note of optimism as regards the future, for there is in existence at the present time, not only in New Zealand, but in overseas countries as well, such an atmosphere of confidence as has not been in evidence at any period during the past three years. Commencing with the suspension of the gold standard by Great Brtiain towards the end of September, 1931, signs of improvement have been observed from time to time, and forecasts have been made that such signs portrayed the beginning of a recovery from the long period of depression. Unfortunately, the hopeful forecasts then made were not realized and further price recessions followed. The present improvement, however, has now been steadily maintained for some months, and present indications give no cause to think that there should be further relapse to the conditions from which we have recently been emerging. It must be expected thai there will be fluctuations, but the general tone of trade at the present time points to the maintenance of the upward movement in prices that has already occurred and to a general betterment of economic conditions. It is felt that the transition stage has now definitely arrived between the drab days of 1930-33 and the immediate years ahead. The next stage promises substantial progress towards international understanding, and the probable settlement of major questions bearing on the world economic situation. In this progress natural advantages, backed by a confidence, courage, and resourcefulness inherited from the race from which we are. descended, will enable this Dominion to be in the forefront of the nations of the world.

22

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APPENDIX.

MANUFACTURING INDUSTRIES. Fruit-preserving and Jam-making. Official statistics year ended 31st March :— 1930. 1931. 1932. Establishments (number) .... 7 10 11 Employees (number) .. .. 298 352 441 Wages paid £54,983 £63,128 £59,074 Value of output £300,424 £330,522 £305,808 Value added by manufacture .. £132,204 £135,762 £121,228 Imports, calendar years : — Jams and preserves (including preserved £ £ £ g' n g er ) 26,772 10,411 7,681 Fruits, bottled and preserved in syrup— Apricots 22,042 16,384 13,576 Peaches •• •• •• 58,330 43,535 26,974 Pears 728 1,330 650 Fruit-pulp n.e.i. .. .. 5,362 1,907 1,836 Total .. .. £113,234 £73,567 £50,717 The figures above show substantial decline in output as forecast in the last annual report A Southern company reports an increased export trade due in some measure to increase in bank exchange Reports from Northern companies state that turnover in jam will keep at 1932 level for the current year. Canned pears show a decline in quantity. Tomatoes, peas, beans, and spaghetti which are not included in these statistics, show some improvement in demand. Lime and Cement. Official statistics year ended 31st March :— 1930. 1931. 1932 Establishments (number) .... 31 40 43 Employees (number) .. .. 928 912 794 Wages paid £222,831 £205,414 £164 665 Value of output .. .. .. £928,200 £878,732 £601,849 Value added by manufacture .. £737,968 £693,766 £474,821 Imports, calendar years : —- Cement, building (cwt.) .. .. 34,834 7,508 4 968 Value •• •• •■ •• £8,142 £2,936 £2 267 With building industry extremely dull, the demand for cement shows a marked decline. One company reports works closed during year for fourteen weeks. Engineering. Official statistics year ended 31st March :— 1930. 1931. 1932. Establishments (number) .. .. 205 200 198 Employees (number) .. .. 3,890 3,455 3 691 Wages paid £809,884 £725,690 £513*554 Value of output .. .. .. £1,982,720 £1,692,214 £1,161,974 Value added by manufacture .. £1,263,454 £1,115,380 £748,246 The majority of companies reporting state that trade is stagnant, competition for business offering is keen, and prices accordingly unpayable. Some report declines of 25 per cent., others 35 per cent to 50 per cent. One company reports a slight improvement during the last few months. It is interesting to note that this industry is one of the very few that showed an increase in number of employees. Sauce, Pickle, and Vinegar Making. Official statistics, year ended 31st March :— 1930. 1931. 1932. Establishments (number) .... 23 22 20 Employees (number) .. . . 262 234 224 Wages paid .. .. .. £48,652 £45,270 £39 386 Value of output .. .. .. £218,832 £203,741 £187,334 Value added by manufacture .. £124,222 £116,610 £112,255 Imports, calendar years : — Pickles (gallons) .. .. .. 2,746 1,244 405 Val "e £1,870 £747 £295 Sauce and chutney (gallons) .. 15,327 10,046 5 964 Value •■ ■■ •• ■• £14,889 £6*504 Vinegar (gallons) .. .. .. 21,670 16,225 20 411 Value £7,643 £4,186 £5,364 Competition from overseas is not a serious factor in this industry, but local competition is keener than previous years. Staffs have been maintained with short time. One company reports a slight increase in number of employees.

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Soap and Candle Making. Official statistics, year ended 31st March :— 1930. 1931. 1932. Establishments (number) .... 18 22 21 Employees (number) .. . . 452 438 422 Wages paid .. .. .. £97,209 £96,919 £86,611 Value of output .. .. .. £508,020 £478,896 £444,270 Value added by manufacture .. £250,908 £251,990 £259,120 All companies reporting advise that competition has reduced prices to unpayable levels. Outputs in quantity have in some cases increased but sales values are reduced. Sales of toilet soaps show an improvement. One company has commenced the manufacture of toilet soap and reports encouraging results. One company reports an increase in the quantity of candles sold. Coach and Motor-body Building and Cycle-works. Official statistics year ended 31st March :— 1930. 1931. 1932. Establishments (number) .. .. 1,060 1,098 1,049 Employees (number) .. .. 7,033 6,354 5^090 Wages paid .. .. .. £1,413,393 £1,202,942 £895,782 Value of output .. .. ..£3,120,460 £2,652,608 £2,016,683 Value added by manufacture .. £2,153,494 £1,788,841 £1,298,870 Conditions generally in this industry arc bad. The decline in sales is expressed by various units in the industry, in percentages from 25 per cent, to 75 per cent. Biscuit and Confectionery Makim/. Official statistics, year ended 31st March :— 1930. 1931. 1932. Establishments (number) .... 59 60 57 Employees (number) .. .. 2,719 2,716 2,523 Wages paid .. .. .. £358,422 £367,944 £315,664 Value of output .. .. .. £1,676,440 £1,596,660 £1,327,013 Value added by manufacture .. £857,026 £842,829 £718,561 Conditions during the current year are described as fair. Reduction in sales has necessitated discharge of workers. One company reports slight improvement in sales over past three months, increasing by 8 per cent., with re-employment of staff. Furniture and Cabinet Making. Official statistics, year ended 31st March :— 1930. 1931. 1932. Establishments (number) .. .. 334 335 308 Employees (number) .. .. 2,774 2,378 1,779 Wages paid .. .. .. £541,235 £451,376 £285 649 Value of output .. .. .. £1,381,995 £1,156,512 £726,795 Value added by manufacture .. £783,322 £649,708 £417,727 This industry is extremely quiet, with no sign of improvement at present. Manufacturers report decline in sales from 25 per cent, to 50 per cent. Competition is keen. Unemployed tradesmen competing in " back-yard " workshops add to present difficult position. Ham and Bacon Factories. Official statistics, year ended 31st March : — 1930. 1931. 1932. Establishments (number) .... 45 41 39 Employees (number) .. .. 396 380 384 Wages paid .. .. .. £94,270 £92,692 £87,088 Value of output .. .. .. £1,156,621 £949,597 £761,121 Value added by manufacture .. £319,178 £325,536 £266,798 Cost of materials used .. .. £837,443 £624,061 £494,323 The number employed in this industry shows a slight increase. The ratio of value " added by manufacture " to sales is practically the same as 1931. Bricks, Pipes, Tiles, and Pottery Making. Official statistics, year ended 31st March : — 1930. 1931. 1932. Establishments (number) .. .. 66 61 50 Employees (number) .. .. 1,156 946 563 Wages paid .. .. .. £248,429 £213,895 £102,694 Value of output .. .. .. £645,209 £564,489 £253,356 Value added by manufacture .. £614,091 £537,775 £233,969 The lack of building activity is reflected in the above figures. Some brickyards report a decline in sales as great as 73 per cent, compared with last year. Sanitary-ware manufactured by a South Island company is securing a fair proportion of trade offering, due to increased landed cost of imported ware, but overseas manufacturers are now meeting the position by reducing invoice values.

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Flax-milling. Official statistics, year ended 31st March : — 1930. 1931. 1932. Establishments (number) .... 57 22 17 Employees (number) .. .. 903 177 135 Wages paid .. .. .. £147,830 £26,223 £13,198 \ ;ihie of output .. .. .. £319,369 £47,722 £33,878 Value added by manufacture .. £234,760 £39,417 £24,399 Rope and Twine Making. Official Statistics, year ended 31st March :— 1930. 1931. 1932. Establishments (number) .... 5 6 6 Employees (number) .. .. 219 225 205 Wages paid .. .. .. £41,858 £38,296 £35,304 Value of output .. .. .. £191,396 £160,401 £121,732 Value added by manufacture .. £80,820 £75,841 £64,831 The flax-milling industry continues to be in a very parlous state. The small export trade now secured as indicated below is due to the assistance of the Unemployment Board. The increased quantity exported represents 60 per cent, advance on the 1931 figures. The value exported shows an increase of 23 per cent, on the previous year. The company referred to in the last annual report of the Department has secured a building - site at Foxton. Plant has been ordered from England, and the company hopes to commence manufacture early next year. Export statistics : — Year. Tons. £ 1927 19,600 535,526 1928 15,683 394,450 1929 .. .. .. .. .. 14,720 379,942 1930 .. .. .. .. .. 9,493 221,923 1931 .. .. .. .. .. 2,398 38,407 1932 ~ 3,850 47,312 The rope and twine industry is dependent to some extent on the shipping trade, and in consequence has suffered through falling-off of coastal trade. The demand for binder-twine increased during the current year by 33 per cent., and the industry was able to maintain the same number of employees during this period. Clothing. Official statistics, year ended 31st March : — 1930. 1931. 1932. Establishments (number) .. . . 237 244 244 Employees (number) .. .. 7,852 7,690 7 155 Wages paid .. .. .. £970,017 * £916,045 £784'668 Value of output .. .. .. £2,811,013 £2,597,928 £2,153,467 Value added by manufacture .. £1,419,696 £1,278,801 £1,109,276 Imports, calendar years :— Apparel and ready-made clothing (including fur clothing) .. £2.091,894 £1,161,962 £846,030 The majority of manufacturers advise substantial falling-off in turnover, ranging from 25 per cent, to 50 per cent. Competition for smaller amount of business is extremely keen, resulting in lower profits. One company in the South Island reports conditions good, sales increased by appreciable amount, additional employees engaged, and overtime worked. The trade in men's outer clothing is reported by companies in the North Island to have been fairly well maintained and in some cases increased. Prices have been reduced, as demand generally is for low-priced goods. The sales in women's wear have shown little variation from the previous year. Agricultural and Dairy Machinery and Implement Making. Official statistics, year ended 31st March :— 1930. 1931. 1932. Establishments (number) .... 31 32 32 Employees (number) .. .. 963 850 505 Wages paid .. .. .. £211,383 £179,137 £97,761 Value of output .. .. .. £844,880 £574,721 £280,751 Value added by manufacture .. £420,889 £301,722 £147,967 Competition from overseas manufacturers has been a material factor in the decrease of sales experienced by a number of manufacturers. The import figures of 1932 show substantial increases in many lines of agricultural and dairying machinery. Manufacturers reporting state that sales have declined from 20 per cent, to 50 per cent, when compared with 1932 figures. One company reports net sales increase of 10 per cent, for 1932 over the figures for 1931, but prospects for the next six months are not encouraging, and until farm products harden in price business will remain quiet It is stated that many farmers are now usinu; implements which under normal conditions would be scrapped.

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H.—44.

Woollen-manufacturing. Official statistics, year ended 31st March :— 1930. 1931. 1932. Establishments (number) .... 12 10 10 Employees (number) .. .. 2,478 2,237 2 216 Wages paid .. .. .. £364,549 £328,826 £300,'399 Value of output £1,085,279 £896,677 £802,105 Value added by manufacture .. £612,793 £571,926 £541,044 Although the value of output declined by £94,572, value added by manufacture, which is a better indication of the position, declined by £30,882. Manufacturers have experienced increased competition from overseas as shown by the import figures of piece-goods of various materials. Imports from the United Kingdom in cotton piece-goods increased by £194,572. In silk and artificial silk the increase from the same source was £40 710 From Japan the increase was £60,544. The United Kingdom also obtained a greater share in the market for woollen piece-goods, the relative import figures being: 1931, £361,886; 1932, £401,505—an increase of £39,619. This increase was gained at a loss to European countries.

Printing and Publishing. Official statistics, year ended 31st March :— 1930. 1931. 1932. Establishments (number) .. .. 350 358 355 Employees (number) .. .. 8,255 8,192 7,610 Wages paid .. .. .. £1,859,182 £1,805,620 £1,573,670 Value of output .. .. .. £4,772,811 £4,509,786 £3,772,323 Value added by manufacture .. £3,569,680 £3,339,487 £2,791,803 The conditions of this industry are unsatisfactory when compared with previous years. Sales have declined from 10 per cent, to 50 per cent., due to orders for only essential business being placed. Business offering has been secured at very fine margins. It is reported that trade during the last three months shows signs of improvement. 'Brush and Broom Making. Official statistics, year ended 31st March :— 1930. 1931. 1932. Establishments (number) .... 14 15 15 Employees (number) .. .. 239 223 209 Wages paid £41,733 £42,415 £31,291 Value of output .. .. .. £135,047 £116,107 £102,219 Value added by manufacture .. £73,212 £66,479 £57,168 Imports, calendar years : — Brushes, brushware, and brooms .. £78,003 £38,623 £25,409 The competition from overseas in this industry shows a substantial decline of 34 per cent, for the past twelve months. A company in the South Island reports that trade during the first six months of the present year was quiet. The latter part of the year has shown substantial improvement, and full time has been woiked. The demand at the present time is for cheaper classes of goods. Competition is keen especially from the smaller factories. One company has obtained New Zealand rights for the manufacture of " Hairlok " made of teased hair impregnated with rubber, moulded in various shapes, and then vulcanized. It is used in the manufacture of furniture, motor-cars, bedding, &c.

Approximate Cost of Paper —Preparation, not Riven; printing (1,940 c-opics), £86.

Price <M.]

By Authority : G. H. Loney, Government Printer, Wellington.—l 933

26

Piece-goods. 1929. 1930. 1931, 19 3 2- ! « £ £ £ Artificial and pure silk .. .. 1,211,335 1,020,019 610,191 677 419 Woollen 742,649 622,256 401,513 425,175 Cotton and linen .. .. .. 1,841,997 1,734,653 1,073,157 1,246,024 Totals •• •■ •• 3,795,981 3,376,928 2,084,861 2,348,618