Indigenous Exports.

Kauri Timber.—Until the advent of the New Zealand Company, and indeed for many years afterwards, the trade of the Colony was exceedingly small. The principal imports were tomahawks, red blankets, and page 9 other articles used in barter with the Natives, and Jamaica rum, the favourite beverage of the whalers. It is not, however, clear that the "popular spirit" was exclusively used as a corrective to blubber. Tradition hints that it occasionally became the lubricant, if not the actual circulating medium, in land transactions with the unsuspecting savage.

One of the first exports was timber—kauri spars taken to England for the use of the navy. The trade, which still flickers faintly, was initiated by special expeditions sent out from the Admiralty long before the settlers had got a proper foothold in the country.

The trade in spars was the precursor of the general timber trade of the Colony. Notwithstanding the immense quantities of this material imported from all parts of the world, and the large home consumption, the exports are of considerable magnitude, and yearly increasing. The trade has been much greater during the last four years than ever it was before, the highest year of all being 1835, when the exports reached £157,380, mostly kauri from Auckland, together with £7806 worth of timber manufactures. The imports of timber in 1885 were £56,381, and of woodware and other timber manufactures, such as wheelwright work, £10,905.

Phormium—The next indigenous export is phormium tenax—the native flax, or as it is now more appropriately called "hemp." Some of you will remember the flax mania which occurred some fifteen years ago, when so many expected to make their fortunes and so few made them. The export of phormium has been in existence since the first traders touched the shores of New Zealand. The first tomahawk or pannikin of rum was probably given in exchange for a few bales of the fibre, with a square mile or two of good country thrown in.

The industry was up till 1866 almost entirely in the hands of the Maoris. In consequence of Native disturbances the export trade had almost died out between 1860 page 10 and 1866; machinery was then applied to the preparation of the fibre, and the market being propitious the exports went up rapidly. They amounted to £132,578 in 1870, and £143,799 in 1873; but since they have fluctuated between £7,874 and £41,955.

Whale Oil.—The feeble commerce of the pre-settlement days was considerably augmented by the whale fishing, but as the settlers increased in numbers the whales disappeared, and the trade got gradually less. A remnant of the industry, however, remains. In 1885 the exports from the industry amounted to £10,593.

Kauri Gum.—Kauri Gum is another indigenous export that figures largely in the earlier returns, and which is still of considerable importance, being the third or fourth largest item in our exports. The highest point reached was in 1884, when we exported 6393 tons valued at £342,151. Gum digging in Auckland, like rabbitting in Otago, is what may be termed a "vagabond industry," to be taken up when everything else fails, or when times are hard and other work scarce.

Fungus.—Another forest product of unique character which has appeared of late years in the exports is a peculiar kind of fungus that grows on the trees in the North Island, and which is exported exclusively to China. It is used by the Celestials both for food and medicine, as well as for dyeing silks. The fungus is chiefly found on the West Coast, so it has acquired the name of "Taranaki wool." Although probably a vagabond industry it is of considerable importance to the districts in which it is carried on. The exports in 1885 were £10,922, and in 1882 they ran up to £18,939