State of Trade.

In referring to the trade of the Colony for the past year, your Committee cannot refrain from expressing their disappointment that the hopes indulged in at the last Annual Meeting have not been fulfilled. You are, however, aware that the past two years have been exceptionally trying all over the world, and, in common with our neighbours, we have been unable to escape suffering more or less; unfortunately the depression here has been aggravated by the comparative failure of two consecutive harvests. But notwithstanding these drawbacks failures have been comparatively few, and for the most part involving only small amounts. The importing and distributing trade of Canterbury has for some time past been conducted with extreme caution, and there is every reason to believe that it is now on a fairly sound footing. From the exporter's standpoint there are signs of brighter times, which lead to the hope that we have reached the turning point. Our frozen meat industry, although it has not realised all that was at first anticipated for it, is steadily developing, and has already benefited the farmers to a very considerable extent. Reference to the tables appended hereto, shows that the exports of wool from the colony increase in volume, and as invention after invention is adopted by our farmers to increase the quantity, while decreasing the cost of their farm and dairy products, we may very fairly hope that an upward movement has commenced, and that ere another year is over we shall have emerged from the state of stagnation and depression which at presents surrounds us.

Customs Tariff.

The proposed alteration in the Customs Tariff by the Colonial Treasurer was strongly disapproved of by this Chamber, and at a meeting held in June last a series of resolutions were proposed, which were in effect identical to those ultimately adopted by the House of Representatives. The general feeling amongst members of this Chamber is undoubtedly in favour of the Customs Tariff being as simple as possible, and that if it is deemed wise to afford incidental assistance to any industry by a revenue duty, the rate in no case should exceed 15 per cent.

Wharfage Rates.

Representations made by the Committee to the Harbor Board have resulted in a reduction to 1s. per ton of the rate on cement, pig iron, salt and soda crystals, while the outward rate of 2s. per ton on merchandise that had already been charged with 2s. inwards, was at the same time discontinued.

Exhibitions.

In pursuance of the resolution adopted at a general meeting of members, your Committee is assisting in the collection of products for the Colonial and Indian Exhibition to be held in London next year, and it is hoped that this Exhibition will be the means of advancing the interests of New Zealand in England and elsewhere. Two members of your Committee have also acted upon the local Committee for the Exhibition which was successfully opened at Wellington on the 1st instant.

Telephone.

Your Committee held a correspondence with the Colonial Treasurer some months ago with respect to a suggested reduction in the charge, in view of the considerable profit shown as resulting from the service, and your Committee are pleased to note that a reduction has since been made.

West Coast Railway.

The desire on the part of the people of Canterbury to see this work taken in hand, has been greatly intensified during the past six months. In January last it was deemed wise to amalgamate with this scheme the projected line of railway between Nelson and the West Coast, and a provisional contract having been obtained from the Government for the whole work, three delegates were dispatched by the Concessionaires to London for the purpose of disposing of the contract. The result of this was, that a provisional arrangement was made by the delegates with a firm of Contractors, and an outline of the arrangement telegraphed to the Government and the guarantors. At a special meeting of this Chamber resolutions were adopted generally approving of the construction of the railway by a Syndicate upon the conditions then published, and providing that the annual guarantee should not exceed £97,000. It however afterwards became apparent when the conditions of the proposed contract were fully disclosed, that they were of such an objectionable nature as to preclude their acceptance either by the districts interested or by the colony. The Public Works Statement, published yesterday, includes a proposal for placing on the Estimates a sum of £150,000 for the commencement of a line to connect Springfield with Nelson, by way of the West Coast. The rate of progress implied by this proposal is, however, not likely to be satisfactory to this or the other districts interested; and your Committee earnestly hope that it may yet be possible, before the end of the session, to devise measures that will secure the completion, within a reasonable time, of this long projected work.

Steamship Subsidies.

The proposed renewal by the Government of the San Francisco Mail Service, was discussed at a meeting of the Chamber held on the 28th ult., and a resolution was carried affirming the desirability of maintaining it. page 13 The opinion however was very generally expressed, that efforts should be made to obtain a faster service if a subsidy for as much as £30,000 is to be continued. It will be observed that the Government have now invited tenders for an eighteen-day service.

A new service has been initiated to the South Sea Islands, and it is earnestly hoped that it will realise the results claimed for it. The reports published since the return of the "Janet Nicoll" are, however, scarcely so encouraging as could have been desired. It appears that the exports and imports of the Friendly Islands for 1883 were £95,000 and £105,000 respectively. The trade returns for Samoa are stated to be £71,147 for exports, and £69,928 for imports, which are slightly in excess of the figures quoted by the London Chamber of Commerce. The exports and imports of the "Society Group" are given by the delegates as £177,372 and £151,031 respectively; and for the "Harvey Group," £28,000 exports and £24,000 imports. It will thus be seen that the volume of the trade of the groups of islands within the scope of the new service is comparatively small. It also appears that the bulk of the imports consists of manufactures that cannot be produced in New Zealand. There is a moderate market for the food products of this Colony, but our past experience has shown that New Zealand flour is not in favour. Your Committee hope however that full advantage will be taken of the service to open up such business as may be practicable.

A movement has been made in the direction of recommending a subsidy for a direct line of steamers to trade between New Zealand and Queensland, and your Committee consider that such a service would shortly open up an excellent market for most of our farm and dairy products, as Queensland imports largely of breadstuffs, potatoes, dairy produce, &c. It is pleasing to notice that the Union Steamship Company have, as an experiment, decided to place the s.s. "Taupo" at the disposal of shippers for the Fort of Brisbane; but it can be well understood that it will take some little time to firmly establish a profitable trade, and while this is being effected, it is feared that sufficient cargo will not be forthcoming to warrant the Company repeating the experiment. In view of the large benefits to be derived from a direct trade with so important a Colony as Queensland, it is to be hoped the Legislature will see the wisdom of granting a small subsidy, as it cannot be reasonably expected that a private company will be prepared to bear the loss incidental to the initiation of this trade. As showing the importance of Queensland, it may be mentioned that in 1883 her imports wore £6,233,351, and her exports £5,276,608, and when it is remembered that her climate is unsuitable for producing wheat, oats, potatoes, butter, cheese, hams, bacon, &c., it will be at once seen that that Colony is capable of absorbing a large quantity of many of our surplus food stuffs, while in exchange she can send us sugar and many other tropical products.

Direct Service.

Tour Committee is pleased to notice that the service is now firmly established, and has undoubtedly proved of great benefit to the Colony. The mails carried by the New Zealand Shipping Company's Royal Mail Steamers, alternating with the San Francisco Service, have been delivered in London and in this Colony, with commendable regularity and invariably within the contract dates. The speed which the lines maintain both home- page 14 ward and outward will bear favourable comparison with any other long-distance service in the world. It is satisfactory to notice that the direct steamers of both lines are bringing out each voyage large numbers of second saloon passengers, a class of emigrants that invariably prove to be excellent colonists.

Railway Affairs.

In response to continued agitation the Government decided to make a reduction in the rates on farm produce. This alteration came into force on the 1st May last, and it amounts on the average to about half the advance made on the 8th March, 1881, which excited so much dissatisfaction. The long promised reduction of 6d. per ton in the rate for the handling and haulage of merchandise from ships to sheds in port has also been made. Continued correspondence with the Minister for Public Works has however so far failed to induce the Government to reduce the exceptionally high charge for haulage on merchandise between Lyttelton and Christchurch. At an interview which the Committee had with the Colonial Treasurer in March last, he stated that the Government could not see its way clear to reduce this rate, but your Committee think the matter should not be allowed to drop.

The question of transferring the management of the New Zealand Railways to a non-political Board was exhaustively debated at a Conference of New Zealand Chambers held at Wellington on 18th September last. The facts elicited at the discussion impressed the minds of some of the delegates with the idea that the adoption of this proposal would not be without some practical difficulties, mainly in the nature of the relations that should subsist between the Board and the Government; and the result was that a resolution was adopted recommending as an experiment the constitution of Boards of Advice in the different railway centres. A Bill has however been prepared by the Government for the constitution for each Island of a Board of Control, such as has been in contemplation for some years past. The official conduct of railway affairs in this district has in general continued fairly satisfactory to the public.

Conference of Chambers.

A meeting of the delegates of the various New Zealand Chambers was held at Wellington on the 18th September last, and a report of the proceedings has been printed and furnished to members of the Chamber. Another Conference was arranged to be held in Wellington this month, mainly to consider the question of the proposed radical alterations in the Customs Tariff, but owing to the practical abandonment by the Government of the contemplated changes, the meeting was not considered necessary.

Chamber Accommodation.

The new building in Cathedral Square, in which the Chamber has arranged to lease rooms, is now approaching completion. No suitable opportunity has presented itself for dealing in any way with the land belonging to the Chamber in Cashel street and Bedford Row.

Bills of Lading.

The Committee has had under consideration the objectionable clauses on Bills of Lading that so frequently result in hardship to shippers and consignees of goods from England. The co-operation of the London, Melbourne, Sydney, and Adelaide Chambers of Commerce, has been invited, with a view to promoting agitation in England, in order that steps might be taken to establish conditions more equitable to the shipper.

Membership.

During the past year twelve new Members have been elected, while the Chamber has lost two Members by resignation, three left the Colony, and three by death. With respect to the latter, the Committee records with special regret, the loss of Mr. John Inglis, who had for so many years taken a prominent part in the affairs of this Chamber.

President and Vice-President.

The President, Mr. John Cooke, being absent on a visit to England, and the Vice-President having resigned, owing to legislative duties occupying so much of his time, your Committee requested Mr. Stead to act in their absence, and to preside at the Annual Meeting.