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The Pamphlet Collection of Sir Robert Stout: Volume 82

III.—Obstacles to New Zealand Trade

III.—Obstacles to New Zealand Trade.

The obstacles to the extension of trade between New Zealand and the Islands are as follow :—
(1).The Debased Coin in Circulation.—The difficulty of finding an equitable medium of exchange is by this means, and the absence of banking establishments, rendered very great; and the only profitable method of carrying on trade is to barter goods for native products.
(2).The Small Consumption or Manufacture Island Products in New Zealand.—Of a total of £340,000 worth of produce exported from the Islands in 1884, only about,£17,000 worth (representing the value of fruits, coffee, and wool) were articles that are consumed or manufactured in New Zealand. The copra exported was valued at £209,000; the cotton-seed at £73,000—these going chiefly to Europe direct, though some was sent via New Zealand. Copra has been used in manufacture, in small quantities, by the Union Soap and Candle Company of Auckland; but there is in the meantime no prospect of a local consumpt springing up sufficient to balance our exports to the Islands, while the loss to the copra by handling, combined with the double freights, must very soon extinguish the transhipping trade, unless the Harbour Board offer special facilities for its continuance.
(3).High Price and Unsuitability of some New Zealand Products.—Our flour, biscuits, soap, and timber are everywhere spoken against—the flour, biscuits, and timber as being unsuited for the Islands, and the soap as being of inferior quality; while frequent complaints were made of too high prices being charged for all these articles. Our millers, if they wish to secure this market, must kiln-dry their flour, so as to make it lighter for baking and better for keeping. Californian biscuits and Sydney soap are preferred, on the grounds of excellence and price combined; but I consider, with regard to these items, it is custom and prejudice that rule. There appears to be reason in the objections to kauri timber, though even in respect to it I have heard contradictory statements—some people who had used it alleging that they found it most durable. The explanation of these conflicting opinions must, I think, be sought in the quality of the timber supplied from Auckland, and this in page 58 some cases is very bad—so much so that Mr. Baker, Premier of Tonga, said that when he wanted good kauri he sent to Sydney for it. The fact would seem to be that lots of sap kauri are sent down with the idea that "it is good enough for the Islands," whereas the contrary rule should be applied, as the best timber is required to withstand the more trying climate and the more voracious ants. In the meantime our timber has got such a bad reputation, that it may take years to convince traders in the South Sea Islands that good heart of kauri timber is superior in durability for building purposes to any other.
(4).The, High Rate of Freights, Shipping and Customs Dues, &c.—New Zealand freight rates compare most unfavourably with those of San Francisco; regular communication should also be more frequent, and certain shipping charges and Customs duties should be abated, in order to allow New Zealand ports to compete on equal terms with Sydney.
(5).The Want of Settled Government at Samoa and Cook Islands.—This Objection applies equally to the commerce of other nations as to that of New Zealand, and need not be enlarged upon.
(6).Character and Remutneration of Employés.—New Zealand trade has suffered in the past from the character of the commercial men sent to do business—the principle acted upon being that "anybody was good enough for the Islands." The Germans pursue a totally different plan; the manager of the leading Company has a salary of £3,000 a year, and many scions of German nobility (including a nephew of Prince Bismarck) have been at various times sent to the Islands as clerks and overseers. There is not an English employé in the Islands who has even £1,000 a year; and though the old reproach of the worthlessness of our commercial representatives has been removed, they are deficient in ability, social status, and influence as compared with the Germans.