trade which is shown by the table represents in reality twice the actual value of goods passing from one state to another, the same merchandise figuring in one place as exports, and in another as imports. The value of goods passing through a state on their way to foreign countries, as well as of goods imported from abroad and re-exported, is, of course, also included in the figures. The actual movement is therefore less than half of the values given below:

The trade of New Zealand during the years 1891 and 1903 will be found below:

:

Total, British and Foreign 6,503,849 12,788,675 9,566,397 15,010,378 16,070,246 27,799,053

In spite of fluctuations in individual years, trade with the United Kingdom still comprises nearly three-fifths of the total, but the greatest increase in imports has taken place in the trade with foreign countries, which practically doubled itself during the period from 1891 to 1903. Amongst the chief countries contributing to this advance were the United States, the imports from which rose from £362,000 in 1891 to £1,441,000 in 1903, and Germany, from which the imports increased from £66,000 in 1891 to £274,000 in 1903.

Under the "Preferential and Reciprocal Trade Act of 1903," certain goods imported into New Zealand, not being the produce or manufacture of some part of the British dominions, were made subject to duty or to increased rate of duty. It is further provided by this Act that from and after the 31st March, 1904, no duty shall be leviable on tea grown in any part of the British dominions, except on tea in packets not exceeding 1 lb. in weight. Of the £12,788,675 worth of imports in 1903, the value of goods subject to the preferential tariff was £1,752.

The following table shows the volume and percentage of imports into New Zealand at intervals since 1861, distinguishing the trade with United Kingdom, British possessions, and foreign countries:

As the table shows, the proportion of trade with the United Kingdom increased up to 1891, since when there has been a decline, while the imports from British possessions fell away considerably during the period. The trade with foreign countries is now proportionately about three times as large as in 1881. Of the imports from British possessions,

nearly two-thirds are furnished by the Commonwealth, the other principal contributing possessions being Fiji, Hong Kong, and India and Ceylon. The bulk of the imports from Fiji consists of sugar, and from Ceylon, tea.

A similar statement regarding the exports for the same years is given below:

The proportion of exports from New Zealand to the United Kingdom has more than doubled since 1861, while to foreign countries it increased steadily up to 1881, but thereafter declined. With British possessions the proportion has fallen off greatly since the early years, partly in consequence of the increase in trade with the United Kingdom, and also on account of the increase in the quantity of goods shipped direct to London instead of by way of Sydney and Melbourne, as was the case formerly. The Commonwealth receives about 80 per cent. of the exports to British possessions, while a fair amount of trade is carried on with Hong Kong, and, since the war, with the South African colonies.

The United States of America is New Zealand's chief customer amongst foreign countries, the most important of the commodities despatched thereto in 1903 being kauri gum, valued at £362,890, and phormium, £125,425. The so-called kauri gum is in reality a resin, being the solidified turpentine of the kauri, and occurs in a fossil condition in large quantities in the northern portion of the North Island. The great bulk is used in the manufacture of oil varnishes, but the transparent, or semi-transparent, varieties are also employed as a

substitute for amber in the manufacture of mouthpieces for pipes and cigar-holders. From the "phormium tenax," or New Zealand hemp, a superior quality of fibre is obtained.

Details of the trade of New Zealand with the principal foreign countries are given below. The first table relates to imports.

The exports from New Zealand to foreign countries for similar periods were as shown below.

With the exception of the United States trade, to which reference has already been made, the only other exports of importance were to the South Sea Islands, the chief articles of New Zealand produce exported thereto being meats, butter, and coal. The trade with France consisted principally of wool, the export being valued at £13,000, while kauri gum, to the value of £14,670 was exported to Germany.

value of the chief 1903 ::

The following table shows the destination and articles of export from New Zealand for the year