8.—6

IV

Although practically 50 per cent, of the regular Treasury staff has joined the colours, the abnormal increase of work and responsibility thrown upon the Department in administering and controlling such large sums has been efficiently carried out. The staff is at present slightly below, its pre-war strength, but it has been found possible by close attention to work and the simplification of methods in the Treasury to carry out the additional duties without increase of staff. I feel it is their due that I should publicly acknowledge their services. IMPORT VALUES. The values of imports (calculated at invoice value plus 10 per cent., which is the value entered for ad valorem duties) as compared with the tonnage landed will give some idea of the increase in the value of merchandise as compared with the period before the outbreak of war. The proportion of value obtained from Great Britain and British ports, United States, and other. foreign countries is—

Trading with the Enemy. On the 26th September, 1916, an Order in Council was issued prohibiting the importation of goods of enemy origin from any destination. Prior to that time there was nothing to prevent the importation of enemy goods held in stock in British possessions prior to the war, and the result was that German and Austrian goods continued to find their way into New Zealand from stocks in Great Britain and Australia. Statements are frequently made that trading with the enemy still continues, and there is little doubt that this impression is due to the fact just stated. Many of the allegations as to enemy trade have been investigated, but in not a single case has it been shown that New Zealand importers have been knowingly receiving goods exported from Germany after the commencement of the war. Under arrangement made by the Imperial Government certificates of origin and interest are now necessary for goods exported from Switzerland, Holland, Denmark, Norway, and Sweden. These certificates are issued by a British Consular Officer, and are to the effect that it has been proved to his satisfaction that the goods have not been produced or manufactured in enemy territory, and that no person who is an enemy or who is associated with persons of enemy nationality has any interest in the goods. Stocks on Hand and Orders expected. Many merchants have been interviewed to ascertain as nearly as possible the stocks of goods on hand and the orders expected during the present financial year. It is found that in most lines stocks are heavy as compared with this time last year, in many cases quite 50 per cent, greater, but 35 per cent, is a fair average. This is the case with soft-goods, china, fancy goods, tobacco, and cigars. The retail shops are also overstocked, and consequently the wholesale stocks will, be slow to clear. Almost every- wholesale merchant visited stated that orders to go forward, and already sent forward, would be very much less than during the past year. Certain classes of goods can be procured from Great Britain only under the certificate of the Honourable Minister of Munitions. These include many chemical salts much used in the industries and manufactures, pig iron, railway material, steel billets, steel angles, channels, joists, and other sectional material and structural work. Saddlery, hardware, tinplates, and other goods are obtained with difficulty. As against the expected shortage of importations there is the fact that the stocks in the bonded warehouses are heavy. An all-round drop of revenue as compared with 1916-17 must be expected.

Year. British Ports. United S Value. Tons. Value. Other Foreign m . Itates. Countries; iota,s - Tons. Value. Tons. Value. Tons. — _r_ £ £ 125,755 1,923,346 52,157 21,856,096 1,538,755 138,741 1,401,449 58,457 2.1,728,834 1,370,057 230,341 1,535,897 63,697 26,339,283 1,299,944 1914 1915 1916 £ £ 17,649,784 1,360,843 2,282,966 17,727,137 1,172,859 2,600,248 20,833,461 1,005,906 3,969,925