106 WHEAT PRODUCTION IN NEW ZEALAND 
Thus, if the general level fell 10 per cent., exports would 
fall, say, 18 per cent., and imports fall only 7 per cent. 
We see, therefore, that imports into New Zealand were 
increasing in value relative to exports, that is, that it 
required a greater quantity of exports to pay for imports 
than was the case formerly—or otherwise, the purchasing 
power of our exports had decreased. 
But New Zealand was under a further disadvantage ; 
for, being a debtor country, falling prices were unfavour- 
able to her. Since the value of money had risen the 
interest paid represented a greater sum than previously. 
Thus the Colony was doubly hit by the falling prices 
of the eighties, and we are better able to understand why 
the depression experienced here was so great. Of course, 
in a time of rising prices like the present the circum- 
stances are completely changed, and we, as producers, 
experience a double benefit because our interest pay- 
ments are in reality lessened, while exports rise in value 
relatively to imports. 
But despite this general depression it was not until 
the middle ‘‘eighties’’ that wheat production began to 
decline, and even then the decline was comparatively 
slight. The very fact that progress in wheat production 
was retarded is sufficient evidence of the attitude of 
the farmers toward the industry. And just at a time 
when a fate tantamount to bankruptcy was facing our 
Dominion there occurred an event which has rightly 
been called the country’s salvation. In 1882 the experi- 
ment of freezing meat for export to England was 
successful, and the first shipment made. Prior to this, 
sheep were useful only for the wool they would produce. 
Their value was extremely low, and in many cases they 
could be obtained for the trouble of taking them away. 
But by the refrigerating process sheep proved to have 
value beyond that of mere wool and possible manure, 
and the attention of farmers began to be drawn to 
