TRADE RECOVERY

Auckland Star, Volume LXV, Issue 144, 20 June 1934, Page 11

TRADE RECOVERY

CHEERY AUSTRALIA. INVESTMENT STABILITY. AUCKLANDER'S IMPRESSIONS. The optimistic outlook in Australia was stressed, by Mr. V. B. McTnnes, of Auckland, this morning, on his return from a -business trip across the Tasman. There was, he said, a spirit of optimism abroad everywhere he went, due in the main to the greatly improved position of the woolgrower, and the consequent release of a considerable amount of money in the country. It is not difficult to understand this cheery spirit when one considers that Australia sent £46,000,000 worth of wool overseas during the eight months ended. February last, as against £26,000,000 in the corresponding eight months'of the previous year.. Travelling between Australia and New Zealand during the past few years, Mr. Mclnnes said, it appeared to him that business men, and in fact the whole community in the Commonwealth, accepted the slump far more philosophically than the people of New Zealand. Even in the darkest days the general feeling appeared to be that the next toss of the penny would show the bright side. In New Zealand there was a tendency to take the depression very seriously, and 1 even, to-day, when the outlook had cleared considerably, there were people who refused to adjust themselves to the improved conditions, and failed to realise that they should greet the upward trend with confident cheerfulness. Altogether the past year _in Australia had been a better trading period than has been experienced for some time. Marked improvement was shown in manufacturing, the building trade, bank clearances and stock exchange transactions. Factory employment had .recovered to 82 per cent of the previous peak period, and to a slightly lesser degree there had been a similar improvement in other fields of commercial activity.

With regard to investments, lie stressed that the same difficult position existed in Australia as in New Zealand. Securities generally looked upon a? sound wert, 3n most eases too highly priced. It was, however, recognised that investors must cxpcct still lower returns from industrial stocks, as interest rates have still a downward tendency. There was a great deal of capital seeking safe and ' lucrative employment, and this, together with the state of the security m&rket, assured the success of, the Commonwealth-. Government loan of £12,000,000. Investors were making a more careful study of the investment field' prior to purchase, a factor which would do much to ensure future stability. The wonderful impression which Miss Jean Batten had made in Australia was commented upon by Mr. Mcliines. Her quiet dignity and lack of fuss had endeared her to Australians, he said. She had proved an apt speaker iii replying to the many welcomes which had been showered on her. and was an excellent advertisement for the L'oiuinion. ' Xew Zealanders should be proud of her, and we will, have to go some to outdo her Australian welcome," he concluded.