IMPERIAL TRADE.

Press, Volume LVI, Issue 17016, 13 December 1920, Page 6

IMPERIAL TRADE.

A NOTICEABLE SHRINKAGE. CONTRIBUTING CAUSES. fRv Cable Press Association—ICV>prri?H.)1CV>prri?H.) ami X.Z. Cnbl, Association.) (Received December IL'th, 5.5 p-m-l LONDON, December IU. Mr F. G. Kelhnvay, Parliamentary Secretary to the Minister of Munitions, in the course of an interview "u 1 ' 11 Australian Press Association, sail perial trade was none too notablv with India and Australia. Die former was suffering from tlho reduce exportation of ono hundred mi io.i pounds' weight of tea to KU There was a good demand foi- Bntt.. cioods in Canada .and 3sew jZenlan d. Both these countries were ablo to bn> iind both were able to paj, but both tffiJSf A»». fco was confident that when commerce wero running smoothlj I'Uflt Britain would Tecover most, if not an. of her lost trade; alfo her u " cl, *P l V d supremacy as to the source of *«PP'rAustralia had been importing £ mudh exceedins the value of Imr e. - ports to Great Britain, consequently there was a pronounced shortage oi liquid funds in the Australian banks m London. , r Inferring to the wool, positio.r, Mr KellaAvav said that a fairly even flow of credit, for Australia had been preserved for the last- few years by the British Government's promptness in paving for tihe produce purehfiscd from the Commonwealth. On the wool appraised in Australia, . payments were made in London within a fortnight or tho appraisement, and the long wa.it which would otherwise have intervened pending tho arrival of tho documents against shipment thereby avoided. Wool was now being released from control, but tho proceeds of the first thret» shipments in transit from Australia- did not become avnilablo at tho banks in London untii the maturity of tho drafts drawn against them. Fiirthermore, tho British Government paid in advanco for wheat and wool exported last July and Aufrnst. Mr Kellnway concludes: From statenienta made by the Commonwealth Treasury officials it appears that tho position cToated by the above-mentioned economic factors "are only temporary. The position will right itself whon tihe present wool clip and coming harvest is realised. The present stoppage of credit, with the consequent heavy restriction on exnort business, is likely to endure until March, unless tflie Commonwealth, takes action in the meantime.