U.S. TRADE

Press, Volume LXVI, Issue 20011, 20 August 1930, Page 12

U.S. TRADE

THE HEAVY SHRINKAGE. Monday's cablegrams recorded that the United States foreign trade had dropped in July to the lowest figure for four years. News by the last New York mail provides some information on various aspects of the country's trade. The great New York banking and financial institutions report the great 'sliriukagc in the trade of tho United States during the third quarter of 1929 and the half-year of 1930. Trouble appears to have begun with the sensational collapse of prices on the New lork Stock Exchange and the curb market in October. Although some recovery was made in the value of securities, yet in March there was a set-back, and again in June. Hut the collapse of the share markets was not the only of industrial depression. Prices of commodities continued to decline in the .United States in common with markets the world over. In the United States itself, with few exceptions, company net profits this year have obstinately tended downwards. The Guaranty Trust Company's latest report stated: "Business has definitely settled down to the expectations of a dull summer," but expected that there would be a revival of trade in tho autumn months. Conditions favourable to such an improvement included cheaper money, fairly well maintained wage-scales, and a generally moderate level of commercial and industrial inventories. At tho same time tho decline in commodity prices continued downwards. The effect of these conditions on employment was shown by the National City Bank of New York, which recently gavo the following official Federation of Labour figures for the month of April, showing percentage of union members unemployed:—

Decreased production was registered for the first half of this year, compared with the corresponding periods of last year in particular trades: Steel ingots, 13 per cent.; steel mill, C per cent.; building. construction, 25 per cent.; motor vehicles, 29 per cent., and it was stated that "all manufacturers (of motor vehicles) continuo their policy of keeping production in close step with sales, so that stocks of new cars are low, and the industry is in a position to respond quickly to any improvement in retail demand.'' Striking tables are furnished showing the net profits earned by groups of companies in the first quarter of the current year, after ] full revision, and they nearly all indicate declines on those for the first quarter of 1929. Three hundred companies are analysed and show a decrease of 21 per cent, for the quarter, compared with the January-March period of 1929, aggregate net profits declining from approximately 438,000,OQO dollars to 344,000,000 dollars. In the corresponding quarter of-1928 the same companies had total profits of 327,000,000 dollars, so that for 1930 they are still 5 per cent, ahead of two years ago. Of the 300 companies dealt with, 27 were not paying dividends. The •remaining 273 companies were dividendpaying. Of the 300 grouped companies, quotation of the net profits of a few of the group may be found interesting, the figures being given in. dollars, omitting final 'ooo's.

Increase* will be noted in profits derived from amusements and restaurants, food produets and printing and publishing. Motor vehicles show relatively substantial declines, so do Iron and steel and petroleum profits. •Excludes General Motors profits.

STORAGE OF FRUIT.

CFBXSS ISSOCIITIOV TXUOBAU.) " ' NELSON, August 19. In the course of an address on the Research work' of the Cawtliron Institute in connexion with' the cool storage of fruit, Mr L. Tiller, a member of the staff, said: "Little is known at present concerning the detailed effects of the various types of fertiliser on the storage quality of fruit, but there is considerable evidence to show that the keeping quality of fruit eai. .be improved by the use of a well-balanced orchard manorial programme designed to meet the needs of the treeb to which it is being applied. If the growth of the trees is forced either by over-manuring or by employing- an ill-balanced mixture, there is danger of the production Of soft, large-sized apples which will have 1 only a short storage life."

AUSTRALIAN MEAT INDUSTRY.

A CRITICAL POSITION. (DSITED raids ASSOCIATION —BT ELECT £.lO TJBUSOBAPH—COPTBIOHT.) SYDNEY, August 19. The chairman of the Australian Conference of Meat Exporters, Mr William AngHse. etated that because of thfe falling markets, high costs, embargoes, and tariffs, the Australian meat export industry was confronted with the most critical position. Every avenue' must be explored and every effort made immediately tb get down costs and secure modification or the tariff.

taranaki oil fields.

(HUS3S ASSOCIATIOH TSIJSGRAM.) GISBORNE, August 19. . The report of Taranaki (New Zealand) Oil Fields Ltd.. for the we®k ended Augpst 16th. is as glows:-.. Waitangi No. 1 wel .-Site for rig prepared and earth work on road completed.

MOUNT LYELL NEW ISSUE.

TJ» directors of the Mount Lyell .^ in |?J —a Railway Co.. Ltd., announce . that the ftte 0* 267.839 shari# of £1 each, at par, Is the proportion of one for " mf® fcf. bees heavily over-subscrihed. The final ' |yn«" aw not yet available

1930. 1929. 192S. Per cent. Per cent. Per rent All trados ..20 12 16 Building .. 40 29 32 Metals .. 19 5 13 Printing 0 4 A " Other trades .. 12 —

1929, 1980. 'Amusements 13,328 19,978 Restaurants - . ■ 1,700 37,754 1,930 Motor vehicles* ■ • • 10,293 General motors 60,318 44,969 Auto accessories .. Coal Chemicals • ■ • • 22,854 1,781 12,482 1,066 44,129 35,124 Electrical equipment 23,841 21,875 28.375 60,728 Food products Iron «nd iteel • • 27,940 78,841 Non-ferrons mining 23,257 12,435 Petroleum 26,582 31,875 Sea) estate. .. Printing and publishing' 2,709 8,921 2,867 9,43b Railway equipment 4,607 5,421