THE EXCHANGE.

Press, Volume LXIX, Issue 20916, 25 July 1933, Page 13

THE EXCHANGE.

AUSTRALIAN POLICY. federal k eduction moot In view of the revival of rumours ii small inilial rocluction in the present rate of New Zealand exchange 0 n London is contemplated, officially on London is contemplated, it is interesting to note the trend of discussion on the subject in Australia. The Sydney "Morning Herald" states that a kite is being flown from Canberra to ascertain how a proposal ■ to force down the exchange rate, that is, to appreciate our currency, would be received. The Country party will have something to say on the matter. ]t is strange that the subject should be raised at. this moment, when, in place of appreciating its currency, the United States lias wilfully brought about a wholesale depreciation, and the British Government is doing its utmost to prevent the British currency appreciating. In both countries it is recognised that a depreciated currency is necessary to help in moving depression away. It increases the domestic price of commodities of export, it improves the competitive power of the producers for export, it lessens the burden of debtors whose debts are domestic as distinct from foreign debts, that is. debts raised abroad. France and Italy, it is true, are fighting against depreciation. The depreciation in their case took place years ago. and to an extent to which neither Great Britain, the United States, nor Australia has ever dreamed of France cut four-fifths off the prewar gold value of her currency. Italy and Belgium did much the same. In flying the kite it is explained that the Commonwealth Government has to pay £2,000,000 on account of exchange, and if this were saved it could be devoted to make concessions to industry, especially primary industry. The Minister who provided the ammunition knows very little of what exchange has done for the primary producer, or he Is shutting his eyes to facts. Australian Governments paid on account of exchange £7,500,000 last year. For 11 months of last year producers received from exchange on account of produce exported, including newly-won I gold', but excluding the notes reserve gold'exported, a sum of £22,000,000. If all Governments of Australia devoted all that they saved from exchange to confessions to primary producers the primary producers would receive in the full year only one-third of what they received from exchange on produce exported during 11 months of last year. If. the receipts of primary producers had been lessened' last year by £14,500,000, what would have been the state of the finances of Governments to-day, and what would be the state of Government finances at the end of the present year, let alone the state of the people of the country? It is the increased employment which the greater purchasing power obtained by the primary producers, as the result of the exchange benefits, that has made an improvement in business generally, and has increased the field of taxation. The primary producers will naturally ask who is inspiring the Government and with what object. AUSTRALIAN TRADE. SUSTAINED IMPROVEMENT. "Well-sustained improvement.'' in' industry and trade in Melbourne and most suburban districts is reported by the National Bank of Australasia in its June summary of business conditions. In a few unfavourably situated sections, it is stated, there has been some recession. In country districts there is marked variation, partly caused by weather conditions, but on the whole some improvement is reported, and the outlook is regarded as encouraging. The outstanding feature of the suburban reports is the great improvement noted in real estate. Many suburbs have no vacant houses, and a shortage of small and ground floor factories is noted. The number of vacant shops is much reduced. Where houses are vacant they are mostly old-fashioned and inconvenient, or in bad order. A new demand has arisen for vacant land suitable for building, and the activities of speculative builders and homemakers are reflected in larger sales of bricks, timber, hardware, and other building material, and in increased employment of tradesmen. Both selling values and rents are well below pre-depression levels, but an upwara movement in rental charges is in progress. Retail trade turnovers for June were definitely higher than for June last year, an increased volume of sales making up for lower prices. Growing competition from large chain organisations, and from city stores trading for cash, has led to much price-cutting, while the shrinkage of profit margins in the grocery trade has led to the formation of large buying "groups," formed for the purpose ol obtaining the advantages of large scale purchasing. The furnishing trade, though not active, is improving its figures, mainly through sales of small items and rePlacements. Textile manufacturers continue well employed, though the bulk of the unfilled orders has been overtaken, and some sections are working for stock, while others have eased some 15 per cent, recently. Profit margins are finely cut, but the tariff protection of the local market has ensured full working for some time Past. A marked improvement in range and quality has accompanied the increase in output. A revival in shopkeepers' orders is expected in the textile trade later in the year. At Present public purchasers are being stimulated by extensively advertised bargain sales. the herning swede. Result of nelson experiment. ASSOCIATION TELEGRAM.) . ' NELSON, July 24. * A few weeks ago a Nelson Press Awociation message reported that remarkable results were being obtained VJ the Murchison district with the t «rning variety of swede turnip rejjmmended by Dr. D. L. Freeman, of Department of Agriculture, Nelson. in view of the local conditions and «ie ravages of club root in crops previjJJMy grown. This announcement has tsubjected to a good deal of 2? r «ive comment in certain quarters. ■J 0 * season is now sufficiently adanced to give definite data. to21 r James, winner of the herd ewinjj competition, and recognised as 3 Brjt-class farmer, sowed' six acres of JjjWing swede turnips and then two *2** °t the same paddock with a mixSJ* of Herning and a variety preused. The strike was peril*; till a few weeks after hoesiL , Not a Herning swede was ajwted, but the other variety withered ®o}Pletely and died. Mr James and averaged 100 square jS Of the crop, the weight being equal to 90 tons an acre. - *llß brother, Mr Thomas James, had , Jr* cows feeding eight hours daily two and half acres and the swedes ; 31 days.