RECOVERY IN AUSTRALIA

Press, Volume LXIX, Issue 20989, 18 October 1933, Page 8

RECOVERY IN AUSTRALIA

Encouraging Signs IMPROVING TRADE BALANCE (Fsoit oca own eonwrspoKDEWT.) SYDNEY, October 12. It may not be wise to be overenthusiastic, but there are more definite signs than ever now that Australia has left behind the worst of the depression. Since the presentation of the tax-reducing Federal budget the stock exchanges in all the cities have been busier than at any time for years past. Yesterda-" the volume of business on the Sydney Stock Exchange eclipsed all previous records, and was a reflection of what was taking place in the other states. The buying orders were so numerous that the call in the morning was the longest in the history of the exchange. All classes of trading and industrial issues figured in the business, and the boards were heavily taxed to record the various changes that took place. Prices, with a few minor exceptions, moved on the up-grade, thus adding to the striking gains that have been recorded since the presentation of the Federal and state budgets. The recovery in wool prices also influenced the investment market.

Following on the presentation of the so-called restoration budget comes the news that the Federal accounts for the first quarter of the current financial year show a surplus of ,£2,838.000. This amount is nearly £220,000 more than the figures for the corresponding quarter of the previous financial year. Receipts for the quarter ended September 30 last were £1,471,000 in excess of the estimate for that period, but that does not take into consideration the taxation remissions, totalling £5,440,000. for which allowance has been made in this year's budget. Customs tax, sales tax, and income tax receipts for the quarter were well above the estimate. It is an excellent sign, too, that Government expenditure during the quarter was £1.661,000 below the estimate, indicating that the Government is doing its part in keeping the finances within bounds.' Trade Figures. Further good news is provided in the latest trade figures issued by the Federal Government Statistician. He shows that for the first two months of the new financial year, Australia's commodity balance on overseas trade was £3,35)0,000 better than for the corresponding period last year. At the end of August, 1032. the overseas trade balance showed a deficit of £3.006,000, compared with a favourable balance oT £390,000 at the j end of August this year. Exports of specie and bullion were considerably heavier in is year, and bring the total favourable balance to £1,506,000. The latest official figures show the ' rapidly reviving state of the building trade in Sydney. The value of new buildings erected in Sydney in Seotember was four limes that for September last year. Many big citv firms are now making provision for an expansion of trade, and it is not surprising that there should be a general feeling of greater confidence.