COMMERCIAL

Press, Volume LXXII, Issue 21976, 28 December 1936, Page 11

COMMERCIAL

♦ BRITISH TRADE REVIVAL IMPROVED INDUSTRIAL SITUATION LESS UNEMPLOYMENT The trade revival in the United Kingdom continues to make progress, notes the November Review of Lloyd’s Bank, Ltd. The number of employed workers on October 26 was 11,103,000, which is a new high record, and reports from most of the chief industrial centres remain encouraging. Outside the special areas, unemployment is probably now as low as it ever can be and there is a growing shortage of skilled labour. Even in the special areas unemployment, though still very serious, has diminished during the last few years. The iron and steel and engineering trades' arc everywhere very active. Rearmament work is now m full swing and is being superimposed upon the new demands that have arisen from the trade revival. Building is still active, but during September there was a drop in the total value of building plans passed, and it is possible that the industry is approaching its peak. The autumn motor show proved very successful, with orders in excess of last year. The textile, clothing, boot and shoe, and oilier consumer*' goods industries are now making progress, and consumption as indicated by retail sales continues to run ahead of last year. More general indicators, such as raw material imports, railway goods traffic returns, electric power consumption, and the inland coal demand, also confirm the continuance of the trade revival. The question lias been raised whether the trade revival and rise in •prices in England is not proceeding too fast, and it is even suggested that some increase in interest rates might soon be salutary. It may be granted that prices on the stock exchange have risen to a high level, and it may be that new capital issues are beginning to need more careful scrutiny. Yet while production costs are now beginning to rise, there is no sign that they are yet becoming 100 high. Again, so long as unemployment remains severe in the special areas, any argument for applying a brake to the trade revival cannot easily be justified. For this reason alone, all suggestions of dearer money at home appear to be premature. There may be a case for vigilance at the present moment, to prevent unhealthy speculative positions from developipg, but there is as yet no case for any positive action. The most that can be said is that outside the special areas the argument for initiating public works for the sole object of relieving unemployment no longer possesses the force that it did a few years ago, or which it may possess in a few years’ time. Public works to-day should be undertaken mainly with regard to the needs of the special areas. WOOL FOR JAPAN REPLENISHING LOW STOCKS Though Japan has this season bought wool of various classes in countries other than Australia, figures show that the cessation of imports from the Commonwealth has resulted in a decrease in her stocks of raw material. At the close of July her reported stocks were 10,000,0001b less than at the end of June, and a further considerable reduction has since been experienced. Approximately half the wool available for sale in Australia this season has now been sold. In New South Wales the larger part of the merino top-making types suitable for Japan have already found buyers. The greatest advantage in a resumption of Japanese purchasing in Australia lies in the more assured demand which more-widely distributed competition provides. It is a tribute to the strong selling position wool occupies that its sale has not been more affected by occurrences overseas. The absence of marked variation in prices, which had risen 20 per cent, to 25 per cent, in two months, offers evidence that consumers are not nervous, and do not find wool an overcostly raw material in terms of the depreciated currencies which now' prevail. MUTTON AND LAMB THE AUSTRALIAN TRADE The first annual report of the Australian Meal Board states that as the Australian mutton and lamb trade has been always almost entirely confined to the United Kingdom, the closing of European markets has not affected this section as it has the beef exporter. Further, it is pointed out, the restriction on foreign mutton and lamb imports to the United Kingdom arising out of the Ottawa Agreements have resulted in a marked expansion of tho industry.. Exports to all destinations increased from 73,786 tons in 1931-32 to 87.587 tons in 1934-35. About 98 per cent, of those shipments went to Great Britain. The future expansion of the Australian mutton and lamb trade, the board considers, depends on two factors:— 1. Increased demand in the United Kingdom, about the' possibility of which opinions differ. 2. Decline in New Zealand production. It is acknowledged that there is a divergence of opinion on the latter point. Those"who support the theory point to the fact that exports which in 1931-32 totalled 195.350 tons dropped to 177,750 in 1933-34, and only recovered to 181,650 in 1934-35. The report concludes the section dealing with mutton and lamb by saying thpt “while Australian sheep raisefs have demonstrated their ability to produce mutton and lamb of a quality comparable with the highest class New Zealand product, they have still to undertake seriously the task of raising the average level of their product, In the opinion of experts this can be done by concentrating on the raising of the type of crossbred which produces the particular type of carcase favoured by the United Kingdom consumer." LONDON PRODUCE MARKET LONDON, December 26. Thursday’s closing prices were:— Cotton—Spot, 6.94 d per lb; January, 6.70 d. Rubber—Para, 13d; plantation, smoked 10 l-16d per lb. Jute—January-February, £l9 10s a ton. Copra—Januar -February, South Sea, £2l a ton; smoked, £2l; plantation, Rabau). £2l 17s &d. Linseed Oil—£3o a ton. Turpentine—3ls 9d per cwt.