ECONOMIC CONDITIONS

Ellesmere Guardian, Volume LVI, Issue 80, 22 October 1935, Page 7

ECONOMIC CONDITIONS

FURTHER IMPROVEMENT

NOTED

When concluding his report in the quarterly bulletin issued by the Department of Industries and Commerce, Mr L. J. Sphmitt, secretary to the department, stated: "A review of the data contained in this report indicates a further improvement in domestic conditions, as shown by banking, bankruptcy, building and unemployment figures. The increased returns received last year from 'exports resulted in increased purchasing power, and greater confidence in commercial circles, which has now evidently been manifested in a substantial increase in imports. This has no doubt resulted in increased activity within the Dominion. "Exports from this country of most of the principal commodities show decreases in both quantities and values, causing a decrease in total exports for the past quarter as compared with the same period in the previous year. The fall in wool values over the last season and the continuance of low price realisations for dairy produce are the principal causes for these decreases. Although the London price of cheese remains depressed, it is pleasing to note, however, that during the past quarter there has been a distinct firming tendency with both wool and butter. It is evident that considerable quantities of last season's wool have been held in stock in New Zealand, while it is reported that the carry-over of New Zealand wool in London is heavy. Any rise in prices- would, therefore, be of considerable benefit, to growers who are holding for future sale. Poor crops of apples and pears over the season were the cause of the fall in quantities and value of fresh fruit exported.

"A significant feature of the external trade figures is the severe drop in exports to Continental countries, both for the past quarter and for the year ended June 30, 1935. The whole question of the freedom of our marketing overseas, and especially in European countries, is of great moment, in view of the increasing restrictions arising out of agrarian protection and economic nationalism in those countries—with a desire on their part to secure even balances of trade.

"There is no doubt that the prospects for a restoration of prosperity are definitely brighter, domestic conditions are improving, with many factories working to utmost capacity, and the spirit of optimism and confidence which has now been present for some time is assisting internal conditions to assume a normal level of stability."