AUSTRALIAN TRADE

Evening Post, Volume CXVII, Issue 125, 29 May 1934, Page 8

AUSTRALIAN TRADE

GREAT IMPROVEMENT

EFFECT OF CONFIDENCE

VISITOR IMPRESSED

. On his return from Sydney by the Moriowai today Mr. J. Abel, of Wellington, said that he had found confidence in the future very strongly held by all sections of the Australian community. He had come into 'daily contact with manufacturers^ retailers, and wholesalers, and in,not a single case did he meet a business man who complained about the condition of: trade. Everyone was reasonably well satisfied with the present conditions, and all without hesitation expressed their confidence in the near future.

Manufacturers were busy although some factories were not fully employed and were still doing a small amount of short time, Mr. Abel said. Retailers stated definitely that there was a better feeling among the buying public who were without doubt spending their money much more freely.' One very pleasing feature was the -definite swing of all trade towards better quality goods. Manufacturers had been compelled to produce lower grade and lowerpriced goods to meet the decreased purchasing power, but the public had now had more than enough of cheap goods, and; all sections of trade reported that they had been obliged by the buying public, to replace their stocks with higher-priced and consequently better quality goods. '~ i

Mr. Abel remarked that it was quite common to see queues lined up outside the picture theatres.shortly after 10 o 'clock in the morning, and amusements of all x'arieties were very well patronised, both by day and by night. The streets always seemed full of -eager shoppers, and it was^ difficult to walk through some of the largdr establishments on any afternoon. ■ . '. ' ACTIVITY IN-SYDNEY. Although he had taken particular notice it was difficult to find a vacant shop in the city area of Sydney, said Mr. Abel. There was also a considerable amount of new /building going on all on a large scale. The State had prepared plans for a very big building costing in the vicinity o* £250,000 to house certain Government Departments. An enormous amount of tramway work was being carried'out. At the Clyde Eugineering Company V works 12,000 were now employed as against 160 two years ago, and the building of the new corridor type of tramcar was ' proceeding apace. : Manufacturers of railway rolling stock, whose works had been: closed down, were now working on .contracts for refrigerator cars, and other large engineering firms reported that their turnover was three or four times greater than was the case last year. .■'■■.-. ■ /? .-..''< Despite the heavy! importations of motor-vehicles the demand for motorcars far exceeds the present siipplv " said.Mr. Abel. "There has been a great rush since the increase in the price of wool. . One firm reported that it was behind mdts. deliveries to the. extent of 800 vehicles. The body builders are -working at, full- capacity, and are hundreds of bodies behind in their deliveries, and in the trade orders for delivery taken three months ago are still unexecuted:. Petrol is selling at the present, time at Is 6d a gollon for second grade.", ■■, • . ; ■ ; , .->

V DEPRESSION-THROWN OFF. ;, Summing-up, Mr. Abel said tlilre seemed no doubt at all that Australia had thrown off the depression. The present apparently,happy cdndition of' all concerned; was undoubtedly due to the feeling of confidence resulting in the free spending of money which gave a Tery definite impetus to! all the wheels of industry. It seemed that New Zealand was in every, respect in as good a financial condition as Australia, and all that .was required here was to create confidence so that people would > loose their purse springs arid spend freely In those circumstances' conditions in New Zealand would very quickly change for the better. /■ .. *