AUSTRALIAN TRADE

Evening Post, Volume CXVIII, Issue 93, 17 October 1934, Page 14

AUSTRALIAN TRADE

ADVERSE BALANCE

PEOPLE SPEND MORE

For the first two months o£ the Commonwealth Government's financial year 1934-35 Australia's total unfavourable trade balance was £3,468,000, including bullion and specie, compared with a favourable balance o£ £1,480,000 in the July-August period of 1933-34. An official announcement to this effect was made today by the Commonwealth Statistician. In July and August, 1934, the commodity balance was unfavourable to the extent of £4,577,000, as against a favourable balance of £367,000 in the corresponding two months of 1933. The trade position therefore at the end of August Jast was £4,943,000 sterling worse than at the end of August, 1933. Calculated in British currency, merchandise exports in August, 1933, totalled £4,544,000, and merchandise imports £4,879,000, an unfavourable balance ot £335,000; but the figures respectively in August, 1934, were exports £4.120,000, imports £6,948,000, or an unfavourable balance of £2,822,000. Commenting on the abovi figures, the Minister of Customs (Mr. White) sa.d the principal items in the list vieic articles which were not made in Australia. They comprised, largely machinery or raw material for use in the manufacture of other goods in Australian factories, or luxury articles which, coming in greater numbers, were an indication of increased Prit Pw"s Japparent that people had more money to spend on something more than the necessities of life when greater numbers of such articles as silks and motorcars were being imported. The Minister added that an increase in imports this year was only to be expected, because ol the surplus of funds that had accumulated in London through the Commonwealth's excess of exports last year. IMPORTS EXPAND. The Melbourne "Age," in reviewing the position disclosed in the above returns, remarked that the decrease in the nationa income, primarily due to weaker demand for wool, had been a feature of economic conditions in Australia since the _ commencement of the first quarter of the present financial year. Hope is entertained that as the selling season advances the market once more may show the recuperative capacity by which it has so often been characterised in the past. Within the last few days some of the ground lost has already been regained. Publication on October 6 of the sterna trade return of the Commonwealth ioi July and August, 1934-35, revealed a disquieting flood of imports and a f.™} 10" which will require careful watching m the interests of manufacturing industries and the Commonwealth credit overseas. In other spheres evidence is seen that Australia is emerging from the depression, while most other nations remain in its trough. From data completed during the quarter ended September 30 last encouragement may be derived. Deposits of all the cheque-paying banks,, including the Commonwealth Bank, increased by £24,259,000 in 1933-34. Savings Bank credits showed an increase. UNEMPLOYMENT LESS. A net increase of 22,057 in wireless licences in force in Australia was reported men who had been idle and on the do c Nearly all the balance-sheets of public Sanies issued in the past three months exhibit Kama and in many instances raders' turnover was of growing volume Notwithstanding the attitude of the Minister of Customs (the "Age" points out) the unfavourable trade baance. revealed on the first two mouths' trading of the current financial year is viewed with, grave concern in political as well, as in industrial circles. Apart from the increased imports of motor-cars, silks, and macT. nerj?the trade returns show substantial increases in.the imports of many goods of a kind which are made in Australia such as glass and earthenware, cotton yarns oan4s piece goods, and cotton piece goods.