TRADE OF AUSTRALIA

Evening Post, Volume CXIX, Issue 98, 27 April 1935, Page 12

TRADE OF AUSTRALIA

LONDON FUNDS

POSITION REVIEWED

"Evening Post," April 27

Reviewing trade conditions .in Australia for the' past ■■month, the summary ofthe Nafioual Bank; of Australasia comments on the recent welcome rises in prices of soj\ie. primary .products.. Special reference is made tomarked changes in tlic values of: Australia's imports and exports for 'the eight months ended February, which'-changes have been the subject of :j considerable discussion, in the Common- j wealth"and> have not escaped notice in Xc\vZealand,' ' : ".''' _'. ; The'bank, points out .that the estimated j favourable balance for the eight, months | of the Anstruliaiv Xjovernmeut's current financial'1 year is £0,157,000, which is £23,C55,000 smaller- than the balance recorded for the parallel eight months ot, 1933-24. The. difference is made up ot an inctease of -£10;20S,C0ll in imports and a reduction ifi exports, of £13,377,000. The adverse movement is an outcome ot various, factors, notably: (a) The fall in oversea prices, of wool from an average of lOd per II) in 11)33-34 to <J>M for the i>a<t eight mouths; Ib) the small \olumo of imports ,of tile pu*t three years and roii--ciiuciit depletion ot storks; (c) tiuimproved internal trade of the past ciu'liteen months: (d) traders aiiticipat,lni!i of higher juices for wool, wheat, nnd butter which have, failed to matciiiilisc; (oi competition among oversea [ manufacturers • for larger Shares m the Australian'market. . , 'J'he fall' of ■£ 1,000.000 sterling vn.tho value of imports for February and rise o £000.000 sterling in exports, compared with the January figures, indicate that the movement towards a sounder position is m proxress. . , . ... Wool available for shipment during March-June months is much heavier than for the corrcspondins;, months ot IVJi. Overseas demand-is keen.and prices have recently strengthened. Butter production continues at a, "high level. The export surplus of wheat is cdtfiparatively small, but prices for wheat are moving upward. Kestrictions 'on meat exports to ureat Britain may cause a marked decrease m ■ ' Concern' has been expressed in some quarter lest the decline in ' the- favourable trade balance should lead to a rapid depletion of Australian reserves abroad. There appears to be little, if any, ].ustilication for such ojjimous at this juncture Undoubtedly icserves will have to be drawn upon to some extent to cover iLe current year's outgoings, but. lor the twelve months ending June 30 the. coi lon ■ reserves may ; not .exceed 110.000,000, fterling.' ■ .' ■. , , STERLING IN LONDON. Woidina to the tabulation made by Dr. Roland Wilson, of -the Commouwealtb Treasury, Australian -reserves .of international currency valued at £68,240,iUy sterling were available in London .on .lime 30, 1034. This is £22,000,000 sterling higher than '.a year earlier, when no concern was expressed about the stability of the position: No valid reasons are apparent now for anticipating a change in the rate in the near future, lne many factors which may affect the position next year or the year after cannot be. estimated with any reasonable degree of accuracy.' remarks. the summary. - . ; •r TRADE OF THE STATES. As' for the reports of the various States, it is shown that trade turnovers in Victoria are well maintained and a good demand for winter' textiles is. reported. Building trade active. Bank clearings show••inprcases. ■ Kailway traffic receipts are greater.. The quantity of gold won up the State has increased. The season for dairying, is -very good. Iv New South' Wales retail trade js described.as quiet during March, . but there were'heavy hotel' bookings for the holidays. Increased employment in factories ,is reported. Seasonal conditions in the country districts were mostly, satisfactory.' 'Secondary industries had generally improved., Thfi outlook for. the pastoral industry .in Queensland, particularly in certain inland districts, is described as devious, A record output of cotton is exj>ected.: Sugar-cane fields arc in fair order. Conditions of dairying districts are fairly {satisfactory. Improved retail.turnovers in .Brisbane., wjth wholesale, houses receiving larger orders from storekeepers are renorted. South. Australia experienced the most"useful; rains "for years past." Cost nf rationing'nnd relief of .unemployed were, lower than "at any t.inie since December, 1930. ' Minefal production at £1,739,478 for 1934 reached;a record. ' Dairying industry of Western Australia is developing rapidly.. Apple crops are likely to be i record at 1,250,000 eases. Improvement in trading conditions noted during, recent months is maintained. Building permits for Perth in January and February doubled those ,of. last year. Improvement in em; ployment is reported by Tasmania. The apple crop is estimated at 4,250,000 cases; a decrease of 700,000 cases for the year. Itetail return's are up 10 per cent, on those of last year, but' the margins of 'profit smaller. .