A REVIEW OF BUSINESS.

Evening Star, Issue 20988, 30 December 1931, Page 6

A REVIEW OF BUSINESS.

Durinj the year the Government Statistician has made an increasingly useful review of business conditions in his monthly abstract of statistics. One published on December 23 is just to hand, which shows the position np to the end of November. On the whole it m; y be said that things are not worse, even if there be only a very few signs of trade revival. Spasmodic signs of improvement can be noticed, but no settled trend has yet appeared, and the measure of business activity afforded by statistics of bank debits suggests a slight lapse for November. However, there is an nnmistaken cessation of the transference of funds from free deposits to fixed deposits, which has lasted so lorg. This seems to suggest an impending return of confidence, while there is also another good sign in the slackening off of the ratio of advances to deposits. The export season has on the whole opened brightly, at least as far as quantities are concerned. Values are still low, and earlier expectations for a rise in the price of wool were only partially realised, especially in the local salts. However, with a considerable increase in the quantity of our primary products now being exported, there will be some compensation for present values. Both lamb and dairy produce show record shipments for the month. After the abandonment of the gold standard the London dairy market showed a sharp improvement. But this temporary stimulus has now abated, and towards tho end of the month prices were tending downward, though consrierably better than at the same time last year. For the first time for several months imports have been low enough to show a favourable balance over exports, and for eleven months of the year there will he a trade balance of £7,000,000 — a vast improvement on the £500,000 balance of 1930. Financial circles arc reported as very dull, both real estate transactions and mortgage business failing to sustain even the improvements recorded in the previous month. Railway traffic compares favourably with a similar period last year. A better relationship between railway operating revenue and expenditure is gradually being established. Shipping continues dull, and also migration and tourist traffic. The bright spots certainly arc tho over-increasing level of production in the dairy industry, a very high lambing percentage—B6.79 per cent, of tho breeding ewes, being almost equal to the Ibri) record of 88.65 per cent. —and the banking factors previously mentioned. The indications are, therefore, for a good export season, in which increased quantities will tend to balance the relatively low prices, and at least keep our farmers on tho land. Needle-- to say good conditions among farmers would soon be reflected among other sections of the community, and help to remove cause for the anxiety with which many tend to regard next winter.