COMMODITY MARKETS AND PRICES.

Manawatu Standard, Volume LVIII, Issue 76, 26 February 1938, Page 4

COMMODITY MARKETS AND PRICES.

THE CRISIS AND AFTER. (.By “Penloo.”) The political crisis in Britain, which has caused world-wide interest, and which at one tune threatened just what everyone imagined would be the result, has really cleared the atmosphere. There will be no election and no up-setting of business; on the contrary, there is now every likelihood of a vast general improvement. The London Stock Exchange has recovered, and London business men are optimistic. The New York Exchange, contrary to expectations, shows a recovery and this leads one to believe that President Roosevelt lias modified his labour legislation. The British Board of Trade is granting Italy credits for about £5,000,000, but this must not be mistaken for a loan. British exporters who sell to Italy will be guaranteed payment, but» Italy must have a definite clearing arrangement. The proceeds of all goods sold by Italy to British importers would go against Italy’s purchases of British goods. This is not an isolated case, for Britain has clearing agreements with several countries, including Germany. It is these agreements that have helped Britain to expand her exports. Italy is practically bankrupt, and could not possibly trade with Britain except on a cash basis; therefore the clearing agreement provides her with the credit that she needs to carry on trade. Thisis about the most effective way of changing the war mentality of the Italian authorities. OVERSEAS TRADE.

The figures relating to tlie overseas trade of the Dominion are published in the Monthly Abstract, which lias just come to hand. The value of our exports in the calendar year 1937 was £66,713,000, an increase of about £lO, 000,000 on 1936. Practically the whole of the increase was derived from the sale of wool, which brought extraordinarily good prices last year. The butter exported last year is valued at £16,986,000, as compared with £15,317,000 in 1936, an increase of £1,600,000. There was an increase of about 180,000 cwt in the quantity exported, which is small, so that the increased return must be due to the good prices ruling in the second half of the year. The increased monetary return from cheese was about £250,000, although there was a decrease in the quantity exported of about 11,000 cwt. The exports of beef for the year were valued at £709,000, as compared with £607,000 in 1936, an increase of £102,000. The quantity exported was 544,000 cwt, as against 495,000 cwt in the preceding year. This refers to frozen beef. The /chilled beef trade made a substantial advance last year, the quantity exported being 307,000 cwt, against 240,000 cwt, and the return was £536,000, against £382,000. Farmers in the North Island appear to be devoting close attention to this branch of the meat trade, for beef prices in the local market are advancing. The quantity of lamb exported last year was 2,769,000 cwt, which was an increase of 106,000 cwt on the 1936 figures. - The monetary return was £9,380,000, against £8,417,000, an increase of £963,000. Concentration on meat production would pay, and we have a long way to go to fill our quota. The quantity of wool exported last year was 835,573 bales, as compared with 909,132 in 1936, a decrease of 73, 559 bales, and yet, owing to exceptionally good prices the return was millions more than in 1936. The wool cheque for last year was £19,093,291, as compared with £13,293,583 in 1936, an increase of £5,799,708, so that of the £10,000,000 increase in exports wool contributed nearly 60 per cent. This substantial increase in lyool undoubtedly had a remarkably beneficial effect on trade. But for the current year the wool cheque cannot possibly be as good as last year’s, for there has-been a steep fall in prices. However, the possibility of a recovery in wool prices in the near future cannot be ruled out. There was an increase of about £21,000 from the sale of hemp, and this was due to a slight advance in prices. The actual quantity exported last year was 5193 tons, against 5707 tons in 1936.

The value of the past year’s imports was £56,160,000, as ' compared - with £44,258,000 in 1936, an increase of nearly £12,000,000 which is a greater increase than shown by the exports. Tlie greatest growth in imports was in motor vehicles. Last year 36,782 motor vehicles were landed in the country,, as compared with 30,264 in 1936, and the declared values' were £5,791,132' against £4,546,239. Some other imported articles also show big value increases. The hosiery imported was valued at £429,000, against £246,000; apparel ancl ready made clothing, £1,814,000, against £1,262,000; boots and shoes, £708,000 against £508,000; drapery, £451,000 against £369,000; cigarettes, £481,000 against £382,000; tea, £822,000 against £750,000; and whisky £420,000 against £382,000. Of our total exports of £66,713,000 last year, £54,481,000 went to British countries, the United Kingdom alone taking £50,629,000. Foreign countries took £11,654,000, the amount taken by Germany being £915,000, Italy £lO, 000* and Japan £3,127,00. Except the United States, Japan was our best foreign customer. The value of our imports from Japan was only £626,000.