MORE SPENDING

New Zealand Herald, Volume LXXI, Issue 21935, 19 October 1934, Page 18

MORE SPENDING

POSITION IN AUSTRALIA | INCREASE IN IMPORTS [FBOM OUB. OWX COBBESPGTnDEXT] SYDNEY. Oct. a In some quarters there has been grave concern because the latest figures issued iby the Commonwealth Statistician revealed a large adverse trade balance, much larger than at any period since special steps were taken fey the ScrulEn Government to correct the position. It is true that there has been a, vast increase in the value of imports, hut the economic advisers to the Commonwealth Government attribute this to abnormal factors, and do not regard the sign in the least unhealthy. It is pointed out that the Melbourne Ceniienarr, Sydney s special festival woek, and the Royal visit have, caused a great expansion in public spending,-which must have its effect upon the imports. It is notable that raw materials and capital machinery are responsible largely for the increased imports during the past two months. The raw materials become the finished products of the Australian manufacturers, and so give increased employment within the Commonwealth. 'Without an increase in this - class of imports there could be no expansion in the output of the factories affected. Again, there is little significance in the fall "of exports. July and August are never heavy exporting months, and there is always considerable irregularity in this respect at this time,of the year. The. two items, greasy and scoured wool, alone show a decline of about £2,000,000 for the two months, compared with last year, thus causing the decline in exports from to £7,834,000. The big fail in the value of wool exported is accounted for by the heavy withdrawals from wool sales earlier in the year, because of the law prices that have been ruling. There has since been a alight improvement in ttool prices and bigger clearances at all the sales. If this is maintained it is considered that the k>ss so far noted will be made up before very long. It is felt that the abnormal imports will begin to fall away soon, when the public have ceased their special expenditure, and the great retad shops are stocked for Christmas. The trade position should then an torn a tic-all v right' it-self. "" " Economists on all hands say .they think it a healthy sign that there should be greater sjiending at this time. Unless they had the; money, it is pointed out,'the people could not spend it. Times m ust be more prosperous than they were. •