TRADE IN AMERICA

New Zealand Herald, Volume LXXI, Issue 21972, 1 December 1934, Page 13

TRADE IN AMERICA

AN IMPROVED OUTLOOK SOME INDUSTRIAL REVIVAL EFFECT ON OTHER COUNTRIES "There is an improved outlook for future trade between New Zealand, Australia and the United States," said Mr. K C. Squire, American Trade Commissioner in Australia,, who arrived at Auckland by the Monterey yesterday. Mr. Squire is a through passenger .to Sydney from the United States, where he spent several months studying industrial and trade conditions.

"There are two factors contributing to ,the improvement of international trade in the Pacific," said Mr. Squire. "This year's drought in the United States will probably make it necessary to purchase supplies of meat from neighbouring countries later. The revival of American industry, however slight, increases the heavy purchases made from other countries in the Pacific, and this increases the buying power of Australia's and New Zealand's good customers in the Orient."

Indications in the United States pointed clearly to the fact that the panic, which followed closely on the heels of the depression, had disappeared. People there realised that the conditions prior to 1929 would not return, and they were readjusting their standards of living accordingly. Capital was returning to the United States from overseas, and a state of mutual confidence and co-operation was growing between the Government and the banks.

It could not be said that the depression was over while there were so many unemployed, but good signs could be detected from a study of the progress of different industries. The valuation of fixed assets was becoming steadier, as shown by less violent fluctuations on the stock exchange and even by a slight steadying in real estate values. The Federal Housing Administration was expected to bring about a revival in the building trade. A slight improvement was occurring in the production of steel, motor-cars and timber. Foreign trade had been gradually increasing over six months. Successful commercial .treaties had been made with Cuba 'and some South American countries, and attention would soon bo turned to other countries.