EXPORT RECEIPTS

New Zealand Herald, Volume LXXV, Issue 23057, 7 June 1938, Page 7

EXPORT RECEIPTS

AUSTRALIAN REDUCTION DECLINE OF £4,000,000 COMMONWEALTH BANK VIEW Present indications, according to the Commonwealth Bank, suggest that the value of Australian exports for the current trade year may be less by £'4,000,000 than that for 1936-37. The bank's review for May points out that imports of merchandise for the 10 months ended April 30 were valued at £116,500,000 in Australian currency. For the last few weeks of that period the slackening of flow recently evident was not continued. Allowing for seasonal movements, a continuance of tho present inflow for the rest of the financial year would give a total of about £140,000,000, compared with £113,500,000 last financial year. Export prices improved slightly in tho lirst part of last month, but at the end of the month the bank's export price index, based on returns in Australian currency, had slumped to tho lowest point of tho year. However, the average for May was above that for April. The bank believes that if the whole of the available production of export

commodities is sold, and if prices &re maintained at present levels, the value of exports, including gold produced for 1937-38, should bo about tho same as for 1936-37, when it was about £159,000,-000. "It seems probable, however," the review states, "that carry-overs in excess of normal will be experienced in both wool and wheat. Present indications suggest that this may lower tho value of exports by up to £4,000,000." Internal activity remains high, the bank states, but it notes that the deterioration of economio conditions in the United Kingdom and the United States has continued. In the United Kingdom the downward trend in the volume of new investment for commercial purposes has continued to offset the increasing defence expenditure, and consequently the seasonal expansion of activity in the spring months has been less evident than usual. In the United States the rate of industrial activity continues slowly downward. Steel output in April was about 33 per cent of capacity, slightly below the level for March, and 63 per cent below the level of April last year. A further decline occurred in the early weeks of May. Tho decision to resume large-scale Government expenditure, however, may have a stimulating effect on business activity. TEA SORTING CRITICISED TOO MUCH DUST LEFT CALCUTTA FIRM'S COMPLAINT A plea for the better "sortation" of tea by producers is made by Heath and Company, Limited, Calcutta, in its review of the 1937-3S Calcutta tea season. "Too many brokens and leaf teas," the review states, "contain an unwarranted percentage of dust and 'small.' At the present time, when tho potential supply is so much greater than that required, it should be possible for gardens to produce without difficulty, as their quota for export, well-made teas, cleanly sorted, and as free from stalk as possible. It is to be regretted that during the past year so many teas were unnecessarily mixed and showed evidence of coarse plucking. "The standard of ihe requirements of United Kingdom blenders and dealers as well as the American and Canadian trade is higher than it has ever been, and it is sometimes difficult for buyers on this market to secure their quantities of tea up to the requisite standard in this respect." CHEAP GERMAN CARS SALES IN GREAT BRITAIN EFFORTS TO CAPTURE MARKET Lraoit °U r OWN CORRESPONDENT J LONDON, May 14 In tho last six weeks over 3000 German cars have reached England. There are distribution centres all over tie country, andean assembling factory has been established The British motor industry lias now awakened to tne fact that, since the beginning of the year, one in every seven cars of the 10 horse-power class sold in England has been of German manufacture. It is alleged that German manufacturers receive a subsidy of 45 per cent in order to capture foreign markets and bring foreign currency to Germany. The Board of Trade has promised to make inquiries. It, is said that tho Germans are at the moment deliberately undercutting tho British motor-car manufacturers. A car, for instance, after the payment of all duties, may probably be sold at a price possibly £SO below the real cost, to the German maker When the preliminary transaction is completed, however, the German authorities are possessed of a certain quantity of foreign exchange. The exchange is used for the purpose of buying up the depreciated securities and something like 100 per cent profit can he made by the Germans on these transactions. The loss on the article is more than made up by tho profit from the purchase of the debt l/i a cablegram from London on May 12 it was stated that British motor traders were dissatisfied with the reply of the President of the Board of Trade, Mr. Oliver Stanley, in the House of Commons deprecating the possibility of the dumping of German Opel cars in Britain. It was stated that the Manchester Guardian's City editor had pointed out that the retail price in Britain of German ears was £135, £lO under the lowest price for a British 10 horse-power ear FALL IN WOOL PRICES LAND COMPANY'S LOWER PROFIT The omission of an interim payment on the ordinary stock of tho New Zealand and Australian Land Company, Limited, London, is explained in a recent statement by the directors. They state that owing to tho fall in wool prices since September profits from that source have been substantially reduced. Many of the company's properties have also been affected by tho prevailing drought conditions. In these circumstances it has been decided to' defer consideration of any question of dividend on the ordinary stock until the accounts for the year ended March 31 arc completed. The fixed preference dividend of 2 per cent will be duly paid on June 10. In 1937, the company paid an ordinary dividend of 4 per cent.