AUSTRALIAN TRADE

New Zealand Herald, Volume LXXVI, Issue 23259, 31 January 1939, Page 5

AUSTRALIAN TRADE

UNCERTAIN PROSPECTS EFFECT OF LOWER EXPORTS Prospects in Australian trade, finance and commerce are not clear, states the latest summary of conditions issued by the National Bank of Australasia. The bank expresses the view that the effect of a lower income from exports will be compensated by increased Governmental expenditure—largely from funds to be borrowed —on defence works and equipment. The Nummary also states that the rainfalls, of the last six months have been below normal over the greater part of the productive districts in all the States, and an early break in the season, with widespread soaking rains, is required to provide autumn feed for stock, and enable farmers to cultivate in preparation for sowing cereals. The wheat harvest lias turned out better than expectations, yields being about equal to normal in all States, except Victoria, where a harvest of 18,000,000 bushels, or .'50,000,000 bushels less than last season's yield, is all that is expected. Wool returns this year will be much less than for 1937-38, and conditions indicate a rapid and heavy fall in butter production. A rise in export prices would bo very helpful, but present indications are not favourable, the export price index having declined from 723 in July last to 049 on December 22. These figures compare with 823 for the financial year 1937-38, and 918 for 1936-37.

"The construction industry continues in active operation," continues the summary. "Current works are spread over/ all classes of buildings. Dwelling houses, factories, city buildings for banks, insurance companies, hotels and shopkeepers, large public hospitals, the ordinary works of the Federal and State Governments and the largely increased expenditure on -defence are providing builders and the wide range of industries from which builders draw their supplies with ample work. Private works may be expected to ease off as a result of the fall in community income arising out of exports, but to a large extent it is probable that the expanded programme of the defence department will absorb the labour released from private construction." MUTTON IMPORTS BRITAIN'S CONTROL PLAN CRITICISM BY M.P. HARDSHIPS FOR THE POOR Critical comment on Great Britain's proposal to restrict supplies of imported mutton and lamb is contained in a letter to the Birmingham Post by Mr. R. Sorensen, M.P. for Levton \Vest. He finds danger for the consumer in tho producers' efforts to obtain a guaranteed price as well. "It has been proved again and again in the course of the past year," says Mr. Sorensen, "that the collapse of English lamb and mutton prices had little or nothing to do with Empire imports; for, while the price of British sheep products fell lower and lower, those of New Zealand mutton and lamb were fully maintained and there was no acceleration of normal supplies from this source. Inferentially, therefore, the glut of home-grown products and tho consequent fall in their prices ai'ose from faults of marketing. "While 1 should welcome a sound scheme for putting an end to alternating periods of glut and shortage, of low prices and high prices, it is onlv too evident that if, on the one hand, British farm prices are to be guaranteed, and, on the other hand, Dominion supplies are to bo restricted, the poorer class of consumer is in danger of suffering greatly. Such a policy is likely to lead to restricted consumption and a decline in our nutritional

"New Zealand has attained the enviable position of being able to maintain stable prices in a good class of trade through careful regulation of supplies, plus standardisation of quality. At the same time, her cheaper classes of mutton meet the needs of great masses of consumers who cannot afford either English lamb or even the best New Zealand. "Everybody must wish the Government and the farmer well in any fair scheme to regularise supplies, standardise quality and stabilise prices at a remunerative level," concludes Mr. Sorensen, "but it is due to the public to see that the food of the working classes is not jeopardised or curtailed in the process." EXTENSION OF CREDIT HELP FOR BRITISH EXPORTERS Extension of credit facilities to enable British exporters to meet foreign competition is the chief provision in the Export Guarantees Bill recently introduced by the British Government.. According to the Financial Times the bill has two objects in view. On one hand it continues the existing export credits scheme, with certain improvements in the light of the experience of the last 12 months, and for this purpose the limit of the Export Credits Guarantee Department is increased from £50,000.000 to £75,000,000. On the other hand the existing scheme is modified to meet changed conditions in various countries. There is to be a new plan, limited to £10.000,000 at any one time, to cover risks winch may not in any ordinary business bo justifiable. This new proposal has been found desirable because in a number of cases the department iias been asked to cover by way of guarantee the export of goods on conditions which the Advisory Committee might feel are not on a strictly commercial basis. MINING NEWS YIELDS OF COMPANIES "Worksop Extended (West Coast). — 240 v.. from 9500 yards in 128 hours. Gillespie's Beach (Westland). —450z. 13dwt. from 30,000 yards in 2;!9 hours. Clutha River (Otago).—ll7oz. in 139 hours. Grey River (West Coast). —ICSoz. from 83,594 yards in J23.} hours. SYDNEY EXCHANGE CLOSED SYDNEY, Jan. no Anniversary Day was celebrated as a public holiday in Sydney and the Stock Exchange was closed to-day. CANADIAN OIL PRODUCTION The increase last year in the production of petroleum from the Turner Valley oilfields in the foothills of the Canadian Rocky Mountains near Calgary might bring Canada to second place in the British Empire as an oilproducing country. In 1937 Trinidad held first place, while Burma and Bahrein Island in th<> Persian Gulf vied with each other for second place. Production in the Turner Valley oil fields in the first eight months of 1938 was '2,838,175 barrels ahead of 1037<