TRADE OUTLOOK

New Zealand Times, Volume XLIX, Issue 11296, 23 August 1922, Page 10

TRADE OUTLOOK

MORE EVEN BALANCE (AUSTRALIAN BANKS ENCOURAGE ENGLISH EXPORTS. GERMANY’S OPERATIONS. Ry Telegraph—Press Assn. —Copyright. Australian and N.Z. Cable Association. LONDON, August 21. The city editor of ‘‘Tho Times’’ holds that the period of greatest stringency in Australian exchange appears to havo passed. The banks in Australia have lately experienced a keen demand for accommodation in finance exports, and particularly of late shipments' of wool. These have been commanding high prices, partly as a result of German bidding for merinos, and the provision of credits for this business being largely supported by the German Government bv means of credits in sterling, derived from a 60 per cent. German tax on exports. The depreciation of tho mark does not interfere with such transactions, tho German exporter procuring payment in foreign currencies, handing over the required proportion to the Government in sterling, United States dollars, or other currencies. In order to increase the ability to meet these demands of Australia cn behalf of exporters, the Australian banks are naturally encouraging exports from England to Australia. These nave considerably expanded lately. The immediate future holds tho probability of a more evenly balanced trade position.

The German exchange has recovered on active buying, in view of tho hope of Sir Jolm Bradbury’s and the French delegate’s discussion having a satisfactory result, and despite the Reichsbank’s statement that paper marks in circulation amount to 205,275 million, against a holding of gold bullion of 1000 million marks.