IMPORTS TO AUSTRALIA

Otago Daily Times, Issue 21784, 25 October 1932, Page 9

IMPORTS TO AUSTRALIA

DISQUIETING- ASPECTS,

(From Our Own Cobbespondent.) SYDNEY, October 13.

In many quarters the big increase in imports into Australia and the decrease of exports is regarded as distinctly disi quieting, for it means a reversal of the position that did so much to relieve the economic stress of the Commonwealth. Imports into Australia during August totalled £5,506,000, which fs 50 per cent, greater than the monthly average for 1931-32 j and more than the .amount for any month since November, 1930. The total imports for the first two months of the current trading year are shown at £10,148,000, compared with £0,562,000 for the corresponding two months of last year. In August the exports of merchandise were £3,814,000, which is £400,000 less than for August last year. The import figures are given in sterling, and the export figures in Australian currency. Commenting on the figures, the Acting Commonwealth Statistician (Professor' Giblin) points out that the mere fact of an adverse balance for the two months of the current trading year is not in itself of great significance. Accidental causes may postpone exports in one year and push thorn on in another. Roughly, it might be said that the wheat crop was marketed earlier than in 1931, and that wool exports were held up in July and early August, while prices were abnormally low, in the hope of the recovery which has now taken place. Nevertheless the figures disclosed an important trend in Australia's balance of payments. The net inference from the existing position was that the sterling value of . exports last year, namely, £78,000,000, was the maximum that, could reasonably be hoped for this year, and that a' possible decline of about 5 per cent, should be provided for. That maximum had to provide for imports and for Government obligations abroad. The interest bill was about £26,000,000, omitting interest on British war debts, and if £3,000,000 was allowed for the remittance of sinking funds abroad, there remained a maximum of £49,000,000 to finance imports. The Customs returns to date point to the fact that the imports for September will be only slightly lower than those in August. It is certain that the imports for the three months will not be less than £15,000,000, corresponding to a yearly figure of £60,000,000. The present volume of trade, therefore, indicated that Australia would import goods worth £11,000,000 more than the country's exports warranted. If the present volume of imports was continued, without any further upward trend, funds abroad would be depleted, and the exchange rate would rise naturally. Producers would welcome anything that would bring about an .increase in the exchange rate. They are rather annoyed that neither the Federal Government nor the Commonwealth Bank lias seen fit to follow their advice and the advice of the Premier of New South Wales in this matter. However, a further increase in the exchange would mean ruin to many business people, and heavy losses to others. There is one bright aspect of the position. The increase in imports was not anticipated to the extent achieved, and, thanks to increased Customs duty collected, the Federal revenue shows a surplus for the first quarter of the current financial year of £2,619,000. The Customs revenue for the three months totalled £5,553,000, which is at the rate of £22,212,000 a year, against a Budget estimate of £17,800,000. As a result of these figures the prospect of tax relief in the current year is much enhanced. The Prime Minister has stated that if the position warranted it he would not hesitate to reduce taxes at any time, and it is confidently expected that early next year the Federal finances will be so buoyant that it will decide on a course of action that will give satisfaction all round. There is a fear in some quarters that the first measure of relief will be given to those who pay the land tax, and if he neglects altogether those who pay income tax there is bound to be an outcry.