IMPROVEMENT IN BUSINESS

Otago Daily Times, Issue 22365, 12 September 1934, Page 17

IMPROVEMENT IN BUSINESS

(Continued from previous page). INTERNAL BUSINESS. In the absence of detailed monthly or quarterly figures covering items such as total production, total employment and the volume of retail trade, the bank debite given above constitute the best available indicator of changes in the volume of internal business. They, may, however, be supplemented by other figures which throw some light on changes in particular parts of the field. A selection of these is given in the next table, which compares figures for the June quarters of the last three years. SELECTED COMPARISONS.

These figures show that, as compared with last year, the total volume of exports for the June quarter fell, while receipts increased substantially. Imports increased both in volume and value. There was an appreciable expansion also both in coastal trade and in the tonnage carried by the railways. Building permits increased in number, but declined slightly in value. There was a considerable increase in the number and value of both mortgages registered and land transfers. These figures, however, like those for b.uilcling permits, have been at very low levels and are still far below those customary before the depression. Totalisator investments arc lower than last year, but much higher than in 1932. The official index of share prices has improved since about the middle of 1932, and is now more than 40 per cent, above the

level of two years ago. The. increase in sales tax collected may under-state the improvement, as the June quarter's figures in 1933 may include some taxes for the March quarter, when the sales tax was first imposed. HIGHER PRICES. A survey of available figures indicating the trend of business conditions m New Zealand thus suggests that there has been much improvement during the last year. The improvement is due mainly to the higher export prices received for certain important products and to tlie higher exchange rates ruling, which have combined to increase the money income of the country expressed in its domestic currency. The latest Budget provides definite evidence that the long fall in public revenue has ceased and an upward movement is well under way. Money is now exceptionally abundant, while interest rales are low, and promise to remain low for a while. If it were certain that the export receipts of the first half of 1933 could be relied on to continue, it would be safe to predict a rapid recovery of internal business. Unfortunately some uncertainties still _ remain. The recent fall in wool prices, owing largely to the defection of important buyers, the possibilities of restriction of other exports, and the low prices still ruling for dairy produce, all make the future less certain than could be wished.

In other parts of the world substantial improvement has, generally speaking, been recorded since the early part of 1933. The improvement is least in gold standard countries, but even there unemployment has generally declined. In America and Britain and in most of the countries whose currencies are attached to sterling, the improvement has been greater. Prices have risen appreciably, but the rise has been checked during the Inst two or three months. Reports from England indicate that internal trade there lias now reached approximately the level of 1929. External trade, however, has recovered much less. The total value of British exports is now only about half what it was in 1929. The general conclusion reached in England is that a considerable degree of internal recovery can be secured by internal measures, but that the restoration of complete prosperity must depend largely on the removal of trade restrictions throughout the world, and on the expansion of both export and import trade. A similar conclusion probably holds true for New Zealand.

.Tune Quarter. 1033. 1933. 1934. Exports— £ in. N.Z 9.74 8.26 10.S5 Thousands of tons 229 291 2C2 Imports— £m. N.Z 5.94 6.82 Tons 331 352 Coastal Trade— Tons 392 350 393 Railway ton miles (thousands) 93,723 86,327 100,106 Building Permits— Number 1.720 1,930 \ allies £m .621 .571 Mortgages Registered— Number 3,590 2,980 3,350 Values £m 2.32 1.61 2.40 Land Transfers— Number 4.010 3,270 4.330 Values £m 3.00 1.99 2.90 Totalisator Investments £1000 630 999 829 Share prices index .. 66.9 79.6 94.4 Sales tax £1000 $ 447 494