MORE SPENDING

Otago Daily Times, Issue 22398, 20 October 1934, Page 10

MORE SPENDING

POSITION IN AUSTRALIA THE EXPORTS DEFICIT (From Our Own Correspondent.) SYDNEY, October 11. In some quarters there has been grave concern because the latest figures issued by the Commonwealth Statistician revealed a large adverse trade balance, much larger than at any period since special steps were taken by the Scul m Government to correct the position. is true that there has been a vast increase in the value of imports, but the economic advisers to the Commonwealth Government attribute this to abnormal factors, and do not regard the sign in the least unhealthy. It is pointed out that the Melbourne Centenary, Sydney s special festival week, and the royal visit have caused a great expansion in pnbi’o spending, which must have its effect upon the imports. . , It is notable,that raw materials and capital machinery are responsible larg< -y for the increased imports during the past two months. The raw materials become the finished products of the Australian manufacturers, and so give increasei employment within the Commonwealth. Without an increase in this class of imports there could be no expansion in Jus output of the factories affected. Again, there is little significance in the fall of exports. July and August are never heavy exporting months, and there is always considerable irregularity in tins respect at this time of the year, the two items, greasy and scoured wool, alone show a decline of about £2,000,000 for the two months, compared _ with last year thus causing the decline in exports from £9.571,000 to £7,834,000. The big fall in the value of wool exported is accounted for by the heavy withdrawals from wool sales earlier in the year because of the low prices that have been ruling. There has since been a slight improvement in wool prices and bigger clearances at all the sales. If this is maintained it is considered that the loss so far noted will be made up before very long. It is felt that the abnormal imports will begin to fall away soon, when the public have ceased their special expenditure, and the gieat retail shops are stocked for Christmas. The trade position should then automatically right itself. Economists on all hands think it a healthy sign that there should be greater spending at this time. Unless they had the money, it is pointed out, the people could not spend it. Times must be more prosperous than they were.