WORLD TRADE

Otago Daily Times, Issue 23365, 3 December 1937, Page 17

WORLD TRADE

ITS VALUE IN GOLD (From Our Own Correspondent) (By Air Mail) LONDON, Nov. 6. According to the October number of the League’s Monthly Bulletin of Statistics, the gold value of world trade in August, 1937, was 3 per cent, lower than in the preceding month. This usual seasonal decline has been further accentuated, it is believed, by the situation in the Far East. Whether it reflects also the recent fall in world market prices, particularly of primary products, cannot yet be definitely judged. The gold value of the total imports of 74 countries was some 50 million old gold dollars lower than ir the preceding month, mainly on account of a reduction of imports into the United States of 10.5 millions, into China of nearly 12 millions, into Japan of about 7 millions, into the Netherlands of about 7.5 millions, and into Germany of about 5 million gold dollars. World exports declined less or by 24 million old gold dollars. The greatest changes to be noted are a decline of about 14 millions in the exports from the United Kingdom, of 7 millions from China, about 3 millions from Japan, and 4.5 millions from India. On the other hand, exports from the United States, Italy, Germany, and Czechoslovakia have shown a notable increase.

The decline in the prices of a number of important raw materials and foodstuffs which began about last March continues. In the case of foodstuffs, the declines are relatively small as compared with the increases since the middle of last year. Amongst textile raw materials, cotton prices declined most and have fallen back to the level of a year ago, Prices of wool and of silk have only declined slightly, whilst the price of artificial silk had not fallen by the end of the spring. Prices of timber and of wool pulp, which rose rapidly in 1936. have only declined very slightly in recent months. Rubber prices and prices of base metals (copper, tin, lead, zinc), which had shown the sharpest rise during the second half of 1936 and the first quarter of 1937, have dropped the most, but still maintain a higher level than in the middle of 1936. The production of base metals is still expanding, and has not so far been notably influenced by the recent fall in >rices. •BU