The Timaru Herald WEDNESDAY, OCTOBER 18, 1933 LEAVING DEPRESSION BEHIND.

Timaru Herald, Volume CXXXVII, Issue 19623, 18 October 1933, Page 6

The Timaru Herald WEDNESDAY, OCTOBER 18, 1933 LEAVING DEPRESSION BEHIND.

“There is no gainsaying the fact that in Australia all thoughts of depression have passed,” stated Mr John Bishop, conductor of the Royal 'Wellington Choral Union, who returned by the Mararna on Monday, after judging at the Adelaide Competitions Festival for three weeks. “One is gripped by the intense thrill and earnestness of the Australian,” added Mr Bishop, “who, with his perfect confidence and trust in his country, is springing ahead with fine sureness toward prosperity.” Similar views, w r e are told, were expressed by Mr Marcus F. Marks, of Wellington, who also returned by the Marama. “There are no signs of depression in Australia,” he said. “Everywhere one went were huge crowds all appearing to be enjoying themselves.” He did think that with such a spirit prevailing, the country would be helped considerably through its troubles. He could not help noticing the spirit of optimism all through Australia. There are, of course, substantial grounds for that spirit, hence it is interesting to mention in support of this optimistic summing up of the Australian situation that the Spring Show of the Royal Agricultural Society of Victoria, covering nearly the last fortnight of September, received a record entry of nearly 13,000 exhibits, including a fine display of stud stock. The attendances were exceptionally good, the great grounds at Flemington presenting daily the scenes of a varied carnival. The good season, the rise in the price of wool and the response of city industries to the rural improvement, have created a fine spirit throughout the State. The most important economic event of recent years was, of course, the conspicuous advance in the price of wool. The Melbourne and Geelong sales improved upon the results reported from Sydney. British, Continental and Japanese buyers were strongly represented, particularly strong support coming from the Japanese. Melbourne prices ranged up to 22d. per lb. for exceptional quality. In comparison with October, 1932, they represented on the average an advance of 55 per cent, for merino and comeback, from 40 to 45 per cent, for crossbred, and 25 per cent, for coarser grades of crossbred. The total Australian clip is expected to yield about ten millions, Australian currency, more than it did last year. With wool at an average of a shilling, or somewhat more, per pound, the rural outlook is admirable. Never before has such a full realisation existed of the dependence of city people upon the prosperity of the man on the land. Hence the growing confidence because of the more favourable wool market. The National Bank of Australasia, in its monthly summary of Australian conditions, says that the effect of higher prices of export commodities on all forms of enterprise in Australia can hardly fail to be favourable: Farm demand will widen, employment will be more abundant, and many financial burdens will be eased. Favourable factors include marked increase in iron and steel production, increase in the gold yield, larger shipments and better price prospects for dried fruits, decline in unemployment, due to increased industrial activity, and reductions in oversea interest payments, resulting from conversion of loans at lower rates.

Money continues ample for all sound and adequately-secured business operations. Leather sales have improved, manufacturers of building materials and furniture are busy; woollen mills and clothing manufacturers maintain large outputs, and distribution of boots and shoes is reported to be of fair volume. Competition, however, is increasingly keen, and profits have been cut to narrow margins. In the grocery trade price-war special lines are sold at cost, to a limited extent, below cost. Not only has the improved rural outlook created strongly-grounded confidence in the future of Australia, but the success with which the great country and warmhearted people had attacked their economic difficulties has found so much favour in the Homeland that gratifying progress is being made in the conversion of Australia’s higher priced British loans. In September, (i and 5} per cent, stock to the amount of £20,951,000 was underwritten at 3J per cent, for 98 at a period of twenty years. The return to the investor will be £3 17s lid per cent. When placed on the market the loan was oversubscribed within an hour. During the last twelve months loan conversions in London have saved Australia annual interest (iu Australian currency, 25 per cent, off sterling) amounting to £1.500,000. Obviously Australia has firm grounds for optimism, particularly in view of the welcome rain that has fallen on the country’s expansive wheat belt—which, taken all in all, has inspired the people with a spirit ot confidence that ought to come to New /calami with the I more favourable outlook for wool and other primary products.