FINANCIER’S REVIEW.

Star (Christchurch), Volume LXIV, Issue 955, 27 December 1933, Page 7

FINANCIER’S REVIEW.

The Present Position in Australia. Writing from Melbourne on December 19 a leading financial firm said: As the year closes economic conditions in Australia are somewhat mixed. There are two favourable features, the first the reduction in the overseas interest burden to which we have already referred, which has afforded relief amounting to approximately £1,850,000 sterling, or, say, £2,312,500 in Australian currency at present rate of exchange; the second, the striking recovery in the price of wool which, during the current season, has increased by approximately 60 per cent, and has already added £10,000,000 to the value of the natural wealth produced in Australia during the year, whilst more than one-third of the clip remains to be sold. The pastoral position is therefore greatly improved, but the agricultural position remains unsatisfactory. The hopes of recovery in the price of wheat which obtained a few months ago have not been realised; instead, wheat has seriously receded in value, and great difficulty is being experienced in dealing with the new crop. The dairying industry also has suffered a severe setback through the drop in the price of butterfat. The S.O.S. calls from the farmers are being met by legislative action to provide bounties and fix prices. Such remedies are anathema to believers in the. doctrine of laissez-faire, but in these days most of us believe in any doctrine only to the extent that it suits our own circumstances. In other fields of national endeavour, the Australian outlook has improved to some extent. Public finances are in a sounder condition, and a measure of relief m the matter of taxation has been afforded bv the Commonwealth Government. In addition, there has been a diminution in unemployment, and industry generally is more active. Although still a long way below predepression levels, profits of many industrial organisations have displayed a rising tendency with a consequent reflection in share prices. The movement towards recovery has not yet progressed far enough to restore complete confidence, but at least retrogression has been stayed and the prospects appear more favourable.