MARKED DECLINE CLASSES MAINLY AFFECTED STEADILY IMPROVING FALL IN BANK RATE

Wanganui Chronicle, Volume 83, Issue 256, 30 October 1939, Page 8

MARKED DECLINE

CLASSES MAINLY AFFECTED

STEADILY IMPROVING

FALL IN BANK RATE

OVERSEAS TRADE WAR FACTORS IN BRITAIN COMPARISONS W ITH 1914 [ British Official Wireles = I RUGBY. Oct. 27. Overseas trade during September was •ffected very considerably, as was expected by the onset of war conditions. The prime cause was no doubt the uncertainty and dislocation caused by the changeover from peace to war conditions. The requisitioning of vessels for the expeditionary forces, the institution of the convoy system, the diversion of shipping from non-essential to essential trades, and the special difficulties of trade with Scandinavian countries were all contributing factors. The immediate institution of machinery for controlling certain exports, comparable with that which grew up gradually in the course of the war in 1914-18. also affected various branches of the expoit trade somewhat severely at the outset. It is noteworthy, however, that the reduction of exports in September compared with a year earlier was relatively smaller than in August. 1914. . Imports last month were valued at £49.900.000. The reduction compared with September. 1938, was £25,100,000. or 33 per cent. At the outbreak of the last war the fall in imports was rather less—the figures for August. 1913 and 1914. showing a fall from £56.000.000 to £42,400.000, or 24 per cent. The value of exports c< United Kingdom goods in September, amounting to £23,100,000. was £16.700.000. 42 per cent., less than in September. 1938. These figures exclude Government stores sent abroad for His Majesty’s forces. The comparative figures for August, 1913 and 1914. were £44,100.000 and £24.200.000. the reduction being 45 per cent.

Received Oct. 28. 6.30 p.m. LONDON, Oct. 27. Board of Trade returns for September are:—lmports. £49,924.000; exports, £23.087.000; re-exports, £2.370,000. Principal increases: -Imports, cotton and raw waste. £699.000. Principal decreases: Imports, grain an: flour. £3,775,000; meat. £1,489.00C cairy produce, £1,786.000, fresh fruit and vegetables, £1.263 000; beverage*. £2.421,000; other foods, £1,240.> 'c tobacco, £1,232.000; wood. £l4<cX: hides and skins, £850.009: non-feri;»v..-metals and man u fact u. £332.000, c.:ls. fats, and resins. £1.233 00". Decreas?? in exports: Ca ; . £846" ’9 iron and steel manufactures, £1.361. 000; machinery. £2.212,000; cottor yarns. £988.000; woollen <.nd worslei yarns an i manufactures. £942 J9O: vehicles. £3,945,000; miscellaneous manufactures, £1.024.009 Decreases in re-exports: Hides anc skins. £2j2,000.

EASING EXPECTED THE EXPORT POSITION LONDON. Oct. 27. One of the principal reasons for the decline in imports was the closing ot the Mediterranean for three weeks, which also affected exports owing to the delay in the arrival and discharge of ships. The position is steadily improving. especially during the last ton days, and the fail in exports should now progressively ease. The decline in September w is due to the cutting off of trade with Germany and the drastic reduction of exports to neutral countries, especially Scandinavia The Government has told exporters that a wide range of wa; materials L not subject to control and is readily obtainable.

INDIC ATES CON FIDENCE t British Official W eir.*.! Received Oct. 28. 6.5 p.m. RUGBS. Oct. 27. The reduction of the Bank of England rate to 2 per cent, yesterday r described in The Times as at once ar acknowledgment and a further contribution to the growth of confidence which has taken place over the last few weeks. The DaHy Telegraph City editor re war regime of cheap money is a remarkable testimony to the effectiveness of the new technique of monetary control end to the solid basis of the finances of the British nation.