SPENDING FREELY

Dominion, Volume 10, Issue 2966, 2 January 1917, Page 7

SPENDING FREELY

AUSTRALIA'S HEAVY IMPORTS WHAT LIES AHEAD? . Trade figures for tho Commonwealth, just issued, for the first nine months of 1916 are notable for interesting features. Thoy show that Australians are spending moro freely than usual on imported goods, that the balance of trade against tho Commonwealth has increased rapidly, and that there has been a considerable diversion of business owing to the war. For tho first nine months of this year the value of goods imported was £60,362,000, equal to about £80,000,000 for the complete year, as compared with £42,000,000 ton years ago—an increase in imports to the extent .of nearly 90 per cent., as compared with an increase in population to tho/extent of 21 por cent. The exact figures arp.— Imports of Merchandise. Exports. '..-'£ ■ £ 1906 42.-U3.MO 52,027,000 191, ' 64,097,000 67,455 000 1913 ■"." 78,196,000 .74,773,034 1914.15 63.563.000 57684,000 1915-16 ■ 74.737.000 64,020,000 1916 (9 months) .60,362,000 - - The figures of value, remarks the Melbourne "Age," are doubtless greater because of higher prices,' but their magnitude is still sufficient to show that the money borrowed and circulated bv the seven Australian Governments, to the amount of about £100.000,000 a year, is being spent'freely.by all-classes in outside purchases. Tho-decline of £17,000,000 in the value of exports as between 1913 and 1914-15, was due mostly to the drought; and the difficulty of obtaining shipping to export the record harvest of last year was largely responsible fo'r exports /being £12,717,000 less than the imports in 1915-16. Now that arrangements are being made for shipping the wool and wheat, tho reoords for 1916-17 will probably be more favourable, but tho heavy buying abroad, compared to production, does not creatto the most satisfactory prospect. - . Important changes are to be noted in tho sources from which tho Commonwealth obtains its supplies. Although Gr«at Britain is .manufacturing hugely for war, and there are 5,000,000 Britishers under arms, imports from the' United Kingdom have fallen off by only-£2,275.000 a year, or. slightly more than 6 per cent., as compared with the annual average for tho five-year period' ending with 1913. Up to the beginning of the wnr tho average annual imports from Germany for five years were valued at £4,329.000. To where has that trade gone? During tho year just closing the value of goods imported to Australia from Amorica increased at the rate of about £5,500,000 a year, and is now double what it was before 1913.' Janan has secured a far greater share in tho Commonwealth markets also. The value of imports from that country for the first nine months of 1916 was nearly three times as great as the average for nny complete year during the fivo before 1913. The facts are clearly shown thus:— First Nine Yearly Average, Months, 1909-13. 1914-15. 1916. £ £ . £ TTnitcd Kinpdom 40170,000 37,896,000 29,825.000 countries", f... 8,569.000 9AM.WH) It 5.17.(10(1 .Ta°"n .....:. 804.346 l.M.m 2.3090C0 United States - 7.H3.M0 9,585,000., 12134,000 Germany 4329.000 — — Tho most remarkable increase in importations has been in apparel and softgoods, mostly for feminine wear. Before the war the highest amount [ spent abroad in one year for theso goods was about £17,000,000. That sum was almost reached in tho first nine months of 1916, the imports for that period being no less than £16,208,000, or at the rato of more than £20,000,000 a, year. During the. first four months of 1916 tho imports of apparel and softgoods wero no.less than 3,200,000 moro than tliby wore in tho ■ first four months of 1915. Both Ame- I rica and Japan made, great strides in the Australian market, the former country sending us £1,183,206 worth in the first nine months of this year, and Japan £1,081,183 worth. The halanco of the importations, to tho amount of about £12.200,000, came from the United Kingdom arid British countries. America also camo into tho musical instrument trade, and sold us in nine months to the amount of £132,099. In small unclassified articles, including fancy goods, toys, ete., purchases from America wero worth £2.315;069, and from Japan £760,266. Thore is no ovidonco that tho people as a whole, or any large section of them, aro retrenching in tTieir private expenditure. There is apparently little inclination to prepare for evil days ahead, or any real fear that the cessation of tho heavy war expenditure will interfere seriously with employment and wages. Most peoplo aro ready to spend with light hearts as thoy go, and to enjov tho annual holidays whilo they still havo tho opportunity. Lcadors of thought in England entered upon a strenuous campaign for public and private economy, in order te mako tho war bills lighter and ease the ultimate suffering; but in Australia tlicro has been no such leadership on the part of public mon. Tho Governments havo set an example of pxtravaganco in public affairs, and encouraged free private spending by Urn lavish distribution of both and revenue. Further war loans will bo raised by tho Commonwealth Government, and all classes of proplc may ho reminded that a little self-rlpnial now may onable thrni to assist their country, and at the isamc time seeuro a sound investment. There is also a fino opportunity, especially for thoso engaged in the rural industries, to mako arraiif/omonts for increased production in 1917. '