IMPERIAL TRADE

Hokitika Guardian, 13 December 1920, Page 4

IMPERIAL TRADE

f AUSTRALIAN & N.Z. CABLE ABSOCIATI IN

LONDON, December 10.

Mr Ivellaway in the course of an interview with the Australian Tress Association, said that Imperial trade was none too bright, notably with India and Australia. The former was suffering from a reduced exportation of 100,000,000 pounds weight of tea to Russia yearly. There was a good demand for British goods in Canada ■ nd New Zealand. Both these countries were able to buy, and both were able to pay, but both were holding back in anticipation of prices breaking. Australia was suffering a financial reaction, but he was confident that when the wheels of commerce were running smoothly, Britain would recover most if not all, of her lost trade; also her undisputed supremacy as to the source of supply. Australia had been importing goods much exceeding the value of her exports to Britain. Consequently, there was a pronounced shortage of liquid funds in Australian banks in London. Referring to the wool position, Mr Ivellaway said a fairly even flow of credit for Australia had been preserved for the last Tew yeal-s by the British Government’s promptness in paving for produce purchased from 'be Commonwealth On the wool being appraised, Australian payments were made in London within a fortnight of the appraisement, and the long v.vit which would otherwise have intervened, pending the arrival of documents against them. Furthermore, the British Government paid in advance for wheat and wool exported last July slid August. Mr Ivellaway cbncljuded: “From a statement made by the Commonwealth Treasury officials, it appears that the position created by the above-mentioned economic factors, is only temporary The position will right itself when the present wool clip and 'criming harvest is realised. The present stoppage of credit, with consequent heavy restriction on export business is likely to endure until March, unless the Commonwealth takes action in the meantime.”