AUSTRALIA’S OUTLOOK

Hokitika Guardian, 5 January 1932, Page 5

AUSTRALIA’S OUTLOOK

RECENT IMPROVEMENT. ECONOMIC POSITION REVIEWED j (By Telegraph — Pt. Press Association) WELLINGTON, January 4. ' A of Australia’s economic position was made by Dr Copland, Professor of Commerce at Melbourne University, in an interview to-day, Professor Copland arrived on the Marama on a holiday visit to the Dominion. “For the current year ending June, 1932, the volume of exports from Australia will be as high as it has ever been in the history of the country,” he said ; “but, owiug :to the continued slump in prices, the values will be low. They should reach eight-five to ninety millions, a.s compared with seventy-six millions for 1930-31.

The imports are still low, and Australia should have a surplus sufficient to pay her overseas obligations, amounting to thiifty millions, and to leave a surplus to build-rap reserves in London. During the past eighteen months, Australia has reduced her floating debt in London from eighteen millions to five millions, and she now should be in a position by 30th June, 1932, to liquidate the whole of her floating debt.

She is meeting her external obligations without borrowing abroad, and, unless she has a very unfavourable season iu 1932-33, she will continue to do so, This has thrown a heavy burden on her, because her export-f priors, even, when 'll} ensured in the d predated sterling currency, have fallen by forty to fifty per cent, Measured in gold prices, they have fallen from sixty to seventy per cent, Auatra&i has been severely hit by the fact that wool and wheat predominate in her export trade, and for these the prices have been very low for over twelve months. The volume of export production has been well sustained, thanks to. the favourable seasons and to the high exchange rate, which supports the primary producer at a time when costs are high and export prices

are low. , The budget deficits will probably be brought down to? fifteen millions for all of the Governments in the current year About half of that will be accounted for by the deficit in New South Wales. In the other states, and in the Commonwealth, the position is well in hand, .although it will» be necessary, in some cases, to take further action to reduce expenditure and increase taxation. Any improvement in export prices wi havia a marked effect upon the budget situation, and if Australia continues her present efforts, she should be nianex* cellent position to achieve a budget equilibrium when the tide o wor tuade flows more strongly. But this cannot apply in New South Wales, where a more drastic overhaul of -flmrnce-hus-yeCAo he.mido, JL add that the Budget deficitß tndude both the unemployment expend dux. a the additional exchange charge on th« external debt. The former a mounts about ten niUVibns per annum, and the latter to about eight millions.