PLEASANT READING

Rotorua Morning Post, Volume 1, Issue 37, 6 October 1931, Page 3

PLEASANT READING

(Press Assn.-

prospects for wool british currency position favours dominion producers "BETTER TIMES AHEAD"

-By Telegraph — Copyright).

LONDON, Sunday. Pleasant reading for Australia and New Zealand is contained in an informative financial review by Mr. G. W. Alexander, city editor of the Sunday Express, who attributes the resumed buying of Kaffir shares on Saturday to the belief that competition in wool between Australia and South Africa is likely to force South Africa from the gold standard. This would result in South African gold producers getting full advantage of the premium on gold. Mr Alexander declared that Aus- • tralia's position is most favourable, for while her pound is at a 25 per cent. discount the South African is at present at' a premium of 17S per cent. This gives the Australian pastoralist a considerable advantage over South African competition. Both are large producers of merino wool and values approximate closely. Assuming the basis of a shilling per pound in London for wool the Australian grower would receive in his own currency ls 3M, whereas the corresponding figure in South Africa is 10. 2d. It may be argued that costs in Australia are higher than in South Africa, but it could not bridge this difference. In point of fact the low prices realised last season have already foreed a large cut in expenditure on Australian stations, and this will also help the results of the current year. Altogether the outlook has become much more hopeful for the Australian grower, and the XleVelopment will eventually benefit those concerned in handling and financing the product. The more assured outlook in the wool position appears to suggest better times ahead.