AUSTRALIA'S TRADE

Rotorua Morning Post, Volume 1, Issue 113, 5 January 1932, Page 5

AUSTRALIA'S TRADE

(Press Assn.-

BIG IMPROVEMENT LOW PRICES LARGELY OFFSET BY LARGE VOLUME" OF EXPORTS * VISITING ECONOMIST'S VIEWS «

— By TeKgra.pii — Copyright.)

WELLINGTON, Monday. A review of Australia's economic position was made by Dr. Copeland, Professor of Commerce at Melbourne University, in an interview to-day. Dr. Copeland arrived by ■ the Marama on a holiday visit to the Dominion. "For the current year ending June 193-2, the,volume of exports from Australia will be as high as it has ever been in the history of the eountry, but owing to the continued slump in wool prices, the values will be low," said Dr. Copeland. "They should reach from £85,000,000 to £95,000,000, cbmpared with £76,000,000 in 1930-31. The imports are still low, ahd Australia should 'have a surplus sufficient to pay overseas obligations' amounting to £30,000,000 and leave a surplus to build up reserves in London. "In the past eighteen months, Australia has redueed her debt in London from £18,000,000 to £5,000,000, and should be in a position, say in June 1932, to liquidate the whole of her floating debt. She is meeting her external obligations without appealing abroad and Unless she has a very Unfavourable season in 1932-33, she will eontinue' to do so. This has thrown a heavy burden on her, because export prices have when measured in depreciated sterling curreney, fallen 40 per cent to 50 per cent. Measured in gold prices they have fallen flO per cent to 70 per cent . Wheat and Wool Prices "Australia has , been hit by the fact that wool and wheat predominate in her exports. Prices have been very low for over twelve months. The volume of export iproduction has been well sustained, thanks to the favourable seasons and the high exchange rate which supports the primary producer at a time when costs are high and export prices low. "The national deficit will probably

be b'rought down to £15,000,000 for all Governments in the current year. About half of that will be aceounted for by the deficit in New South Wales. 'In the other States and in the Commonwiealth the position is well in hand, although it may be necessary in some cases to take further action to reduce expenditure or increase taxation. "Any improvement in export prices will have a marked affect on the Budget situation, and if Australia continues her present efforts, she should be in an excellent position to achieve equilibrium when the tide of world trade fiows more strongly, but this dannot apply to New South Wales, where a more drastie overhaul of Government finance is yet to be made. "I should add that the Budget deficit includes both unemployment expenditure and the additional exchange charge on the external debt. The former amounts to about £10,000,000 per annum, and the latter to about £8,000,000."