BETTER PROSPECTS

Rotorua Morning Post, Volume 2, Issue 558, 15 June 1933, Page 3

BETTER PROSPECTS

AUSTRALIAN TRADE BALANCE GO'ES UP Sydney, May 11. IReturns of Australian trade for the nine months of the current trade year show a favourable balance of £33,392,000. This compareS with a favourable balance of £30,742,000 for the corresponding period of 1931-32. Much of the favourable trade balance, however, was due to the shipment abroad of the gold reserve of the Australian notes fund. This is estimated at £11,000,000 for the nine months, so that actually the position is slightly less favourable than would seem from a casual examination of the figures, and has given rise to a little apprehension in some parts. Figures suppiied by the Commonwealth Statistician show that in the nine months exports of merchandise, valued in Australian currency were 6.5 per cent. higher than in th'e nine months of the last financial year, and totalled £76,719,614, against £73,553,725. Bullion and specie exportedf in the period was £14,133,733 hi'gher, at £21,010,564. Imports compared with the nine months of last year were 38 per cent. higher. Valued in English currency, merchandise imported was £43,878,000, against £31,803,000 in the previous year, a rise of £12,075,000. Imports of bullion and sterling reached a figure almost double that of the previous year, at an aggregate of £892,000. The bullion and specie balance was £16,012,000. Large increases were recorded in the value of wool, wheat and butter which were exp'orted, while minor gains occurred in the export of rabhits and hares, sheep skins, flour, and apples. Decreases were rfegistered in meat, sugar, rabbit skins and timber. In imports the general movement was upward, and textiles, petroleum spirit, machines and machinery, and other metal manufactures, made a large advance. Decreases were j mostly of small account, the biggest losses being in whisky and wool packs. Australia requires £32,000,000, ineluding exchange, to meet overseas interest payments alone, apart from other services. Before the House of Representatives goes into winter re- . cess the question will he raised hy the Labour Party whether the trade balance, as revealed by the latest figures, is sufficient to meet overseas commitments. It. has heen the boast of the Labour Party that the Scullin Governments's policy of Customs prohibition and restrictions righted the trade balance, and enahled Australia to pay its way overseas, and. there will be a strong move for the reimposition of these prohibitions in view of. the increased imports and the lower 'trade balance that is likely later. It is doubtful whether the Scullin prohibitions were alone responsible for the halancing of trade. The buying power of the people had become so restricted that a falling-off of imports was imperative. The condition of the C'ommonwealth is certainly much better now than it was when Mr. Scullin reigned.