CANADIAN TRADE

Wairarapa Times-Age, 17 July 1939, Page 5

CANADIAN TRADE

AN IMPROVEMENT RECORDED. NEW AGREEMENTS MADE. OTTAWA. Economic conditions in Canada during the first two months of 1939 showed improvement over the same period of the preceding year, the level of productive activity averaging nearly three per cent higher when measured by the index of the physical volume of business based on 46 significant factors. The index averaged 112.4 compared with 109.3 in the first two months of 1938. The Dominion Bureau of Statistics reports that “the new trade agreements (with the United States and between the United States and the United Kingdom indirectly affecting Canada) which went into force at the beginning of this year have had salutary effect on many of those industries largely dependent for their prosperity on export trade.” The large stocks in world markets, due to unsettled conditions, particularly in cotton, rubber, tea, tin and wheat have, however, had a strong influence in lowering Canadian prices. The mineral production index in Canada was practically unchanged at 183.9 in the first two months of the year. The manufacturing group was more active, the index advancing from 105.0 to 108.1, a gain of nearly three per cent. The output of electric power which is a reliable indicator of industrial activity, continued to maintain its long term upward trend, and averaged six per cent better at 4,600,000.000 kilowatt hours compared with 4,300,000,000 kilowa-tt hours in lhe first two months of last year. Commodity export trade was 144, • 172,000 dollars, compared with 133.215.000 dollars, a gain of 8.2 per cent. Considerably more gold is going to the United States this year. Fish, cheese, canned salmon, ' planks and boards wood pulp, shingles, automobiles and copper all showed encouraging gains in value or volume. Imports on the other hand, at 84,000.000 dollars, registered a recession of 13 per cent with large declines in raw cotton, bauxite, as well as many other items. Consequently, the favourable balance of trade in the first two months of 1939 was more than 60,000 000 dollars.