IN CANADA.

Waikato Times, Volume 121, Issue 20264, 5 August 1937, Page 14

IN CANADA.

BUSINESS CONDITIONS. IMPROVEMENT THIB YEAR. PRICES SHOW UPWARD TREND. (Special to Times.) MONTREAL, June 28. Throughout Canada business activity during the early months of 193 < has maintained a level well above that of the corresponding months of 1936. The index of the physical volume of business for the first four months of 1937 was 117.8, as compared with 106.5 in 1936, while the index of industrial production advanced from 107.8 to 120.9. This improvement has been general and ' there are but few branches of industry where the increase in operations has not reached substantial proportions. Wholesale prices have been rising, employment has increased, and merchants throughout the country report retail sales in greater volume than at any time since 1931. Commodity Prices. One of the most fundamental changes in economic conditions during the past twelve months has been the rise in the wholesale prices of commodities. The long decline in these prices terminated early in 1933, and the trend turned definitely upward in the middle of that year. This upturn reflected primarily the improvement in the supply and demand situation for many leading commodities, demand being increased by the progress of recovery throughout the world and latterly by the extensive armament programmes undertaken by many countries. Supply in some" commodities was adjusted through artificial measures, as in rubber and tin, and partly through natural causes, such as crop conditions. The improved position of the primary commodities i shown in the rapidity with which world stocks declined after 1934. Prices for grain and allied producthave been subject to sudden fluctuations, as changes in weather conditions altered crop prospects in various pa'ds of the world. On the whole, however, commodity prices are on* a much higher level than has prevailed for some time, and this is true for all groups represented In the official wholesale price index. This index stood at 86.1 in April, 1937, as compared with 72.2 in April, 1936. The improvement in p’ices for farm pro- j ducts has been particularly pro- j nounced, a factor which will do much in restoring the Canadian agricultural situation to a more normal basis. Manufacturing. Manufacturing operations have continued at a high level. This is especially true of the heavy industries. Production of pig iron in Canada up to April 30 amounted to 267,000 long tons in 1937, as compared with 225,000 tons in 1936. Steel output showed a corresponding gain—473,000 against 402,000 tons. In spite of uncertainties in the labour situation and the curtailment of operations during April, 81,272 units were-yproduced by the automobile industry during the first four months of 1937, as against 69,542 in the corresponding period in 1936. New records have been established in newsprint production with output for the five months ending May 31 aggregating 1,471,912 tons in 1937, as compared with 1,219,212 tons in 1936, an increase of more than 20 per cent. Agriculture. Spring operations on the farms were completed ,in good time in the Prairie Provinces, but were retarded in other sections by adverse weather. Owing to unfavourable moisture conditions in large areas of Saskatchewan the acreage sown to wheat in that province was somewhat smaller than last year; a slight increase was reported in Manitoba and practically no change in Alberta. Continued drought (; prevails in southern Saskatchewan, | but in other districts of Western Can - ada the general outlook for the new crops Is favourable. Cattle exports to the United States and Great Britain have not been as large as last year. Offerings have been • more moderate, with prices considerably above those a year ago, recent levels being the highest reported since 1930. The total shipped to the United States up to June 17, 1937, was 88,796 head, against 118,774 at the same date in 1936. Shipments to Great Britain fell from 12,081 to 2951 head. The movement of calves and hogs from Canada to United States markets, on the other hand, has been much heavier, the quota for calves being nearly exhausted. Bacon shipments, mainly to Great. Britain, are nearly 50 per cent, greater this year I than last. The output of creamery butter is slightly less than a year ago, i but. Increased interest, in cheese Is reported, with production of this commodity up more than 2 0 per cent. Exports of dairy products at this season are normally comparatively small. I Prices for farm products have been steadily rising. While the increase in the price of wheat has been outstanding, the upward movement, has been general. As a result, there, baa been a substantial improvement In farm purchasing power. On the whole, the Canadian farmer entered the new crop season under more favourable conditions, so far as prices are concerned, than he has enjoyed for several years. Employment and Trade. Increased industrial activity has greatly Improved the employment situation throughout the Dominion. For Canada as a whole, employment during the first half of the year has been at. a higher level than in any previous year except 1929 and 1930. Improved employment conditions have increased purchasing power, and this in turn is reflected in retail sales. This gradual up-swing in trade has been steady for more than a year, and in April, when corrections for differences in the number of business days and for normal seasonal variations were made, the general index number of retail sales compiled by the Domini..,, Bureau of Statistics stood at a higher level than for any month since 1 1931. with the single exception of December, J 936.