H.—35.

Export Price—Index Numbers— continued.

STote. —These index numbers show the movements since 1914 in the prices obtained for commodities exported. The f.o.b. declared values at the port of export as recorded by the Customs Department are taken as indicative of the prices realized for these commodities. Export prices in 1930 were, on the average, only 144 per cent, above the 1914 level, the average prices realized for wool being actually 8-5 per cent, below the 1914 prices for that commodity. The ■monthly figures for 1930 reveal a sharp decline, the falling-away in prices being particularly marked in the later months of the year. Wool prices reached in February, 1931, a level 49-4 per cent, below 1914 prices, while the combined price index for all commodities exported during March, 1931, was 14-2 per cent, below the 1914 level. Comparison of Internal and External Price-levels. The consequences of this rapid collapse in export prices are only too evident in the stagnation of business activity and the alarming increase in unemployment. While the prices received for our primary produce have fallen with remarkable suddenness, the costs of production have not as yet fallen to the same extent, with the result that our principal business —farming —has become relatively unprofitable. A survey of the effects of price-movements since 1914 on farm expenditure was recently made by the Census and Statistics Office, and the results of this investigation, which are summarized below, shown in conjunction with other indexes, throw considerable light on the economic situation at the present time. It should be noted that the farm expenditure index covers not only prices of materials, but interest, wages, rates, and taxes, and other items making up the farmer's budget of expenditure.

26

(Base: Average of prices during the year 1914 = 1000.) Month and Year. ggge. Moat ' WooL andlfuow.' Miscellaneous. 1929. Monthly. January .. .. 1472 1583 1713 155] 1466 1537 February .. .. 1498 1528 1660 1754 1506 1534 March ' .. .. 1367 1487 1595 1709 1483 1475 April .. .. 1366 1477 1473 1978 1256 1480 May.. .. .. 1295 1441 1562 1958 1358 1470 June .. .. 1322 1456 1630 1699 1463 1457 July .. .. 1334 1452 1507 1819 1484 1468 August .. .. 1383 1416 1512 1840 1387 1500 September .. .. 1335 1380 1332 1638 1337 1366 October .. .. 1440 1367 1283 1588 1437 1385 November .. .. 1365 1296 - 1225 1434 1469 1289 December .. .. 1388 1340 1157 1503 1496 1286 1930. January .. .. 1309 I 1447 1149 1462 ! 1268 1257 February .. .. 1309 1422 936 1503 1302 1202 March " .. .. 1243 j 1419 897 1590 1365 1201 April .. .. 1134 1397 804 1428 1348 1117 May.. .. .. 1181 1354 877 1520 1288 1190 June .. .. 1156 1344 964 1476 1238 1210 July .. .. 1194 1315 961 1202 1207 1174 August .. .. 1188 1267 930 1455 1080 1187 September .. .. 1095 1259 867 957 1262 1063 October .. .. 1062 1180 783 1029 1106 1032 November .. .. 1010 1203 725 908 1215 969 December .. .. 988 1314 539 1126 1252 914 1931. January .. .. I 952 1207 566 856 1097 873 February .. .. 983 1169 506 882 1185 877 March " .. .. 1005 1030 548 720 1389 858