The Washington herald., 1922-01-22
AUSTRALIA FACES
HOPEFUL OUTLOOK
FORPRESENT YEAR
Commercial & Financial
Activity Face Promis-
ing Outlook.
FINANCES ON RISE
Advance Of Pound Sterling 20
= $4.22 Stimulates Buying
OF American Goods,
FINANCES ON RISE

Australia's outlook for eommer-
cial and financial activity durins
1879 is much brighter, az the result
Of the combined Influences arisinG
from an increasing export trade, a
higher value Of the pound sterling,
lower freight rates. decreasing
stocks Of imported merchandise and
such Improvement in banking con-
dItions a. 20 render II easier 20 Oh
tain credit. according 20 a oabls
dispatch from Trade Commiasionef
J. W. Sanger. of Melbourne, 70 the
Department Of Commerce.
- Financial CsnAffte.s.
The further advance Of the con-
version value Of the pound sterling
from ti.lS on December IS. 1891, 20
s4-22 on January -. has stimulated
the placing Of still more new or
ders for American goods. The rate
Of exchange on London has declined
slightly. The money market is
easier. and loans. which were being
granted reluctantly during Decem-
Der. owing TO the fear OF the banks
that Liquidation Of merchandise
stocks had not progressed far
enough. are now more readily OBJ,
tanned The discount rate remains
unchanged at 70 2 per cent on
best commercial poper and 81 TO
IN per cent on overdrafts..
Bank clearings in Melbourne for
the period December to 81 were
El5. 200 200. compared with $4,000
900 for the period November Z 20
December s. and with $4,000, 900
for the corresponding period Of
1890. Sydney clearings December
to December 81 were E6l. .OOo. 900. the
same figure as for November 90
Decennber s, as against f63.ooo.ooO
for the corresponding period last
year. These reported ciearings in
dIcated greater business activity
during December than during the
Total bank clearinEs for the cslen-
dar year 1891 and the decreases
from the corresponding totals tor
the year 1890 were: Melbourne,
E6Os .OOO, 900. a decrease Of fll5.-
00O. zoo; Sydney. fTos 1000. 900, . de-
crease OF $4,000. 600; Adelaide. f1BT.-
0OO. 900. a decrease Of $4,000. 900. In
using these comparisons Of the
bank clearings for the two years
as an index Of relative business ac-
tivfty, consideration should be
given TO the fac< that price levels
were higher in 1920. and that 1890
was a year OF rather heavy specu-
lation.
Imports and Exports Is,a,1staE.
While figures OF imports and ex-
ports for November are Iot yet
available, the indications are that
both, and especially exports. will
show increases over the figures for
October (see commerce reports for
December 2s. 1s21). thus still fur
ther adding TO the favorable trade
balance which for the four months
Of the fiscal year. July TO October
81. amounted 10 E6,s76.0oo, compared
with an adverse balance Of flS--
4ls 900 in the same period OF 1920.
Stocks of imported merchandise
on hand are generally well proper
toned 70 the demand, and the heavy
overstocks which worried botn
banks and merchants at this time
last year are now pretty well work
ed down. Stocks OF export mer-
chandise are normal except stocks
Of meat and butter. which are eN-
cessive. The prospects for wool are
encouraging. sales have been salts
factory. and the market continues
firm and steady.