In view of the probable failure of Japan's virtual boycott of Australian wool, a trade agreement based on the new Australian tariff now seems only 2 matter of time. Japanese factories are equipped with' machinery adapted to Australian wool and diversion of purchases.to South 'Africa or South America' would be costly to Japen and might handicap hor trade in international markets It fs consequently regarded as significant that conversations have been resumed between the Minister for Trat'e Treaties (Sir Henry Gullett) and the Japanese Consul-General (fr, Maral) this week.
Even more gratifying than the firmness of the wool market has been the Increase in the price of wheat. For several years the wheat industry has been in a parlous state. Despite good harvests the Government has been obliged to. subsidiz> the industry and even so thousands of farmers are hopelessly in debt. Anaravation of the position was threatener by a drought in the wheat areas of Victoria and southern New South Weles this season and sowing was delayed, Bountiful rains at a providential moment entirely changed the outlook. A splendid harvest is forecast, and following the drought in Canada and the United States wheat prices in Australian markets soared to the highest levels attained for six years.
For reasons that are dificult to analyze trode and industry are also expanding rapidly. In the capital cities, the June-August period usually brings a slump in wholesale and retail trode, but this year many traders have done so well that they are beginning to wonder whether such activity can be maintained through what is normally the most prosperous period of the year.
Unempleyment has decreased, and Governments which have claimed the credit for Improvement in economic conditions are finding it extremely dificult to deny the always insistent demands for reduction of taxation.
Text read from the printed page and cleaned; old type leaves the occasional error.