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Statistics are available as from January, 1930, of the imports into the Irish Free State of a few commodities classified by country of origin. These indicate that, in certain cases, striking changes in the direction of imports in favour of Commonwealth countries have occurred during the past twelve months.

Effect of Depreciated Currencies: The stimulus afforded by exchange depreciation to exports from Australia and New Zealand of various agricultural commodities, especially butter, meat and wool, has helped, with other causes, to undermine the strength of particular markets, and has resulted, for example, in making Irish wool practically unsaleable its normal market. In regard to butter, the same depressing effect has been visible. As a result of exchange depreciation by other Commonwealth countries and of their bounty systems, the Government of the Irish Free State have been compelled to introduce a system of bounties on exports of butter, simply to keep the country in butter production. This system they are anxious to terminate as speedily as possible, but, with the 25 per cent exchange premium which butter exports enjoy in Australia and the lesser premium in New Zealand, these countries can place the commodity on the British market at prices below cost of production in the Free State. The following table illustrates the points outlined in this paragraph:—-

PERCENTAGE CHANGES BETWEEN 1929 AND 1931 IN QUANTITIES, VALUE AND PRICES OF BUTTER AND WOOL IMPORTED INTO THE UNITED KINGDOM

The huge increase in the imports of butter from Australia and New Zealand between 1929 and 1931, and the decline in the imports from the Irish Free State, will be noted. In consequence of these increased supplies, the price of butter has fallen by one-third. With regard to wool, the increased supplies, which were presumably the main cause of the fall in price, came mainly from South America. Fall in Agi'icultural Prices: As a producer of primary commodities, the Irish Free State has suffered severely from the fall in agricultural prices in recent years. The following index number of agricultural prices indicates the heavy and abnormal extent of the decline. (Base 1911-13=100):- —- 192 139.3 193 124-8 193 110-1 Agricultural prices in 1931 were 21 per cent less than in 1929.

Commodities and origin 1930 1931 Jan.-March 1932 In thousand In thousand In thousand „ , , cwts. cwts. cwts. iJaeon: Commonwealth 29 39 49 Other 342 362 17 Jiutter: Commonwealth 24 27 17 Other 7 2 1 Wheat: Commonwealth 1,202 3 222 1 068 ,, . £ ther 4,114 2,413 ' 134 Maize: Commonwealth 445 3 , Other. 6,935 11,198 3^047 W neaten flour: Commonwealth 3,089 3 166 734 Other _ '242 *211 35 in thousand in thousand in thousand £ £ £ Touring Motor Cars: Commonwealth 947 801 142 Other 110 173 8

(+ increase — decrease) Quantity Value Price Butter: % % % Australia and New Zealand _|_gg _±_ 9 Irish Free State !. -33 -54 -32 Wool: Australia and New Zealand _j_ 3 „43 Irish Free State _17 „59