AUSTRALIAN FINANCE.

Press, Volume LXVI, Issue 20095, 26 November 1930, Page 12

AUSTRALIAN FINANCE.

Gold Discoveries,

j DEPRESSED conditions, j ! distributing trades j I affected. \ I [ '{'be November issue ot the Montluv Summary oi' Conditions, issued by the i National Bank of Australasia, Ltd., observes that business is in as depressed j a condition as it was last month, notI withstanding continuance of good j weather conditions and greater assurI auce of largo cereal crops and ample summer fodder for stock. Iho wool j sales are being held according to plan, with full offerings and satisfactory clearances at auction; but prices, e.».cepting for tho finest grades yiew !io upward movement. 'Che Kales lead io some circulation of money and wool exports provide much needed additions j to Australian banking funds in L°J l ~ don; but the prices realised fail to | covo'r the average cost of production, t ;.nd the proceeds available in London ' are insufficient to cover current dej r.iands of Governments and merchants j for London exchange. . . ! A record production of wheat is m I prospect. Harvest estimates— subject 1 to intervening weather conditions— are for a total yield of 210 million bushels, but at current prices the crop will be profitless to most farmers. Iho harvesting and transport of this ''irge ; viekl will provide much wont, and thus "give some stimulus to trade, but the j financial outlook in agricultural and ! pastoral districts is far from promisi i- • i i I The unfavourable condition in rural industries is paralleled in the mining industry. Production costs are maintained ~at an unbearable height by I'xecssive taxation and by legislation fixing wages and working .•cnditions regardless of the ability of tho industry to carry the burden. Secondary industries and distnbut- ! in.c trades are severely affected bv the • j fall in prices of Australia's main export commodities, unemployment has reached record dimensions, trado turnovers have declined, values generally |-.ave re<-eded, and the collection of hook debts has become increasingly difficult. Australia could not hope to avoiM !»einf severely affected by the marked ; and riipid fall in world prices for wool, j wheat, butter, sugar, and base metals i which has taken place during the past two years. Her troubles could have been "lightened and her ability to surmount them greatly improved, by a general movement for spreading too ! loss of income over the community. ' Also wise action by the Government, ' designed to maintain confidence in the " outcome and assist local production I and trade to function at the highest level possible under the altered conI ditions, would have helped materially. Instead of that tjie greater part oi the legislative restrictions on industry. ; including the high wages rates of the preceding period of prosperity, have Keen, with some—but much too few exceptions or reductions—retained in force. In addition, the burden of taxJ ntion. already onerous before the fall in prices, has been increased, and substantial additions are now in prospect. The swollen budgets of the years of 1 piosperity have been cut in some direc- ' tions, but the reduction has been quite inadequate and. speaking generally, has been made ineffective by tarilT increases and higher rates of direct taxation, imposed to maintain Governmental expenditure as a wliolo close to the level of previous years. Now, notwithstanding that the conditions outlined above are widely known, and their effects are apparent to the most casual observer, industry is threatened by a powerful section of the political Tjitbnvr prroup with still j higher taxation, inflation of currency. Governmental control of credit and other extreme Labour legislation. s S which would not fail to crush our al I r<-ady over-burdened industry and damage our fiillv extended credit system

Tlio events of the past two yearn have proved that Australia's business houses generally were in pood condition at the beginning of the depression, find strong enough to stand a ppriod of strain without undue difiicu'ty. The confidence of the people in our large and well-managed financial j houses, including the banks, insurance | r.nd assurance companies, pastoral I houses, etc., has been maintained at n I h:gh level. Tf the Governments generally had been njile to preserve a simi- ! jnr confidence in their abilitv or willingness to do the right things, it would have made a marked difference to the outlook and the pos.sibilitv of Australia's emerging undamaged from the period of depression, when the adjustments rendered necessary by the fall in prices and the stoppage of overseas borrowings had been mp.de. HOPE FOR EARLY RECOVERY. MR JOHN FULLER'S PREDICTION. "Australia sounds worse in the papers than it really is," declared Mr John Puller, of Fullers' Theatres, Ltd., Australia, on his arrival in Christehurch yesterday. Mr Fuller predicts that the Commonwealth will recover from the depression within two years. "Becauseiof the continual inter-State trade, and the fact that it is largely a self-supporting country, Ausralia can't fall down to an extremely low ebb," he said. " The banks have played a greater part in the national fortitudo than a lot of people give tliem credit for. In-ternally-raised loans, I think, are a great menace to the Commonwealth's future prosperity. If wo raised all our loans in London, as you do, we would not have nearly so much unemployment. The trouble is that local money, if taken by the nation, cannot be used for private enterprise. London, on the other hand, wilt lend money to the nation, but not to the individual.

"Gold discoveries, I am glad to see, are being encouraged by the Government; this is the sort of things that will do away with depression. All the same, I think it will be probably two years before everything gets right again. In the individual States, the big deficits have been caused chiefly by the railways. We suffer, too, from dual Government. They make a race of it, which is to grab the most taxes, and the taxpayer gets the worse of it. New Zealand is much better off. The worldwide depression hits you, of course, but ! not with such dire effects. 7 '

REILLY'S CENTRAL PRODUCE MART, LTD., DUNEDIN REPORT

Applet—Smrmcra 9b to "'.s, i)plicioUH 10s to 14s Lord WoJse.leya (French crafca) «a Gel. Pear3—Coles Sd, Nelie od to 6d. Potatoes Sd. Green pens &jd Tom a. t <)t) s First 1s Od to Is lOd, Becondß Is 6d to 1« Sd, thirds la Id to Is -Id. Gooseberries— Choice Sid, medium 3d. Chen-ins 2s 6d to Kb. Strawberries 2s 9-3 to £s Id. Porkor and bacon pigs Bi<l a lb- Section honey 12s. Asparagus 6s to 9s Lettuce —Choice Ss to 4b. others Sd to Ss. Cauliflowers 4s 6d. Cabbage 2s 6d. Cucumbers 16s Sd. Spring carrota 4s 3d. White turnips 2o a dozen Lunches. Eggs E.C.P.H. Is 2d, —6