VICTORIA'S PREMIER.

Dominion, Volume 6, Issue 1808, 22 July 1913, Page 6

VICTORIA'S PREMIER.

HIS WORK IN LONDON,

"THE SUPREME PROBLEM." CAUSE OF DEAR MONEY. Mr. Watt, tho Victorian Premier, has dono excellent work in London, not only for Victoria, but for tho Coniinoiiwcaltli as a whole. The London correspondent of the Sydney "Telegraph" states that Jlr. Watt's exhaustive personal inquiries into tho working of tho money market, the reception and distribution ol Australian produce, and tho still more vital matter of immigration, should prove of especial value. Mr. Watt impresses one by his great activity and singular directness, lie is quick to see and quick to move. During the few weeks he has been in this country (states the correspondent), he has, I should say, covered moro work than any Australiau public man who has been in England in .recent years. The Victorihn Premier puts immigration first. "To my mind," lie says, "it is tho supreme problem for the Australian people. It transcends all else, not even excluding education or defence. Upon immigration everything in Australia depends. The man who solves tho population issue for Australia makes the future of the continent safe. Without a bold immigration policy wo are not safe, and all else that we do may provo a wasto of time. The amalgamation which ha-i been brought about between Victoria and New South Wales is designed to effect economy, and to secure greater efficiency by tho appointment of agents of tho best class, who will ba uniformly instructed, and it is also designed to promote cooperation in the arrangement of steamship berths to Australia. It has been my strong opinion from tho start that the Commonwealth should undertake tho wholo of the immigration business, particularly at the London end. It may be that so long as the States aro handling tho railways and the land it will bo advisable for them to deal with the reception and distribution of settlers. But there is no reason that I can see why this amalgamation, if it succeeds, should not form the nucleus of an organisation, that the Commonwealth must establish and operate for all the Australian States. I have satisfied myself tliat Australia can receive very large numbers of tho best classes of British settlers, provided vo go the proper way about it. _ If wo do not run a very big immigration policy and hasten the settlement and the defence of our land, the fault is entirely with us."

"Must Pay 4 Per Cent." Sir. Watt agrees that a bold immigration policy to be successful must bo accompanied or even prcccdcd by a bold policy of internal development. Australia must mako ready for hor immigrants; sho must take special care against disappointment and the circulation m tho Mother Country of unfavourable reports from thoso who go out. To this end tho expenditure of borrowed money is essential. Part of Mr. Watt's business was to raiso substantial loans for Victoria. After considerable disappointment it now appears assured that he will at least get part of tho money he needed. It has been his misfortune to bo a borrower during 1 tho worst money season London has known for many, years. But he has very properly come to the conclusion that the time is past when Australia can look for money at 3 por cent, or 3i per cent, and that, like the vest of the world, we must pay current rates. "I have gono very thoroughly," lie says, "into tho conditions under which loans are raised, ascertaining us far as possiblo tho views of the largest tinanciers and broking houses. I .think I know as mucli about the subject as any mail could know who has been in London l'or only two months, Australia has been very fortunate, in £ho past in getting cheap money. All tho present indications point to a dearer period ahead of us. There was a time when Victorian 3 per cent, stuff was at a premium in London; now tho bulk of the 4 per cent, is at a discount. I think Australia must be content, in the next few years anyhow, to pay at least -1 per cent, lor its money. But notwithstanding, this, I feel that it is still a good investment to borrow money at 4 per cent, for development purposes. I do not find any fear among the British investing public about the prospects of tho Australian States which aro controlling our national debts, but naturally the investor here measures tho prico Australia offere for loans against that offered by oilier countries, and acts accordingly. Ho won't lend us money at 3J per oent. if 110 can get 4 per cent, from India. He will not lend money cheaply to tho Empiro either now or in the future, so long as European and Asiatic countries offer aim 5 per cent, and G per cent." "You find 110 Imperialism in connection with finance?" "Nono whatever. Nor do I expect it, Loudon lends its. money to the highest bidder. For instance, the Chinese loan worked out at a little better than 7 per cent, for the underwriters, and so far as I can seo it is quito as well guaranteed as any other loan. It was the misfortune of Mr. Peake, Mr. Scaddan, and myself to strike the worst peri&d since 1902, But still I think the money should bo borrowed. Wo must mako the best of .the position. The general idea of the market is that as soon as the Balkan AAar finally disappears, a large number of enterprises upon which development has been arrested in all parts of the world will bo resumed. This will make a heavy call for money, and hence financiers are expecting what they term a 'bad autumn' ; in' other words, dear money. One of the principal causes of tho shortage of capital is tho world-wide Wave of prosperity which is everywhere inducing private enterprise to add to its capital. The demand for money has recently increased enormously. Still, if we are to develop our country we limst have the capital, and I think wc can as well afford to pay current prices as any other Government."

Extending Our Markets. • It is the strong opinion of the VictoriciH Premier that tlie duty of aii Australian Government, either State or Federal, has not ceased when land has been made available by a policy of public works and new settlers attracted. "Our settlement and production are regulated by the markets which are available. Therefore, I think it imperative that far more attention should be given to the exploitation first of the markets'of the United Kingdom, and then to the markets of the outBide world. It is very well to say that Great Britain already consumes every pound ot' the stuff we send to her, and that the prices paid are profitable to our producers. While that is satisfactory, so tar as it .goes, I firmly believo that if proper steps are taken, higher prices can be obtained for the produce we now send to Great Britain, and at the 6amo time a market created for very much larger shipments. The weakness of the present marketing arrangement is the centralisation in London. It is a. great thing to have in this city a market of six or seven millious of people. But this is only the beginning of British consumers. I was greatly surprised in my inquiries in the provinces to find whole counties, and some of the greatest of the provincial eitics, entirely without any of our three great lines of fresh produce—butter, meat, and fruit. We should continue to serve London with all she wants for ■herself, but we must endeavour to send stuff direct to a number of other great ports of the Kingdom. Without a doubt there are great receiving facilities at wine of these other ixtrts than there aro in London. For instance, the accommodation at Tilbury is very cramped and disappointing. I surprised the authorities by telling them that the whole of tho Tilbury Dock space could bo placed within our auxiliary river accommodation in Melbourne, and with a lot of space to spare, after which we have, of course, our bay accommodation.

New Steamship Services. "I hope 011 my return to Australia to be able io secure the co-operation of one or more of the other States in subsidising special lines of steamers to serve the east and west, coast of England ami .Scotland. For instance, a vessel might trade with frozen produce direct to Hull 011 the east, and to Jirislol, Liverpool, Manchester, and Glasgow 011 tin? west. Without a doubt if the proper stops aro taken we can greatly .increase tho demand for Australian produce, and by creating competition improve the prices received by ouir producers. Mr, M'Rride, the new AgentGeneral, is to act specially here as a trade commissioner, and will carry on the investigations .1 havo started/