INDUSTRIAL PROGRESS

Gisborne Herald, Volume LXVI, Issue 20103, 24 November 1939, Page 12

INDUSTRIAL PROGRESS

RAPID AUSTRALIAN RATE WIDER INVESTMENT SCOPE CARE REQUIRED LATER The industrialisation of Australia, a marked feature of economic development in recent years, is now proceeding at such a rate that a degree of self-sufficiency not contemplated a few years ago has been attained, with further important developments assured in the near future. Trade, business and industry should benefit materially, and wider opportunities be afforded for profitable investment.

Directing attention to these prospects, the latest economic review of the Sydney Stock Exchange Research and Statistical Bureau points out that primary production retains its importance and under the arrangements with Britain a profitable market for all surpluses is available. The building up of export incomes that will result must react favourably both on the general economic position and on London funds.

"Recent developments must result in a decline in the volume of imports, but home markets will be stimulated by the increased business accruing from higher purchasing power, the demand for capital, labour and raw materials will be strengthened, and wider scope for profitable investment of savings will be provided.

"An additional impetus is being given to industry by the expenditure on defence, which is now over £1,000,000 a week. Huge supplies of textiles of various kinds, iron and steel products, non-ferrous metals, chemicals, and a wide range of other commodities arc on order, while the manufacture of aircraft, munitions and general war equipment is being vigorously organised. The new money to be raised by taxes and loans will flow back to fertilise industry and business."

Pointing out “an element of risk," the review states that in some cases purely economic considerations arc being neglected in the interests of expediency and national security and extraordinary care will be needed later on. when the demand set up by war requirements no longer exists, to bring production and consumption to a reasonable state of balance.