The Hokitika Guardian THURSDAY, DECEMBER 29th. 1921. " AUSTRALIA’S TRADING POSITION.

Hokitika Guardian, 29 December 1921, Page 2

The Hokitika Guardian THURSDAY, DECEMBER 29th. 1921. " AUSTRALIA’S TRADING POSITION.

In a report upon “The Economic and Commercial Situation in Australia," Mr S. W. E. M’Gregor, lI.M. senior trade commissioner in the Commonwealth, issues a warning of “an almost inevitable increase in unemployment.” The long period of fictitious prosperity arising out of the heavy expenditure of loan money and the generous payments made by the British Government for Australian produce, he says, “has now < ; otne to an end. To day Australia is facing the stern reality of a heavy debt, a seriously diminished world’s purchasing capacity combined with falling prices, for the commodities she has to sell, and the very difficult situation caused by the accumulation of the heavy stocks of wool bought and paid for by the British Government, which will have the effect of permitting only a portion of the present season’s wool clip to be sold this year. The restriction of consumption by the public together with an almost inevitable increase in unemployment, is likely to have an increasingly adverse effect on trade for some little time to come. Imported goods were pouring into Australia during the nine mouthy ending March 111 in a most extraordinary manner, so that heavy stocks acqumulated, much of which could only he realised at a considerable loss. During the same period exports i materially declined, Australian credits were exhausted in London and a very difficult exchange position arose which appears likely to last for some time. The gravity of the position outlined above is well-known to the commercial community, but it is not yet realised by the people as a whole or, in particular, by the workers who through their loaders have recently declared that under no circumstances must the present high level of wages be reduced or working hours be increased. This pronouncement has already had the effect of paralysing the mining industry, and throwing many thousands of men out of work. Although Australia is in a very difficult position as regards finance and trade, there is a general feeling that the difficulties are being faced and will bo overcome. The brighter side of the situation is that the national linances arc in a sound state and, on the whole well-managed. The Commonwealth and State Governments are pledged to economy in every possible way, the banks have adopted a consistently conservative policy, and are in a strong position, the trading houses have accumulated considerable reserves with which to meet their inevitable losses and not least, there are the almost boundless undeveloped re-

sources of the country which legitimately inspire n sturdy optimism and confidence in the future

The comment which has reached us on the subject of formulating action to . satisfy the prominent wants of Hokitika. has been uniformly favorable. ' The people are ready and willing to j help the Borough Council in any reasonable scheme which might be put forward. The citizens always took a pride in the fortunes of the town, and they are as ready as ever to cooperate if given the right lead. We again invite a public expression of opinion on the matter so as to afford the Council a practical clue as to what the people think should be done folthe town. They would like to see. we are persuaded, a municipal policy of progress put forward, and if the Council designed such a policy it would lie surprising how unanimous the backing would he. Much building is to go on in flic town in the. Now Year. New shops are to be erected, new dwellings built. In other directions public works building will lie in hand, and very important railway work will he undertaken. That all indicates confidence in the future of the place, and when public •mil private enterprise are thus being shown the local body might he expected to do its part also. The suggested works or matters for undertaking were neither complete nor final. At the best they but form the basis for the line of action we should like to see considered, the one desire being to see the essential matters affecting the progress of the town taken up in an earnest spirit. The Council has run nearly nine months of its first year of office, and it is not unreasonable to suggest that something tangible should he done to bring the municipality into a for forward state. This time next year the place will he inundated with East Coast visitors, brought here by the through .Midland railway service and the town requires to be put in order. The Council and the citizens should bestir themselves in good time so that Hokitika will he aide not only to live up to its reputation, but add further to its laurels.