The Outlook in Australia

Hokitika Guardian, 23 December 1922, Page 3

The Outlook in Australia

ECONOMIC AND FINANCIAL SITUATION, PROBLEMS TO BE FACED. LONDON, Dec 18. The Board of Trade has published the report of Mr S. W. B. McGregor, senior British Trade Commissioner in Australia, on tlie economic and financial situation in Australia up to October last, dealing exhaustively with exports ,imports, manufactures, and industries. Mr McGregor says the outlook in Australia is not altogether reassuring. None of the great problems, including the adjustment ot wages to enable industries as a whole to bo carried on., lias yet been solved. Australia to-day presents the anomaly of a great food-producing country oiler ing illimitable work of all kinds for developmental purposes, while at the same time many thousands of men are

wages to enuDie ministries as a to bo carried on, lias yet been solved. Australia to-day presents the anomql.v of a great food-producing country offer ing illimitable work of all kinds for developmental purposes, while at the same time many thousands of men are out of employment who might he usefully at work hut for the difficulty recarding wages. It is presumed that the impasse will adjust itself eventually. hut in the meantime both employers and employees are suffering considerable losses, and there, is no encouragement for Australian or British interests to proceed with the industrial development of the country. FINANCIAL PROBLEM. Undoubtedly the generous distribute .a of war gratuities, reparation omuls. war service homes and war pensions during the past lew years has to some extent obscured Hie true economic mention and rendered the payment of high wages an easy matter. This distribution is approaching, or has reached, an end. The freedom with which money has been circulating during the last few years, partly caused by the high prices realised tor exported produce, necessarily makes it difficult for workers and the people generally to come down to the stern realities'of normal production and distribution, particularly while the cost of living is still comparatively high. Fortunately, there has been a run of good seasons, hut a had season ot drought is hound to come before long. There is better provision to-dav than ever before against the disastrous effects of had seasons, hut should such occur .the financial effect on primary producers, subject as they arc to comparatively heavy taxation, might ho very serious indeed. Export produce prices have materially decreased, anil it will require a compensating expansion in volume to maintain the favourable balance of trade necessary to meet Australia’s oversea obligations, wim-n are esimated at CtJuJXXI.OOO a vc.iiThe public finances of Australia arc in a sound condition, although, having regard to the high taxation, they are : based to some extent on the coiitinuanco of good seasons. There is an m-; sistent clamour for Goverment economy in expenditure, but it is not easy to. point out where any great savings can he effected. On the other hand, a young, growing country must luue money for development and it appears that there is no objection to fresh borrowing. providing Capital and l.ahoui pull together, and enable money to 1; spent efficiently mi really reproductive works. i THE IMMIGRATION QUESTION i

The question of immigration lias : reached a stage at which little further j progress can he made or any consider- l able loans legitimately raised for de-j velopment purposes without a corn's- j ponding increase in the population. J The problem of immigral ion and land settlement is full of (lifiicttltitis, and is j only capable ill solution if dealt with j on the widest and broadest lines, j coupled with due consideration for the j secondary industries. If would appear, that the principle of a solution of the ! immigration problem lies in develop- I ing manufacturing or secondary in- > dustries. ! The number of persons living on the j land in' Australia and engaged in pri- | niar.v production is about oOO.OtKI or j GOO,boo. Any increase in the popula- | tion by millions would therefore appear | to depend oil the development ol inaiiu- j factoring industries, accompanied by ! scientific land .settlement. Further development of both pri-j mary and secondary industries is bctind | up with iminigrnltio'ii. As normally | there are practically no unemployed j nor idle people in Australia, no further j appreciable industrial development can j take place without a corresponding in- { crease in population. :