Untitled

Hokitika Guardian, 12 September 1927, Page 2

At ii time when the study of “business cycles” ail'd forecasts ol the commercial and industrial Inline engage a great deal of public attention special interest, attaches to the analysis of AusCra'linn liiumeinl conditions ,iust produced by Piot'essor Slianu, ol the West AV'stnilki University. “I he hcom of 1899,” at curding to Professor Sliann,

was due to a lomarUai'ile cctiihination of < anscs. of which the chief were rcihless speculation in land, o.er-bor-rt-wing and a long continued fall in the selling price of Australia’s staple cummodities. Professor Shaim admits Hull there is no immediate danger of such a general and sustained fall in prices as marked the period tST-l-IBbo. Hut he varus the people of Australia that disturbances in the world’s markets which nan he neither forsecn nor controlled may roll them in the near future of a large part of their re-

venue. As to inflated land values, rock less speculation, and extravagant expenditure by the State and local b dies, the analogy between 1899 and 1927 is remarkably (lose. But there is an event more exa: l | i|h |tobe > ibservod between 11 to two periods in regard to public borrowing, dust as in Up' “eighties” Hie speculators and spenders, finding that, the local fktifks had i ailed a. halt, plunged into the Linden ninnev market, so to-day Governments which find London reluctant and hard to deal with are turning to New York and borrowing freely there without any apparent regard for the ultimate consequences. The analogy that Professor Shaun has drawn I otween present-day (conditions ;vnd those that preceded the collapse of 1891-92 is painfully disconcerting, and the people of Australia and New Zealand will do well to heed his warnings.