The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, FEBRUARY 24, 1930. AUSTRALIAN FINANCE.

Hokitika Guardian, 24 February 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, FEBRUARY 24, 1930. AUSTRALIAN FINANCE.

I an Federal and State Premiers are in conclave respecting national matters, but in particular with regard to finance. 'J here are several pressing matters at the moment, but chief of ajl is finance. Air Scullin reviewed the position as favourably as lie could at the opening of the conference, and then the meeting resolved into committee to deal with the special subject for consideration. Australia has borrowed heavily and was disposed to go on borrowing as long as tbe London market would help. But there lias been a check. The States have been credited generally with a disposition towards reckless public expenditure. Time and again New Zealand lias appeared to better advantage 011 the loan market because the balance-sheet put forward respecting past expenditure of borrowed money was always more attractive. Australia is going to feel the fall in wool prices seriously. The drop is substantial and off the huge clip Australia can export big figures are involved. Tt is of course a marvellous position tbe the way Australia survives notwithstanding the constant occurrence of strikes and labour troubles. Tn New South Wales at tbe present, tbe situation is very grave. There is a vast army of unemployed on top of those who refuse to go to work. Tbe economic outcome of such a situation can lie none other than disastrous. New South Wales once enjoyed a great trade with coal. Tt is now almost negligble. There was a time when it was one of the cheapest commodities in the State. Now it is the clearest coal in the world—if it can be bought. This dislocation of a great industry lias caused great loss all round, and makes the outlook- very unpromising. Air Scullin is hopeful of good returns from agricultural and pastoral pur-

suits, following the recent seasonal rains, and tie' will not be disappointed most probably, but there is a considerable amount of leeway to make up, particularly if the coal crisis continues to drag on indefinitely. The Prime Minister has suggested economies in adninistration, and they will be helpful, nd according to some earlier accounts, overdue. The ' Premiers thought, apparently not without reason, that there was a need to restore confidence at Home; and accordingly proceeded to discuss details in camera. One im-t mediate relief would be an adjustment' of the labour troubles, and some guarantee of stable conditions thereafter. Australia would enjoy relief from such a step quicker than by any other means, and the situation calls for definite action. The Australian money market shows some improvement, which is encouraging, as indicative of internal feeling, and if the present conference moves along right lines good effect should result in the financial standing of the Commonwealth. The general attitude of Mr bcullin in declining to he directed by Australian Labour Party has shown that he has respect for constitutional rights.- Mr Theodore, too, has taken up an attitude which indicates the dictates of the Labour machine are of 110 effect when national interests are affected. This general attitude will have a good effect outside the Commonwealth, for there is always the fear that Labour in office will be subjected to. the whims and extravagant theories ol the Labour caueps, which so often includes irresponsible members with a desire for wrecking ordered government. That is tlie main element which Labour has to live down in its parliamentary career. The British Labour Party in office is doing much towards, that end, and now the Federal Labour Party is following in the footsteps of its greater example. These are factors which will count in the general disposition towards Labour in office in Australia, and the financial situation of the Commonwealth generally.