The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, MARCH 17, 1930. AUSTRALIAN CONDITIONS.

Hokitika Guardian, 17 March 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, MARCH 17, 1930. AUSTRALIAN CONDITIONS.

Writing l of Australian conditions more particularly in respect to the Jal« share dehaclo in some of the States, a writer in the “Otago Times ’ with an intimate knowledge of Commonwealth affairs, remarks that for many years New Zealand investors have given attention to Australian shares. For one reason a number of these investments were giving a higher return than New Zealand securities. Moreover, sound New Zealand companies shares were well held and difficult to procure. Australia is .a mighty continent with great possibilities, and huge strides have been made in its development in the Western and Northern States. In Western Australia sheep are largely displacing cattle, while nearer the coast agricultural farming is conducted on a large scale, particularly in wheat production. For years past the closer settlement of the land has given an impetus to the secondary industries. Companies hacked up with immense subscribed capita) were launched to fill the requirements of a rap-idly-increasing population. Thousands of miles of railways have been laid J down and equipped with rolling stock reaching from Adelaide to the Northern Territory and from Perth in Western Australia to Adelaide fiom there to Melbourne, and from the latter city through Victoria, New South Wales, and Queensland to Port Darwin. Those are main trunks with thousands of nidi’s of branch lines and feeders. Public highways, bridges, irrigation works, artrsionwe Us or bores, have all called for an immense quantity of material and the call has been met and mow' bv those companies referred to. When the share slump too place, New Zealand coiiiiimed to buy Australian shares, and according to a late press message, there is a difficulty in securing some of ilie deliveries. The inference is that .shares were sold on prospect,

and ihcie still may be a clearing up process to satisfy legitimate buyers, following the scare which seized many holders. It is now rather plain, as is being remarked in various quarters, - including the Auditor-General, that as the writer says, previous Governments created a fictitious standard of living -They were prodicai lie continues, in expenditure of loan money which in years of general prosperity' was easily burrowed until an external interest bill of £30,000,000 per annum lias to be met. The imports df Australia are monstrously high in comparison with her exports and considering that she could provide practically all her own requirements; hut tariffs arc fearsome subjects to deal with. It would lie so ’easy to create reciprocal tariffs against the sale of Australian exports. High wages and a short working week have been aimed at for years past and have in some industries been attained, particularly in coal mining, with what is proving disastrous results. Australia could not compete against the longer hours and lower costs of production ruling in other countries, and Australia was rapid®’ losing her coal trade Proposals were made for a reduction in miners’ wages and contract prices, and the Government agreed to a concession in haulage, but the miners refused to make any compromise and a strike followed which has lasted about a year. Australian industries are tremendously handicapped and the trade of the Commonwealth has in many directions been seriously impeded.i Meantime thousands of men are unemployed. The strikers are receiving sufficient from Government dole and from levies on others to keep them going. Mr Scullin. the Prime Minister, has had a torriffie task set him. His own supporters are the most difficult to negotiate with. There is ' a large majority of good fellows amongst those strikers but they are uufortmyitely dominated, threatened and led by a small number of their fellows, who do not care a straw whether Australia progress or becomes decadent and temporarily wrecked. Good Australians and unionists must rid themselves of these mischevotis rodents and get to,work with a will, support their own industries and. import as little as possible. Motor traction df all description is running iin competition with the peoples trams and railways. Why not increase the tax on petrol and imported “talkie” pictures? Pony racing and other such useless forms of sport should be severely curtailed. Such is the criticism from one on the spot, and it will be admitted in the light of all that has been disclosed, that there is a large amount of truth in the general statement. There is no doubt about the task which the Labour Government had to take up. Mr Stanley Bruce and his associates are well clear of the job, for that party must hear its share of the blame for a good deal of the general situation. Probably the party will discontinue any control over market prices for staple commodities, bid tjie evidence shows that the previous Governments were prodigal in their expenditure, and made no provision for difficult times. It appears to have been the custom to carry on the administration at the highest speed, and the consequence is there is now much general dislocation through the machinery being thrown out of gear. Mr "-milin and his ministry certainly deserve sympathy in the task courageously undertaken and in part in antagonism to some extreme members of their party. It is to be hoped they will have the courage and resource to rapidly improve the position by remodelling as thev must the whole system of ' te internal administration.