The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, SEPTEMBER 27, 1930. THE LONE FURROW.

Hokitika Guardian, 27 September 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, SEPTEMBER 27, 1930. THE LONE FURROW.

Although the Rt. Hon. W. M. Hughes is at the • head of the Australian Party in the present political campaign in New South' Wales, his following is a restricted one. About a dozen candidates are rallying to his banner, but even if all were retnnied, the number in a House of ninety ( members would 1 be only fractional. Mr Hughes may therefore be considered as ploughing politically a lone furrow, Blit there'■ ife iio ddubt aiboilt Ills vigOr iiiitl eiltiniSmsm, In his policy speech On Wednesday night he Spdke ioilg alid etoquciitly in the development of his policy and'bin review of the Australian situation. He discussed the plight of the Commonwealth as a whole rather than the fate of the State of New South Walee. He had a very cordial 'hearing and his quips were received with rounds of applause. A very flattering ovation was accorded him at the close of his spirited address, and thanks and confidence were accorded with equal favour. Mr Hughes had previously made his views clear regarding in particular the mission of Sir Otto Niemeyer. In a pamphlet “Bond of Free.’’ he had denounced the proposals to tie up financially the future of Australia on the lines, proposed to conform with the requirements of the visting financial representative. That expression had already called down on Mr Hughes’ head a good deal of wrath, not only in Australia, but also in England. However, from the hustings he held to his views. He was definite in his opposition to the cutting down of wages. His argument was that reduced wages meant decreased spending power, and contingent additional stringency. He overlooked the point that decreased wages have been suggested as a basic means to reduce the cost of production, so that with Hie drop in prices, reduced wages will buy as much as high wages did, and probably more for the reason that cheaper production will induce greater consumption and enlarged employment. No reduction in wages that is likely to occui, is deemed possible of affecting the standard of living. Slave wages are not probable, and there has been no attempt in that direction. Mr Hughes was right in' standing up for the maintenance of the principal of ai J bi-, trntion as a Safeguard between employer and employee, but all decisions under arbitration must lie respected as with the force of law, which they really carry. What has brought the system mto disrepute is the fact that labour flouts the arbitration decisions when they arc not considered acceptable, and if the law is not to be uniform. then it is desirable that it should l>e repealed. Mr Hughes made hh point well as to the stability of Avstralia, both by its trading and banking records. Despite slump times, the value of the products stood ,lik : li and the thanking institutions continued to pay substantial dividends to shareholders. As regards the internal economy of banking, lie advocated the mobilisation ■ of credits to assist enterprise, but that would tie a rash act excepting under proper control and management. Credit depends on cover, and the possibility of return for the capital involved, and Hint must be left to the banker to decide on the merits of the a,p* plications for advances. The layman may not butt in on such a delicate issue without the liability of playing ducks and drakes with the mobilised funds. Australians will agree with Mr Hughes that taxation should be.

reduced, but it is essential .for the credit of, the country to provide the requisite income to ensure solvency in the meantime. Australia has overborrowed in relation te the ability to pay out of the product of the borrowed millions, and the liability is on the people to make good the shortage. Finance is a very delicate business, and the country which i,s not in a position to meet its obligations encounters a very difficult period. Once there is a check due to difficulty in payments, the effect is felt in other directions, and in unexpected ways the country has to face a difficult position. Certainly Australia mitfst practice economies, and the suggestion to revise the expensively run constitution by abolishing State Governors. and Agents-General, and State Legislative Councils, as well a,s reducing the number of members in th<o State Assemblies, as mentioned by Mr Hughes, found instant favour. It would l>e, of course, a very bold stroke, but Australia must lie realising that with its State and Federal systems overlapping so much, there is an enormous wastage year after year. This, however, cannot he brought about a, simple statement of policy. There will be a good way to go before the suggestion can be brought to pass, so that the idea does not give that immediate succour which the pressing demands of Australia really require, Ml* Hughes’ address had all tllO inspiration necessary to please the aspirations of every good Australian. He . unfolded a world-picture of great possibilities under sane and sensible government, and was ovutioned accordingly. But deeds ure required now, and inspiring though much of hi|<s address was, it. will not lift Australia .far along the course it must travel this year. Tire best ipolicy which appears to be offered at this juncture is that of Mr Bavin, who, if late in the day, has recognised the true position, and is prepared to apply the political remedies along the line proposed by the financial experts. It appears to be the only way for Australia, to emerge triumphantly from the present financial morass.