WELLINGTON NEWS

Hokitika Guardian, 1 November 1930, Page 2

WELLINGTON NEWS

POLITICS AND PANICS. (Special Correspondent.) WELLINGTON, Oct. 39 It is a question whether the success of the Labour Party in New South Wales warrants so much panic as is being displayed. It may be true that Mr J. T. Lang lias secured power through promising the workers that lie would establish a sort of economic paradise, in which their standard of living would not only not be attacked but greatly improved. Who can blame the thoughtless majority of the workers if they were allured by such glowing but futile promises. For good or ill Laboui is in control of the political machinery in the Commonwealth, in New South Wales Victoria and iSouth Australia, blit whatever huge (promises may have been made by the Labour leaders those promises cannot be fulfilled without money. New South Wales cannot borrow internally because the Lonn Council, which is composed of the principal political representative* of all the States and the Commonwealth, can put a stop to that, in any case there is very little loose money in Australia, and what is available will be needed for meeting overseas commitments for interest and to pay ofi short term loans.

Under the terms of the Melbourne Conference agreement the States are pledged not to borrow in the overseas market* for a time, to balance Bud. gats .nnd to publish monthly statements showing the position, Sir Otto Ntemeyep had nothing to do with the making of this agreement. D was maVe by the Premiers present after hearing Sir Otto nnd an analysis of the economic conditions of Australia. His analysis was very searching and his statement was ft plain one. This agreement is disliked by the Labour factions, who insist upon the agreement being repudiated, a moratorium declared and the war debts abandoned

These reactionary resolutions were telegraphed to Mr Seullin in London, and the latter has been making strenuous efforts to convince London financiers that the •Commonwealth will honour all its obligations. Mr Fenton, the Acting-Prime Minister, and 31 r Lyons, the Treasurer, are together endeavouring to play a square game, but the Caucus appears to he too strong for them and anything may happen. It is not the probable action of the Premier that ifl to be feared but the action of the irresponsible Junta known as the Labour Caucus. The economic conditions in Apstralia must become worse, and her recovery will he postponed for some time. However, nothing much can be done without money, and money is not procurable. It is the repudiation of debts and the moratorium that is scaring people, AMERICAN STATISTICS.

The Americans are generally very optimistic, but they usually go to extremes. Recognising the wide tendency in the U.S. to exaggerate unfavouralble news, a New York Trust Company has made a survey of the Industrial situation, nnd .points out that with 7 per cent of the world’s population the U.S. consumes 48 per cent of the world's coffee production, 53 per cent of its tin, 66 per dent of its rubber, 21 per cent of its sugar, 72 per cent of its Bilk, 36 per cent of its coal, 42 per cent of its pig iron, 47 per cent of its copper, 69 per cent of it serude petroleum and 23 millions of 30 millions of running motor cars. Tt operates 60 per cent of the world’s telegraph and telephone facilities, 33 per cent of the world’s railroads, and produces and consumes more than 35 per cent of the world s total electric power, This nation embraces 6 per cent of the world s area, but it produces 70 per cent of all oil, 60 per cent of wheat and cotton, 50 per cent of copper and pig iron and 40 per cent of the lead and coal output of the globe. It holds abont one-half of the world’s monetary gold and two-thirds of the total banking resources of the world, while its population was increasing 60 per cent, its industrial production increased 300 per cent.

The purchasing power of its 120,000,000 citizens is greater than that of 500,000,000 Europeans, and is much greater than that of more than 1,000,000,000 Asiatics. All this may be true, but the fact remains that America is suffering frum a big, slump, as big a slump as any other part of the world. Wages are falling in the United States ’because profits are declining, and it has been stated on fairly good authority that the United States fiscal year will end with a very big deficit.