IN AUSTRALIA

Hokitika Guardian, 23 October 1931, Page 6

IN AUSTRALIA

TRADE POSITION, v SEASONAL CONDITIONS GOOD. In its monthly summary the National Rank of Australasia reviews the internal trade v p os 'tion of the Commonwealth as follows: C, The internal trade position, as a whole, shows no improvement since our last report, was published. Seasonal gains have been made by some set-tons of industry, but these are offset by further -slight downward movements affecting secondary industry and distribution. This condition is only what could be expected in view of the adverse conditions of affairs in Europe and the further decTne in overseas prices for our staple products, registered during the early part of September. The uprift in prices since Great Britain resolved to depart from the gold standard for a while has not yet affected any but the export industries. If these prices are maintained and are followed by a further substantial increase in the place "of wheat, making it a profitable crop to the average farmer, then some real improvement’ affecting all classes of the community, could be looked for. ft is extremely hard to escape the consequences of our past extravagant borrowing policy, which has made us liable for heavy interest payments both in Australia and overseas. That, policy was accompanied' by a great increase in the costs of Governments and the operation of various community services conducted by Governments ; also by large additions to the cost of various social benefits. Still, in some quarters, it is felt that an increase in the prices of wool and wheat could in itself be made the basis for a return to prosperity. This is a short-sighted view, and does_.not ...take into account —the accumulation of the burden which past errors have left upon the community. Neither does IT- admit that there - are still many reforms necessary, and that, no sound economic position can be attained until production costs, particularly those pertaining to secondary industries and distribution, have been further reduced, and until tile dead weight of unproductive debt has been substantially lessened. v Fortunately, seasonal -conditions throughout Australia are almost uniformly good. Some sections are experiencing trouble, but the areas thus affected are much smaller than normal. Outputs of all main commodities promise to reach large dimensions, and the recent increase in prices is a favourable factor.