A CRITICAL SITUATION.

Manawatu Herald, Volume XLIII, Issue 2277, 17 May 1921, Page 4

A CRITICAL SITUATION.

The meaning of the fall in prices of staple commodities was explained by the Prime Minister of Australia in a speech shortly before his departure for England. “I want the people to understand," said Mr Hughes, “that Australia is now confronted with problems that no amount of statesmanship nor of legislation can do anything to solve. Wo arc dealing with a world-wide trouble. There never was a time when it was more necessary to face the position in a businesslike way. Unless we can tide over until comparatively normal times; until the accumulated wool slocks have been disposed of; until the accumulated beef stocks have been sold; until the accumulated lead stocks have been absorbed; then the men on the land, and the men in the mines, and everybody else, will lie confronted with the position every day that they would be in danger of having their bank accounts closed down, and the whole country will be faced with a crisis, the like of which we have not seen in our time. I hope everyone will realise that the one essential of the people in times like this is stable government. JVe must look difficulties squarely in the face, and realise that.we are dealing not with normal, but with übnonnal conditions. Whatever might have been the problems created by high prices, it is obvious that, under the conditions of high prices., Australia enjoyed a period of prosperity during part of the war and since the armistice greater than she had done before; and it is easy to understand why Australia depends upon the sale of her primary products in the markets of the-world. When prices of these ui’e high, then there is an increase of prosperity for Australia. But now we are confronted with a fall in prices so rapid, of those things upon which Australia depends, as to threaten us with disaster. If this continues —if the decline of prices is not arrested —then not only will „ primary industries, particularly mining and agricultural industries, suffer, but there will follow a decline in the value of land. That would bring about both a financial and industrial crisis. No section of the comunity could hope to escape the consequences of such a

disaster. If this condition of affairs continues, then we shall have unemployment of such a nature as has not been seen in Australia for years. What Australians should pray for, therefore, is not that tendency toward low prices,- for that would spell min to a country that depends for prosperity upon high prices, but ra’tlier that the position will be so regulated as to enable us to adjust ourselves to the new conditions.”