SOUND PROSPERITY

Manawatu Standard, Volume LVIII, Issue 42, 18 January 1938, Page 9

SOUND PROSPERITY

CONDITIONS IN AUSTRALIA. ABSORPTION OF UNEMPLOYED. Per Press Association. AUCKLAND, Jan. 17. Tko general prosperity that i 6 at present ruling in Australia was commented upon by Sir Henry Gullett, a former Commonwealth Cabinet Minister, who arrived to-day on a holiday visit to, the Dominion, accompanied by Lady Gullett. Sir Henry said the country had experienced other boom years, such .as in 1926, 1927 and 1928, but to-day’s prosperity was soundly based on production. “Australia has never been so prosperous,” Sir Henry said. “This is due to the same conditions that you have enjoyed in New Zealand. We have hail a number of good seasons on the whole, and remarkably high prices have been obtained for all classes of primary products.” Results in the eastern States had not been , so satisfactory this season, and it had not been a first-class year for lambs, Sir Henry added. On the other hand, the wheat harvest had been good, and the present prices were highly profitable. The flourishing state of aff'airs applied alike to primary and secondary industries and to business generally. There was still some unemployment, but it was very close to normal, the figures being below thoie for 1928, which was a boom year. For children leaving school there were plenty of avenues of work open. Sir Henry pointed out that public works expenditure throughout Australia had been very heavily reduced, and was still falling. That was, he contended, the best indication of good times. So many workers were being absorbed by private enterprise with a consequent reduction in the unemployment figures that the necessity for expenditure on large public works wasdiminishing. Most States were certainly carrying fairly robust public works policies, but they were not abnormal.

Except for £2,000,000 obtained abroad last year, Australia had not borrowed a penny overseas since 1929.

Sir Henry said the £2.000,000 was part of £11,500,000 which the country was spending on defence this year, the total being the highest peace-time defence expenditui’e the country had ever known.