AUSTRALIA’S DIFFICULTIES

Sun (Auckland), Volume III, Issue 920, 13 March 1930, Page 10

AUSTRALIA’S DIFFICULTIES

AT the same time as Australia is facing an acute financial crisis, and suffering an unparalleled blow to her prestige through the restrictions on credit arrangements overseas, a German bank has, with what might seem almost a premeditated irony, issued a report of world economic forces in which Australia is placed third among the nations according to wealth, per capita, of population. The statistician has omitted to mention that, while Australia in this respect may be third, she is actually second among the nations in degree of taxation according to population, while worse still she is the first of front-rank nations to have had her securities declared black by overseas bankers. Some of the factors which have brought about this unsatisfactory and regrettable position have been reviewed by the Federal Prime Minister, Mr. J. H. Scullin, in an appeal to all sections of the Australian public to co-operate hr an effort to improve the Commonwealth’s position. Staggering figures quoted by Mr. Scullin show plainly how the country, with a heavy excess of imports over exports, and a mounting interest bill to meet overseas,’ has moved toward disaster. In the six years ended June 30, 1929, imports exceeded exports by £42.000,000, and in the same period the Government’s payments overseas for interest and other services in respect of loans amounted to £193,000,000. Obviously such a movement could not continue indefinitely, and though the present situation may be humiliating to Australia’s pride, it will probably prove in the long run to have been a beneficial if salutary tonic. Among the emergency measures projected by the Federal Government to rectify the situation is a special primage levy of almost unexampled severity. Directed principally against luxury imports, this may stimulate development of Australian industries, some of which have experienced difficult times through intense competition and a depressing sequence of labour troubles. It is unfortunate that, while the Federal Government should in one direction be contriving measures to benefit industry, another of its proposals, the plan to create a comprehensive system of social insurance, principally to cover unemployment, may simply prove a burden. While excessive importations have a good deal to do with Australia’s present position, labour troubles are equally responsible, and more thait any further cosseting is required a period of steady industry and freedom from strikes.