AUSTRALIA TO-DAY.

Taranaki Daily News, 22 December 1922, Page 5

AUSTRALIA TO-DAY.

HIGH WAGES PROBLEM.

PUBLIC FINANCE SOUND. POPULATION QUESTION. By Telegraph.—Press Assn. —Copyright. London. Dec. 18. The Board ot Trade lias published Mr. MacGregor’s report on the economic and financial situation of Australia to October, dealing exhaustively with exports, imports, manufactures and industries.

Mr. MacGregor says the outlook in Australia is not altogether reassuring. One of the great problems, namely the adjustment of wages to enable industries as a whole to be carried on, has not yet been solved. Australia to-day presents the anomaly of a great foodproducing country, offering illimitable work of all kinds for developmental purposes, and at the same time many thousands of men are out of employment, who might be usefully at work but for the difficulty regarding wages. Tt is presumed that the impasse will adjust itself eventually, but meantime both employers and employees are suffering considerable losses and there is no encouragement for Australian or British interests to proceed with the industrial development of the country. Undoubtedly the generous distribution of war gratuities, repatriation, war service homes and 'war pensions during the past few years has to some extent obscured the true economic position and rendered the payment of high wages an easy matter. This distribution is approaching or has reached its end. PRODUCE PRICES DOWN. But the freedom with which money has been circulating during the last I few years has been partly caused by the high prices realised for exported ' produce. This necessarily makes it difficult for the workers and the people generally to come down to the stern realities of normal production and distribution. particularly while the cost of living is still comparatively high. Fortunately there has been a run of good seasons. But a bad season or a drought is bound to come before long. There is better provision to-day than ever before against the disastrous effects of a had season, but should one occur the financial effects on primary producers, subject as they are to comparatively heavy taxation, might be very serious indeed.

Export produce prices generally have materially declined, and it will require a compensating expansion in volume to maintain the favorable balance of trade necessary to meet Australia’s overseas obligations, estimated at 25 millions a year.

Public finances in Australia are in a sound condition although having regard to the high taxation they are based to some extent on the continuance iof good seasons. There is an insistent clamor for Government economy Jn

expenditure, but it is not easy to point out where any great savings can be effected. On the other hand a young and growing country must have money for development, and it appears there is no objection to fresh borrowings, provided capital and labor pull together and enable the money to be spent efficiently on really reproductive works. TWO DIFFICULT PROBLEMS. The question of immigration has reached a stage at which little further progress can be made or any considerable loans legitimately raised for development purposes without a corresponding increase in population. The problem of immigration and land settlement, is full of difficulties, only capable of solution if dealt with on the widest and broadest lines coupled with due consideration for secondary industries. It would appear that the principle of the solution of the immigration problem lies in developing manufacturing or secondary industries. The number ol persons living on land in Australia engaged in primary production is about 500,000 or 600,000.

Any increase in the population by a million would therefore appear to depend on the development of manufacturing industries. accompanied by scientific land settlement. The further development of both the primary and secondary industries is bound up with immigration. As normally there are practically no unemployed nor idle people in Australia no further appreciable industrial development can take place without a corresponding increase in the population.