EMPHASIS ON PRODUCTION

Waikato Times, Volume 125, Issue 20910, 15 September 1939, Page 6

EMPHASIS ON PRODUCTION

Australia expects a “minor boom” in her industries as the result of extensive purchases by Britain of supplies for war purposes. Purchase prices have not yet been announced, and there is no intention of driving a hard bargain with Britain, but even a moderate rise in prices and an assured market for the whole output would give great relief to Australian industries, especially those engaged in primary production. Wool and wheat growers particularly were facing a rather dreary prospect for the present production season. The altered situation is expected to result in an added income of perhaps £15,000,000 for the primary industries, from which will have to be deducted increased costs of production. Increased production has assumed greater importance than ever, and to ensure that greater output it is certain that some advance in prices will be necessary. Before the war began the low prices of primary commodities inevitably resulted in a slackening of production, and a continuation of that process would be doubly disastrous at the present time. Consumable goods and other essential supplies may yet play a most important part in the decision of the war, and Australia and New Zealand can make a telling contribution to the success of Allied arms by ensuring that ample supplies will be forthcoming. It may be questioned whether, in view of the surplus of production before the war, there will still not be more than ample for all purposes. But it must be remembered that millions of men arc being withdrawn from the productive industries in all countries, if not to engage in active warfare, then to man the defences. All the combatant countries will place in store all the supplies they can purchase and accommodate against any possible shortage later. It must also be assumed, that the German submarine campaign will result in the loss of large quantities of supplies. For all these reasons it is certain there will be a heavy demand for primary products, which may be limited only by the available shipping tonnage. In this connection it is interesting to note that American shipping concerns are placing orders for the construction of a large amount of tonnage. -