NO IMPROVEMENT YET.

Auckland Star, 2 January 1931, Page 4

NO IMPROVEMENT YET.

CONDITIONS IN AUSTRALIA.

PROMINENT BANK'S VIEWS,

INFLUENCE OF POLITICIANS

'•Our difficulties, due. to extravagant spending in the past, excessive borrowing and payment of wages at an unecouoinically high standard, and more recently the'fall in prices, would constitute a quite sufficient problem for solution even if the leaders of production, trade and linance in Australia were given adequate assistance by legislative bodies toward preparing the way for future progress," >ays the monthly journal of the National Bank of Australasia. Ltd. The publication gives a summary of Australian conditions.

'•There are no indications of improvement in the general outlook. Wholesale and retail trade continue dull, with hand-to-mouth purchasing the general practice. Secondary industries are quiet, excepting' a few whose activities have been stimulated by a demand for Christmas goods. Luxury trades and distribution of luxury goods are particularly dull, while collection of book debts is slow and difficult. The decline in prices of wool, wheat and butter, upon the sale of which Australia depends so largely for meeting its oversea obligations, appears to have been checked, but a marked increase is necessary to make their production profitable to the general run of farmers and graziers.

'•Legislators Have Failed." ''Notwithstanding a substantial reduction in the national income, which is indicated by the above statement, our legislators have signally failed to make corresponding adjustments in the total of governmental expenditure, and they have also failed to assist industry to reorganise its operations by repealing legislation whereby industry is restricted in so many directions, including payment of fixed wage rates, based upon the cost of living, and not upon the capacity of the industry to pay them. Private individuals and trading corporations have made substantial adjustments in their -operations and > expenditures with a view to meeting the change in conditions which has accompanied the fall in prices and the coincident industrial depression. Willingly or unwillingly, the owners of property have suffered heavy losses of principal and interest, as,japart from the depreciation of values of commodities, real estate and stocks and shares, there must have been a fairly large wastage of capital during the past.two years.

Private Finance Meddled With. "But the most unsettling activity of 'the extreme left' group of politicians is connected with the control of private finance. This group has, for many years past, exerted a continual pressure, either direct or indirect, upon Governments, tending toward the increase of expenditures, and consequently toward unsound finance, with results which now,have to be overcome. Heedless of the troubles which their policies have induced, they are strongly advocating - the establishment of a central bank, which shall have control over the financial, institutions of Australia, thus placing the banks completely under the dictation of the dominant political group. They clamour for huge inflations of the note issue; they wished to postpone repayment or conversion of the loan which matured on December 15; they want the Commonwealth Bank to make loans to the Government regardless of the ability of the bank to do so, excepting by the process of inflation." This policy, the journal says, has brought great hardships and misery on the working classes of those countries in which, it has been tried.