AUSTRALIA'S ILLS.

Auckland Star, Volume LXII, Issue 103, 4 May 1931, Page 7

AUSTRALIA'S ILLS.

EXPERT DIAGNOSIS. Economic and Industrial Survey, i "TIMES" SPECIAL ISSUE. ,onited P.A.— Electric Telegraph—Copyright) I __ (Received 10.30 a.m.) LONDON, May 3. A financial supplement of "The Times," dealing specially with the Australian situation, surveys fully the economic and industrial conditions. The managing editor of the " Financial Times," Mr. R. J. Barrett, emphasises the need of a young country to tell the, world how it actually stands in order to correct misgivings and misapprehensions. Britain has not forgotten Australia's war-time sacrifices, nor the crippling financial obligations incurred therein.

It is ridiculous in the face of Australia's remarkable development and achievements to treat this passing phase of economic stress as symptomatic of decay. Australia is really in the flush of vigorous youth, and has natural advantages and potentialities unsurpassed in the world. Paradoxically Sir Granville Eyrie's foreword gives the actual explanation of the present crisis, with an outline of remedial measures, whereas Mr. Scullin's one page article is virtually without policy and merely recites Australia's resources, .finally claiming that while Britain's debt is almost entirely deadweight, arising from the war, only onethird of Australia's debt is associated with the war, the remainder being represented by assets contributing to the payment of interest on debt.

Mr. Scullin's closing paragraph, ends on a reflective note. "Perhaps we might have done better," he etates. "If the whole world spoke honestly of its endeavours would not the answer be the same? What would we not all give to undo yesterday's mistakes V

Professor D. B. Copland, Professor of Commerce, Melbourne University, examining, the factors underlying the crisis, points out the disparity between wholesale prices; which have fallen only 18 per cent, and export prices, Avhich are 50 per cent lower.- He- argues that the Joss of income, which is now mainly falling on the producers, must be spread evenly over the community.

He also expresses the opinion that if the Governments devise a three-year rehabilitation plan confidence will follow and the. fall in costs from the reduction of wages will provide a basis for economic recovery. .

Mr. A. C. Davidson, general manager of the Bank of- New South. Wales, declares ' that given good -' seasons, a termination of the decline in prices and Budget equilibrium should be possible by June, 1932, paving the way for a reduction of internal interest rates and extension of credit to assist primary industries by the raising of a loan temporarily to finance export.

"Then,"'he adds, "we shall look to Britain to contribute by funding the floating debt say at the rate of £10,000,000 or £12,000,000 each half year."' It is noteworthy that Mr. Lang is not jmony the Premiers , who have contributed articles. BULLET AT TRAIN. N.S.W. POLITICIANS ABOARD. ~ (Received 11.30 a.m.) SYDNEY,, this day. A bullet smashed a window of a train travelling through Macdonaldtow» last night. The missile splintered the glass a few inches from, where- Mr. Farley, M.L.C., /was sitting. In the next compartment was Mr. T. B. Bavin, Leader of the State Nationalist party. Both police and Parliamentarians scotffc the idea that the bullet was intended for these travellere.