VITAL CHANGES

Auckland Star, Volume LXXII, Issue 172, 23 July 1941, Page 3

VITAL CHANGES

COMMONWEALTH ECONOMY IMPORTANCE TO INVESTORS Two highly significant developments are I taking place in Australia under the influ- | <?nce ot war conditions, bringing change not only of intrinsic interest but also of outstanding importance to investors, states the "Sydney Stock Exchange Official Gazette." One is the rapid industrialisation of the community, which is placing secondary industries permanently in the toieiront of the wealth-producing capacity ot the Commonwealth, and the other the wide extension, designed as a temporary war measure, of Government control over nearly all forms of production, distribution and exchange. Whereas during the live years 1907 to I.UI manuiaetmei* represented onlv 22 per cent of the average total value of'production in Australia, and 2.V/4 per cent during the hve years immediately preceding the last war. for the five years 1923 to 1928 factory production represented 33.2 per cent of the wealth produced and T. 9.1 per cent dining the five years to 1039. Employment in factories has increased bv over 12VS per cent since the end of 19:59. and as the manufacturing industries in that \ ear contributed 42.1 per cent of the aggregate production it is sate to assume that the value of secondary products in the Com-1 mo lwealth is equal to all others taken: together. j The control of economic affairs in Australia by the Commonwealth Government, although designed as a temporary war measure, is of immediate i impor.ance to Investors. It has become necessary I in the national interest to bring coalmining, ship- I ping, oil distribution, motor vehicle production.and | import, and other important matters more or less Directly under official con'rol. but how far it will be required in the future to cause private Interests, whether individual or company, to be subordinated to pressing war needs is largely a matter for spec.ation. The Prime Minister, however, has mace it clear, not only that the whole field of company profits will be explored by a special allparty Parliamentary committee but also that civil'. production will be reviewed, to the end that all ; Plant, equipment and skilled labour available will I be diverted from non-essential industries to the I making of war and defence equipment. Factories' may be taken over or closed, wholly or in prut, ! the number of reserved occupations reduced, skilled labour transferred to workshops turning out w-ir equipment, and greater use made of women in business and industry generally. ♦,£? i1 d ,"i? tlo ?„ h 3 s yet been Brrv" en of the indusiu,. 1 5 I 4 cl ii. wUI *!■ afl ected. but it seems Inevitable that the position of a number of companies and organisations not directly contributing to the W , 3 .L„ i ort «'»> be chanijed. Somewhat similar Sk„ i l ,? 5 f lread y been taken In Great Britain. ;«?I£., ,he 'ndustries brought within the scope of restrictions were those connected with the manu--I™™?.?* cer . taln cotton and rayon goods, toilet preparations, toys, fountain pens, corsets cutle.v mo'dlUes 8 "*" hoslery and other "inor com- .