UNEMPLOYMENT IN AUSTRALIA.

Press, Volume LXIV, Issue 19356, 7 July 1928, Page 20

UNEMPLOYMENT IN AUSTRALIA.

MIGRATION NOT TO BLAME. PROFESSOR'S INVESTIGATIONS. (TOOK ODB OWH COBBESPONDENT.) SYDNEY, June 28. In New Zealand, as in Australia, migration has been freely blameu lor unemployment In fact, Aew Zealand went so far as to restrict migration in the hope that the position would be relieved, .according to i'roiessor D. 13. Copland, Dean of the i< acuity of Commerce at the Melbourne University, restriction ol migration is not a remedy for unemployment, for lie claims that there is little, if any, connexion between the two. In a special ..report prepared in conjunction with 'the Development and Migration Commission le supplies a graph showing the relationship between migration and unemployment in Australia during the last twenty years, which indicates that at times unemployment was low when migration was high, and that unemployment was high when migration was low. "What seems to emerge from a consideration of the question," he says, "ia that immigration is not a fundamental cause of unemployment, and that the flow of migration into a country will to a great extent automatically adjust itself into the economic conditions of the country." Professor Copland states that it is wrong, in his opinion, to think that there are only two stages through which a country passes, those of extreme prosperity and extreme depression. Fluctuations in employment ana unemployment are a definite indication of the existence of the business cycle, but it is extremely difficult to make people realise this. He quotes as an example the constant endeavour to explain periods of unemployment by some concrete cause of the moment as for instance, the explanation of the post-war unemployment, a3 the result of war-time disorganisation and the burden of ananee The recent crisis in Australia, he says, has been attributed to such explanations as overimporting, high taxation, and the bad season. It is not recognised that sucti periods of unemployment recur at frequent intervals in all countries, old and new, agricultural and manufacturing. The less complex the economic structure of the country, he says, the les severe, usually, is the .crisis of unemployment. Commenting on the relationship between importing and prosperity, he says that active importing is often continued too long after conditions warrant, and over-trading characterises the breaking of a period 'of good business. Contrary to the general belief, Wofeasor Copland does not regard weather conditions as the only causes or changes in Australia's business prosperity. While it is obvious that good harvests encourage trading activities, and that bad seasons will contract the volume of business, there are other factors'exercising a dominating influence at times. Depressions do not always coincide with -bad seasons, nor does prosperity with good ones. He points out that rapid falls in prices always have been accompanied by increases in unemployment, and that rises in prices have almost invariably been accompanied by marked reductions in unemployment* It is highly probable, he states, seasons have a more serious influence on Australia than on older countries. Primary products fluctuate more violently than secondary ones, and the burden of Australia's debt is greatly increased by a fall in prices, and equally greatly decreased by a rise in prices. Professor Copland sayß that it is important that measures should be taken to check an undue expansion of imports, unless exports are expanding or some other source available for repjeniahing banking funds in London. That could best be done by a more rapid adjustment. of credit conditions in Australia to changes in the balance of payments. For this purpose he recommends thatf the Commonwealth Bank should extend its functions as a central exchange bank, and thus control banking .credit according to trade conditions. Other recommendations for controlling unemployment included in the report deal with business management. The first condition of success, it is said, is the greater recognition on the part of business men that the periodio fluctuations in business, known as the trade cycle, exist. It would then be possible to plan building and construction works, and purchasing and selling policy, according to the state ,of business. Thus, heavy construction work would not be undertaken when business conditions were very active. With the existing system active business conditions are intensified, and when depression sets in the '" expansion -of the manufacturing plant involves serious economic loss. It would be wiser to enter upon the construction programme during the depression, thus alleviating bad trading conditions. In that way stability would be promoted, and the volume ol unemployment lessened. Professor Copland says that at present Australia is passing through, a period of mild depression which was oreceded bv active business conditions over tbe whole of 1926. He prophesies that it -will be followed eventually by a oeriod of recovery, probably de- ' veloping into active and even boom conditions.