AUSTRALIAN COMMERCE.

Press, Volume LXV, Issue 19735, 27 September 1929, Page 12

AUSTRALIAN COMMERCE.

TAXATION OF LUXURIES. j The August Summary of Australian j Conditions, published by the National Bank of Australasia, Ltd., makes sorue | interesting observations on trade and J financial conditions in the Commonwealth. The Federal Budget shows that revenue for the 1928-29 period — £61,420,000 —was £2,359,000 less than expenditure, making the accumulated deficit at the end of the financial year £4.988,000. Estimated revenue for 1929-30 is £64.198,000, which is expected to provide a surplus of £361,000. This surplus, plus a balance of £1,200,000 in the hands of the Public Trustee, is to be devoted to the reduction of the accumulated deficit, leaving £3,427,000 to be provided out of future Burpluses. The Treasurers expectation of revenue to be derived from Customs and Excise during the past year was unduly optimistic, and collections were £2,241,000 less than the Budget estimate. For the current year these items are expected to yield £43,750,000, or £2,691,000 above the amount obtained last year. To obtain this total, higher tariffs are being imposed on a number of luxury items, the intention being to avoid placing further burdens upon industry. An increase in the tax on amusements is expected to yield an additional £600,000, and by a super-tax, increasing by 10 per cent, the rate of income tax on individual taxable incomes exceeding £2OOO, and tightening up the law in other directions, an additional £159,000 is expected to be derived from income taxation. These increases are unwelcome, but it is clear that they are being placed where they are likely to have least adverse effect upon the cost of production. Expenditure for the year is expected to be £58,000 above last year's total. Loan expenditure is budgeted at £5,000,000, compared with actual expenditure, £7,600,000, last year. This reduction is welcomed in business circles, but it is widely thought that expenditure out of revenue should be substantially reduced, and that some, at last, of the items of loan expenditure could well be deferred until conditions generally are more favourable than at present. Trade generally continues dull, any improvement being restricted to seasonal requirements. Collections of trade accounts are slow, with many renewals of trade bills. Profits of manufacturers and traders show a downward tendency, and careful watch over expenditure is becoming more general. The improved seasonal prospects in New South Wales, Victoria, and South Australia have induced a more hopeful feeling in business circles, but it is felt that no marked improvement in trade generally can be expected until the wheat harvest and the pastoral position are more assured, and production in the coal mines in the Newcastle, N.S.W., district is resumed. The long stoppage there has affected production and costs in many industries, has led to heavy expense in bringing coal from overseas, and has a depressing effect on business apart from the economic losses it entails. The money market is well provided with funds for sound investments, though some tightening up is indicated by a slight falling-off in Stock Exchange prices for Government securities. Good industrial stocks continue in demand at the high price level of recent months. The wool sales for the current season opened in Adelaide early in September, with a strong demand at prices which indicate that the downward movement has been checked. It is that later sales will show a continuance of the favourable movement. RURAL CREDITS. EXTENSION OF FACILITIES. (PRESS ASSOCIATION TIUOBAX.) WELLINGTON, September 26. The monthly meeting of the Sural Intermediate Credits Board last month considered proposals submitted by the Commissioner, Mr Macdonald, for the introduction of a system to meet the needs of farmers, such as sheep farmers and those engaged in mixed farm-, ing, whose requirements fluctuate according to the various seasons of the year. Under the system outlined, provision would be made for approving limits proportionate to the value of the borrowers' live and dead stock, and, if neecssary, collateral security, up to which he would be entitled to receive advances as and when he required money to meet current outgoings. The proposals received the general approval of the Board in principle, but the members thought it desirable to submit them to the district Boards and the co-operative rural intermediate credit associations throughout the Dominion in order that they might be fully apprised of the system and have an opportunity of submitting suggestions as to the procedure necessary to put the proposals into effect. The various comments by the district Board members and the directors of the co-operative rural intermediate credit associations were considered by the Board at its meeting this week, and effect will be given to a number of the suggestions made. The extension of facilities is of particular interest in view of the proposal now under consideration to increase the maximum for individual loans to £2OOO. AUSTRALIAN MINING. BOW IT IS CRIPPLED. A Hobart advice says that Mr Hurray, general manager of the Mt. Lyell mines, speaking at Queenstown, said that the recent high price of copper had enabled the company to produce at a profit. The company was now in a position to face the future with confidence, provided the metal market was favourable. The cau6e of the previous depression was the amazing poeition voluntarily brought about in the Commonwealth in industrial affairs. However, that would be righted before long While other countries had made remarkable strides oince the war, Australia, Mr Murray said, had done everything, except think seriously and nationally. The conditions under which the mining industry was run prohibited successful operations except from high-grade ores, but if copper mining was to endure in Tasmania the low-grade ores must be treated. They would never be treated, however, unless the mining companies were unhamptred by ridiculous industrial laws and high coßts of essentials He looked upon the introduction of the Bill to repeal the Federal Arbitration Act as one of the most momentous happenings in the Commonwealth. It would be the first step towards emancipation from the intolerable position which had been built up. He keenly desired to see the general introduction of State wages boards. STUDHOLME STOCK SALE. There was a poor attendance at the Studholme stock sale on Wednesday, and a medium entry. The following prices were realised:— , Sheep—Four fat wethers at 38s, 4 at 335, 4 at 275, 4 fat ewes at 355, 68 ewes with ' lambs at 17« Id, 2 wethers at 225, 17 at 19s, 17 at 14s. Cattle —Fat steers £l4 ss, fat cows to £l6 10s, fat heifers to £lO, dairy caws to £0 1 12s M.