THE AUSTRALIAN CRISIS.

Press, Volume LXVI, Issue 20028, 9 September 1930, Page 11

THE AUSTRALIAN CRISIS.

TWO MAIN CAUSES. MR F. W. FREEMAN'S VIEWS. [TUB PRESS Special Service.] WELLINGTON', September 8. With facts and figures rather than generalities Mr F. W. Freeman, of Christehurch, president of the Canterbury Automobile Association, had some interesting light to shed on the present condition of Australia when he arrived by the Makura to-day. Retrenchment in various directions by firms and corporations, coupled with the heavy deficits which were being faced in many quarters, made the prospect in Australia far from pleasing. Mr Freeman left Auckland for Honolulu at the end of May. He spent a week in Japan, a week in Shanghai, and a few days in Hong-Kong. After brief visits to Manila, Singapore, and Java, he went round the coast of Australia from Darwin, and concluded his trip in Brisbane and Sydney. Most of the troubles in Australia, it was felt, originated in ill-considered and haphazard expenditure Unproductive Works. Over a comparatively recent period, said Mr Freeman, enormous sums had been spent on unproductive developments and in the provision of services that were economically unjustified. "The cure, of course, is to get back to work," Mr Freeman added. Labourers had been working a five-day week, he said, and had been expecting just the same rate as on a longer week. There were many signs of the times in Sydney. The Mosman Municipal Council decided on a drastic scheme of retrenchment in order to save £SOOO by the end of the year. Under this plan they proposed to reduce staff salaries by 8 1-8 per cent., and to dismiss a score of outside employees. The Sydney Harbour Trust had made alterations in the conduct of their affairs. Normally, said Mr Freeman, they employed 900 men in their works. Of these 200 were dispensed with recently, and at the end of last week 220 more were to go. They viewed the position so seriously that they were closing down the whole of the works temporarily and keeping on only the maintenance men. "Motor registrations have fallen off," Mr Freeman continued, "and many private owners are laying their cars by until the depression lifts. There were 647,500 motor vehicles of all kinds in Australia at Christmas, but since then the number has been reduced by 20,000. The effect of. this reduction in the use of motor vehicles is noticeable in the Sydney streets." Eailway Deficits. Mr Freeman remarked that the "wild political building" of Canberra, costing £12,000,000 or more, was making itself felt in the present lean times. The hotels there had lost £220,000 in a year's operations without taking into account the capital cost. There was a deficit of five millions in the New South Wales railways. As an example of the way in which money was being lost, he quoted the working figures for the line between Glenreagb and Dorrigo. This was a4O mile line, and the State spent £92,000 to earn £IO,OOO. The capital cost of this line had been £1,250,000. For the Booyong to Balliha line, opened last week, the interest and working costs would be about £'22,000. The Railway Commissioners estimated the annual earnings of the line at £3OOO. "However," said Mr Freeman, "the Australians have always been optimists. They realise their position and they are strong enough to call a halt and get their country back to normal. For my own part I have no doubt that they will be successful, and although things are bad, there's a silver lining." A QUICK RECOVERY. CONFIDENCE IN ENGLAND. [THS FSBSS Special Service.] AUCKLAND, September 8. "Many prominent men in England are confident that Australia will recover comparatively quickly from its present period of financial stringency | and industrial depression," said Mr i C. Brunsdon Fletcher, editoivin-chief of the "Sydney Morning Herald," who I is a through passenger to Sydney by I the Niagara, which arrived at Auck- . land from Vancouver to-night. Mr Fletcher was one of the Australian delegates to the Imperial Press Conference, held in London recently. ] "The conference, the first held w London since the inaugural' meeting, 21 years ago, was highi> successful,' ; Mr Fletcher said. "There was quite a general feeling that Australia would recover comparatively quickly from her present difficulties, particularly if every step weie taken to put her house in order. This seems quite reasonable. Australia lias had a wonderful season. There are more sheep in the country than ever before, there is promise or a wonderful wheat crop, and, in spite of all that has been said to the contrary, Australia still has money." WAGES AND UNEMPLOYMENT. (UNITED PBESS ASSOCIATION—BT ■ ELECTHIO TELEGRAPH—COPTKMHT.) MELBOURNE. September 8. It is believed that the Federal Government, in collaboration with the j bankers and leaders in industry, will take early steps to restore the value |of the pound sterling to something I like its real value, thus giving greater purchasing power to the reduced earnI lug capacity of the wage-earner. ' Tt is stated by prominent Cabinet I Ministers that any reduction of public 1 service salaries must be reflected throughout the community. The Government will not start relief works of any kind. Instead, industry will be assisted to absorb the unemployed by giving employers facilities, and possibly financial help to do so. It is nnlikelv that Parliament will meet until the first week in November. i .Referring to the present financial trouble, the Acting-Federal Treasurer (Mr J. A. Lyons) said: "We' are combing our extraneous items of expenditure with a finetoothed comb. The most ruthless course is being taken with a view to limiting waste, duplication, and all I that is not stnctlv essential is to go. The position is almost desperate, although not so desperate as to call for I despair." !