AUSTRALIA TO-DAY

Evening Post, Volume LXXXVIII, Issue 102, 27 October 1914, Page 8

AUSTRALIA TO-DAY

WAR AND TRADE DEVELOPING EXISTING , INDUSTRIES AN INTERNATIONAL OPPORTUNITY. , ¦ (MOM OUR OWN CORRESPONDENT.) 1 SYDNEY, 23rd October. In the absence of news of decisive events in connection with the desperate fighting in Europe Opportunity exists for the more attentive consideration of the financial and trade aspects of the war. General discussion of these aspects has been 'entered upon, mainly on the question of how we can best develop existing industries and start new ones, to the lasting trade loss of our present enemies and to the permanent advantage of Australia. It has to be admitted that this seems to be rather more thought of than the broader question of new reciprocal trade relations with other parts of the British Empire for the mutual shutting out of Germany and Austria from British markets. When attention has been drawn to this disposition to think and propose on local Australian lines, it has been pointed out in reply that it is best to begin with what lies nearest to, hand, and that it will be an immense gain to the whole Empire if we do here all that we can to build up in* dustries which will support a much greater population in this important outpost, and at the same time help to put up a strong trade check on the countries which are now at war with us. From all sides the Federal Parliament is being urged to lose no time in revising the tariff in accordance with the position disclosed by the war. Such urgings are coming froni unexpected quarters. Considerable comment has been caused by a complete change in tone on the fiscal question on the part of the Sydney Horning Herald, one of the biggest of our newspapers. Up to the present the Herald has shown itself uncompromising in opposition to tariff restrictions on trade. It now sees good reason for insisting that the present is a convenient time for the encouragement of local industries at the expense of Our enemies. Federal Ministers say that they will act quickly enough in the desired direction, but they are meeting with rebukes on account of an apparent inclination to givo* first place to a revival of the hitherto fruitless attempts on the part of the Labour Party to disturb existing industrial and economic conditions by greatly extending the powers of the Commonwealth and reducing the powers of the States WOOL SALES. Sales begun at Sydney this week are, with the exception of some small sales at Adelaide last week, the first offerings at auction to the world's buyers of the products of one of our most 'important staple industries since the outbreak of the war. But all the world is, not invited to buy now. The selling brokers announce that the auctioneers will only accept the bids of a buyer on the express condition that the buyer is not acting on behalf of a principal in Germany or Austria, and the auctioneers reserve to themselves the right to cancel any purchase made in violation of this condition. In past normal times European buyers have purchased the bulk of the Australian wool. British buyers are now foremost, and Japan is buying heavily. There has been a good deal of speculation as to the increased extent to which purchases for America would reflect tho readiness of the keen business men of the United States to take advantage of an international opportunity. However, the classes of wool so far offered are not of the kind which the Americans mostly seek, and consequently we cannot yel estimate their plans in this connection. Habitues of the snlcs missed the faces of many erstwhile prominent Continental buyeis. Some of them are at the front. In the rearrangement of seats in the sale-room places are being kept for the missing Belgian and French representatives, whose countries are not able at present to give attention to the woollen

industry. Altogether the sales have thus far proved satisfactory, and tho renewal of the successful disposal of the primary products upon which we »o largely depend has helped consideiably towards the " maintenance of a confident spirit in the trading community. THE FINANCIAL STRAIN. This is the time of Budget statement* by the Australian Treasurers, and the taxpayer is this year particularly i&terested because of the anticipated demands by the Treasurers of the various States, as well as the Commonwealth, for more taxation to meet tho financial strain of the war. When, at an early stage, the West Australian Government suddenly launched a war income tax ranging from 10 per cent, upwards, Australian taxpayers generally were made somewhat apprehensive. As far as the largest State, New South Wales, is concerned, we now have some certainty concerning the proposed addititional burden. The Premier and Treasurer announced in his Budget address on Wednesday night that to meet the v present difficulty it is intended to impose a temporary super-tax of 3d in the pound upon all those who are required to pay income tax, and by a special new tax on motor cars. The income super* tax is expected to realise £350,000, and the motor car tax £50,000. Members of the Opposition were quick to interject "Class taxation," and "All classes ought to contribute." Ml. tfolman estimates tho receipts for 191445 at and expects a deficit of ±.119,000, with the receipts from tho new taxation taken into account. Tha Premier of Victoria in a short pre. Budget statement in Parliament tha other evening aroused cheers when ho dealt with the financial outlook in that* State in very optimistic terms, and an. liounced that the Government did not intend to adopt any scheme of "hysteria cal taxation/ For various reasons, which need not be set out here, financial conditions and prospects in one Austrahan State differ widely from those in another. For instance, in Queensland, matters are much more comforting than in the nearest Southern neighbour, New South Wales. Queensland lias just announced its tenth surplus, and has in addition over a million sterling of loan »o»jey unexpended. The New South Wales Treasurer would most gleefully take ovejr Queensland's unexpended loan million .if he could get it. GOLDEN RAIN. < Australia is many thousands of pounds richer this week than it was last week. This is on account of rain— rain' of the kind which an ex-Premier of Victoria habitually referred to as "raining sovereigns." The drought hw been broken as regards considerable tract* in South Australia and New South Wales by a splendid monsoonal downpour. Unfortunately it cannot be said that the rehef has been more than partial, buti it hag saved a lot of live stock, and may lead to farmers getting something back . from the ground in places where until this most welcome visitation the wheat v ? ot even g ermin . at ed- Moreover, it has helped to sustain hopes that more rain will reduce the threatened national drought catastrophe while there is still a chance of salvation. As it ie the losses must be very severe. Victoria did nob share in this rain, nor did the Pviverina district, which is the most- important part of the wheat belt in New South Wales. What a dought means may be illustrated by stating that at the end of last week it was estimated that thy wheat crop of New South Wales wouk be a couple of million buehels short of the quantity of wheat required for loca' consumption in this State alone. In parts of the Riverdna the farmers will not get back the amount of seed wheat which they put into the ground. While the intense' hardship which existed ii. the northern part of South Australia Uv been set aeide by this golden rain, (ie southern portion remains drought «{ ' flicted, and tho people of. Adelaide ;t. faced with the prospect of a painf- 1 shortage of water for domestic 'purposes.