A BLUE SKY, BUT

Evening Post, Volume CXII, Issue 152, 24 December 1926, Page 5

A BLUE SKY, BUT

STORM-WARNING BY PASTORALIST

SPENDING ON "GOOD SEASON"

SCALE

WHAT OF THE FUTURE?

Bankers and pastoralists in Australia continue to raise their voice

against extravagance there —particularly Governmental extravagance. The latest is Mr. J. M. Niall, chairman of directors of Goldabrough, Mort, and Co., Ltd., who presided at the statutory half-yearly meeting of the company. There was a large attendance. Mr. Niall said:—"l.'.would emphasise the heedless policy of our Federal and State Ministries in continuing to borrow and spend huge sums of money, ostensibly for reproductive purposes. Experience has proved that much money has been spent, in many cases, on undertakings that for many years, if ever, cannot give a reasonable return on the capital invested. TAXING EXPORTS. "The exports of this country are its very life-blood, and as the years go on they are being more and more heavily taxed. Wool—by far the greatest asset Australia possesses —is carrying the largest part of this growing burden. For a community of 6,000,000 the per capita debt and expenditure are too high, and although much of the per capita debt is accounted for by the war, that fact is no justification for the continued borrowings which appear to be the settled policy of aH Ministries. Australia's assets are potentially great, and the Federal Budgets have shown substantial surpluses. From the creditors' point of view the country is abundantly solvent, but these surpluses have been gained, firstly, through a successions of good seasons, and, secondly, by relatively heavy taxation, both direct and indirect. ' Should the earning capacity of the country be impaired by bad seasons, or a fall in the prices of primary products, or both, as is in the very nature of things certain to happen, the burden will be unbearable. There is no excuse for extravagance, and the apparent prosperity of the country has not lightened, as it should have done, the load which the producer has to carry. As a result, production is not increasing as it should. "Generally, Australia has enjoyed prosperous conditions for some years, but instead of setting the example of prudent financial administration' and reduction of taxation, our Ministers are piling up debt, and are entirely neglecting their duty to provide against the day of financial stringency which is sure to come. There is urgent and immediate need for public and private economy. To my mind the danger is so real and so certain to fall on us sooner or later < that I find it difficult to comprehend thc N stand of those responsible for the government of the country, who almost appear to compete with each other in this wasteful extravagance. ANTIFROPERTY MINISTRIES. "In New South Wales the present Ministry has passed a number of Acts obviously designed to penalise the owners of property. The State Arbitration Court has raised wages of shearers and other rural employees beyond the scale fixed by the Federal Court, thereby creating discontent among workers subject to awards of the Federal Court and laying the foundation of serious trouble in the future.

I Mr. Niall said that he deplored the subsidising by Ministries of the smaller industries such as tho tinning ..f pineapples and the cultivation of bananas. He felt that the wool industry was the greatest in the country, and that it should be given the utmost encouragement. As it was, the larger holdings had continually to bo cut up into smaller- ones. "Conditions in all the States are fairly satisfactory," Mr. Niall continued, "except in Queensland, where tlio central and northern districts are still suffering from drought in an aggravated form. Heavy losses have already been sustained, variously estimated at from 7,000,000 to 10,000,000 sheep, and proportionate numbers of cattle and other stock. Enormous expense .has been incurred in keeping the stock alive. Wo arc close to tho time when tho wet usually sots in, but if the rains should fail again, as they did last year, the outlook will be deplorable. In parts of Northern and Western New South Wales rain is now anxiously looked for. The weather has not seriously affected as although we have been put to a little expense keeping stock alive. As yet we have not been affected by the bush fires in New South Wales.

"Stock markets aie dopressed. The country generally is fully stocked, and there is almost no demand for stores. Should good rains fall in Queensland in the next few weeks there will probably be a demand from that quarter for reutocking the country now suffering from drought. If, however, no relief comes there, the outlook is for lower prices. The-wool market opened with good competition and firm prices; as sales were made a fall was recorded of 5 per cent, to 10 per cent., but the latest auctions here and in London seem to indicate that the fall has been arrested, and for some classes of wool a slight recovery is recorded."

An interim dividend at the rate of 10 per cent, per annum for tho six months ended 30th September was declared.