TOPICS OF THE DAY

Evening Post, Volume CXIII, Issue 9, 12 January 1927, Page 8

TOPICS OF THE DAY

''Atlas-like, primary producers are carrying tho world on their shoulders, if not on their,backs," stated the Minister of Lands and Industries and Commerco when addressing, tho Master Bakers' Association. The. burden of Atlas, however,- is merely fabulous. An unlearned people, not knowing 'the forces that supported the heavens, ascribed the burden, to Atlas.;: -The similo which likens tho producers to Atlas is almost equally faulty. .Without the assistance of tho secondary industries, primary production would be primitive. Unfortunately, our statistical system does not show this too clearly We see that 90 to 95 per cent, of our exports are the so-called primary products, but wo do not see how far those oxports arc made possible by the work of' others. "Whatl .would primary' production bo worth in New Zealand if it were not for cold stores, railway transport, refrigerated shipping, to say nothing of milking machines, cheese and butter-making plant, motors, tractors, implements of all kinds,! and, not least of all, the financial system under which trade ia carried on? Tho Minister of Lands, though a farmer, denies that he is "one of those farmers who beliovo that they must remain, the only pobble on the beach." Yet there are some of his fellow-farmers who do not take tho same view. Thoybelieve that they are now the only pebble, and they are far too apt to refer to tho banks, tho manufacturers, and the transport services as parasites—draining .their life-blood. They fail to realise that if it were not for these supporting services primary production would be \anaemie indeed. We agreo with the Minister that the establishment of now industries must be upon lines which will be beneficial and not burdensome to the whole country,' and if the primary producers will view the issue" in the'reasonable spirit "which the Minister counsels it should bo possible to. continue the association of the portfolios of Lands and >of Industries and Commerce without- detriment to either.

•■ * • It is as well that the City Council's Finance Committee should consider thoroughly the proposals for a Bescrves Loan before submitting them to the Council. Playing areas aro certainly needed for winter sports; and it seems impossible to'keep pace with, the demand if new works are undertaken only with funds that can bo sxiared from revenue. At the same time, ratepayers are apt to view reserve's as more of a luxury than a necessity, and it is essential that lean proposals shall be supported by complete information, as to cost and the anticipated benefit. The" works which the Reserves Committee has in view are in two classes:- those which will yield a helpful revenue to set against the loan charges 'and those which will return very- little. In ,the former class come such proposals as a now pavilion at "Wakefield Park to serve the golf links and the park itself. Players who have experienced the discomfort of the present accommodation would bo prepared- to pay for something better. , Tepid- baths, -long * promised, should.also yield a fair revenue. On the other hand, some of tho works which will, give no return are equallyimportant, because they will supply rocreation facilities in districts now poorly served. It is the Council's duty to endeavour to select works for an orderly development according to their importance, and then to present the proposals in suc\ a way that tho ratcpayors may accept the whole, of such' .part.as tfeajr. 055*055?. "~' '„."

Austr -lia's internal politics just i now pivot largely on New South Wales. The Mother State is experiencing a rathertroubled time politically, besides having had this season more than its usual share of whaekings at cricket; and if the latter misfortune can hardly be blamed to .Mr. Lang's Labour Government, it is at any rate clear that his Government's financial extravagance is at the root of the; political-economic complications. Two overloadings of the London last year by New South Wales left.Mr. Lang still•clamant for money, with the result-that he threw out plain hintsr—since modified— that if London cannot lend, New York will; and this is probably, true, but at a price. Not only did Mr. Lang try to play off New York against London. He also contrived to convey to the other States —those that borrow co-operative-ly with the Common wealth^ Government, through the machinery of the Federal Loan Council—an uneasy feeling that their internal loan arrangementSj.might be upset through. independent and undisciplined operations in the Australian money market by New South Wales. As a climax,- he has dismissed

many railway construction workers —a thousand, it is said—and is thus working up public opinion in favour of any borrowing policy, internal or external; ho may finally choose to adopt. Ho represents an element of uncertainty that the money market hardly appreciates.

Yesterday's cablegrams, which mentioned the New South Wales railway construction dismissals, ■ also contained the statement that "the Federal Loan Council had succeeded in borrowing in Australia, as a States' loan, not only the six millions it set gut to get at 5J per -cent., but .another half •million. ■Why does not New South Wales participate? Because Mr. Lang says that the Federal Loaij Council does not allot Now South Wales a sufficient share of the, proceeds ;of States', loans—does not give her a share commensurate with the proportion of the money actually raised within the Mother State's borders. THe Council's reply is, of course, that it rations all the participating State Governments, and that if..the State Governments . were allowed to take what they individually think, instead Of what the Council thinks,, the. internal investor's confidence would be destroyed. . And so Mr. Lang goes on his Way, willing to catch some millions Wherever ho can, and meanwhile .increasing tho total of unemployed. Having ''squared his party insurgents, he has recalled his promise to go to the electors, arid the Opposition, in retaliation for this breach ■ of faith, refuses pairs, and thus cancels two Ministerial trips to-Lon'don;':' The Commonwealth Government is preparing' the much-debated income tax legislation, but how tho States will react to it none can say, since there will be three State General Elections in Australia, this year, even if, Mr.-Lang succeeds in his evasion. ''■; -i." '"■■"■ '■' ':