PRODUCE & MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CVII, Issue 24, 29 January 1929, Page 14

PRODUCE & MARKET REPORTS FROM DAY TO DAY

ECONOMIC AUSTRALIA

$HE LABOUE MARKET

NATIONAL BANK REVIEW "Evening Post," 29th January. In reporting on the economic condition of Australia at the close of 102S and of the prospects of the.opening year, the National. Bank of Australasia remarks that, subject to the influence of political and social factors upon business conditions during the year, the general finance outlook for the twelve months may, at present, be classed as an improvement upon 1928. Wool production promises to be a record. The clip has beeu selling well, prices must be classed as satisfactory. Estimates of the wheat crop, have, been more than maintained during recent months, and it appears certain that present expectations of a total yield of.about 150,000,000 bushels TV-ill be realised. Internal trade and transport will benefit by reason of the large crop. Sugar production is expected to reach record dimensions. ' Output of butter for the first half of the season is well ahead of that for the corresponding portions 1 of the two previous years, and prices have been kept at a relatively high level, but production will decline rapidly unless early and substantial rains are received in dairying- districts. The crop of largo fruita will be light, but a heavy yield of grapes, and dried fruits is anticipated. ,' There'is much unemployment, many secondary, industries are in an unsatisfactory,condition, and trade generally continues depressed. \' However,'building programmes for the New! Year are fairly extensive, and a revival in -business : generally is expected when the larger pay-rolls come into circulation, accompanied by the proceeds of the main rural products. The mining industry, as a whole, though active, is not showing the profits of recent years, and coal mining is extremely depressed. HANDICAP OF TAXATION. Speaking generally, it appears probable that the depression will be less severe during the coming year, but it is impossible to foresee what the actions of Governments and of industrial groups may be. In this country Government actions largely influence business, and industrial ■unrest, if severe or long-sustained, has a most detrimental effect on the national prosperity. Other factors influence ■ the well-being of Australia, but their action has been held in abeyance by political and social influences for some years past. Reference has been made to a number of these at the various banks' annual meetings, and although business during 1929 maybe an improvement upon that of the year just past, that cannot be accepted as a sign that everything is fundamentally sound in, our economic system. The reduction in Governmental and private expenditure during the past year was undoubtedly necessary and advantageous, but Government expenses are still unduly high, and deficits are forecast by the Commonwealth and nearly all the State Treasurers. Taxation is withdrawing too large a proportion of business incomes, thus checking useful expansion of industry and preventing the absorption in productive occupation of the excessive number of unemployed. CONDITIONS IN THE STATES. Conditions of the States are dealt with in detail. Victoria reports "reduction in the amount of money available for spending, most marked with regard to expenditure on non-essential goods and services. .-. Provided' we have freedom from industrial unrest and no additional burdens upon industry arising out of new taxation or social legislation, it is reasonable to expect a moderate improvement in trade generally during' 1929/ though there will no doubt be some bad spots in certain sections." New South AVales: Retailers report disappointing ' turnovers; dairying industry experienced- unsatisfactory season, owing to continued, dry weather, and though prices are higher, dairy farmers' incomes are generally below last year's ' level. Wheat harvest abundant; sheep and cattle holding condition. -New buildings in Sydney area totalled £16,100,000, or nearly £2,000,000 greater than for 1927, a record year. -.;.'■■■ ;■ . . : • Queensland: Reports of trade more satisfactory than for some time past; sugar yield a record. South.Australia: Wine ' industry expects another year, of high production, but price prospects are poor; trade generally quiet. . Western Australia: General increase in business turnover; collection of trade accounts somewhat slow. Tasmania:-Trade fairly active; volume of tourist trade best for several years; fruit crop expected to be about half the size of last season., -.- EMPLOYMENT PROSPECTS. The labour market in the States may be summarised as follows:— Victoria: Unemployment has been severe during the past twelve months, but some large construction and building works are to be put in hand forthwith, and should employ skilled' tradesmen for some time. Number of unskilled workers seeking employment continues large. New South Wales: Building trades active. , Queensland: Unemployment still severe among factory .operatives and artisans. South Australia: Unemployment in the building trade and in other sections continues acute. Western Australia: Unemployment is Jess noticeable than in recent months owing to unskilled labour being attracted to harvest fields (