AUSTRALIA TO-DAY

Evening Post, Volume CIX, Issue 123, 27 May 1930, Page 12

AUSTRALIA TO-DAY

REDUCED INCOME

NATIONAL BANK SURVEY

'•Evening Post," 27Ui May. ,• The view that progress towards a new , distribution of incomes in Australia at levels appropriate to the changed condi- ! tions is probably more rapid and effective than is generally assumed is put for- ■ ward by the National Bank of Australasia Ltd. in its monthly review. Wages .rate's, . it is pointed out, arc upheld by legal enactment,', but this has not prevented un--1 employment, short time -working, and a re-1 duction in the- total wages' paid per -week. Incomes of property owners generally have diminished in keeping with the falling off in trade. ■ Although rentals of ' shops, farms, and houses have been comparatively well maintained, capital values have ■ declined. This is not pronounced, but is serious to .those who have to sell. The only properties which have substantially held both their value and incomecarning capacity are Government and local body securities and fixed bank deposits. The output of secondary industries has been sustained, though production and . distribution costs are higher than m other countries. Governments' inability to borrow overseas in the volume of previous years has assumed undue importance because it has coincided with lower incomes from exports, and the premium at which London funds are now quoted in Australia may be vexatious, but the lesson of the fallacy of excessive borrowing will not Vie too dearly bought if it acts as a deterrent against similar action in future years. UNTIL PRICES RISE. Australia must expect some ' difficulty until the prices of her exports rise or the prices of imports fall. Further internal adjustment of laws and customs, incomes, production and values, will have to be made, and possibly some further reduction in the average standard of living. AH sections should refrain from attempting to subvert • economic facts to maintain rights and privileges whicli can be maintained only during a period of special prosperity. Australia, however, possesses a vast productive area, amply sufficient, it' wisely and energetically managed, to ■provide the needs of its inhabitants and a surplus to meet obligations overseas. In conclusion, the bank directs attention to favourable factors in the position, mentioning the better wool prices, lower cost of living, and good rains in all the States.. CONDITIONS IN THE STATES. ■ Dealing with conditions in Victoria the Bank observes that "the Stock Exchange, although free of Government loan flotations, shows no accession, of strength. Favourable indications are that there has been ■• no marked recession during- the month in values generally; forced sales,' either of real estate, trading, and manufacturing stocks or securities listed on the Stock-Exchange being, so. far as can be known from outward indication, not greatly in excess of normal." Special reference is made to the unem-ployed-taxation proposals and the urgent •need Jfor lowering rather than increasing taxation; :.i ' - New South Wales.—Though trade in Sydney was stimulated by the holiday influx of visitors, the general tone is one of jnarked dullness. Collection of book debts slow, in some quarters difficult. Larger retailers; advertising special sales and other inducements, without much'apparent success; Unemployment and: short-time working common; in. practically all industries as well as among wholesale and retail dis-tributors,-and are. marked,/ "among the ranks of artisans and unskilled .labourers. Some improvement may belooked for foljowing the higher prices obtained for wool lit recent auctions and more rapid disposal of surplus wheat stocks—estimated at 400,000 tons—which is likely to follow good crop rains.- ' \ ' ' ' . . • ■ ■ . Queensland has not yet recovered from the effects, of the long drought which was not completely broken until the middle of April., .The pastoral industry suffered severely and now needs a few favourable seasons with payable prices for wool and •meat, skins, and hides to make up some of its losses. Seasonal conditions are generally better through the pastoral areas than at the corresponding portion of, last year. The coastal agricultural and dairying districts report abundance of feed and water, and seasonal prospects are good, excepting in some of the southern sugar fields, where dry weather has been experienced. ~~ ■ ' In South Australia unemployment continues excessive and trade generally /is quiet. Registrations of new motor-cars during, March numbered 380^-the lowest recorded for any month during the past four, years. Heavy fruit crops and vine production. " , . Western Australia has had good rams bvev eastern goldfields and parts of wheat belt. Seasonal conditions over much the greater ,part of the State satisfactory. Trade slack, book debts troublesome to collect. Building trade quiet, unemployment excessive.