PRICES AND WAGES

Evening Post, Volume CX, Issue 47, 23 August 1930, Page 12

PRICES AND WAGES

POSITION IN" AUSTRALIA The National Bank of Australasia, reporting 11th ' August, states that business generally continues depressed, with little apparent movement from the level of the past few months.. Some imj provement is usually associated with the proximity of the spring season, but any t movement in that direction has been 1 checked by the Commonwealth Budget , and announcements by State Treasurers, foreshadowing heavy increases in taxa--3 tion. 1 Increases in income tax rates, higher ; postage charges and customs tariff all . tend to depress business sentiment, and strong feeling is ' growing more general ' that reorganisation is necessary. This I would involve a return to strict' econ- . omy in public and social life, and a marked lessening in the restrictions now operating upon the relations.between em- ' plovers and workers, and tending to uphold working costs without due regard i for outputs. : The outlook is brightened a little by 1 the favourable season and by uatural movements tending toward sounder in- ■ dustrial relations. Good rains have fallen ; through the past month, largely mak- ■ ing good the deficiencies of the previous ' quarter. A large wheat y.ield is in prospect, subject to favourable conditions up ;to harvest time. Pastoral conditions, ■ though' not uniformly satisfactory, are now very good over large sections, and will improve with the advent of warmer weather and wide interior areas, where good rains have fallen but the grasses are still backward, are assured ample spring fodder. A large wool clip is certain, and the outlook for prices is thought to be somewhat improved. Official statistics of retail prices record a further downward movement in prices of food and groceries, making a decline of 8 per cent, for the twelve months ended June. This is accompanied by a similar movement in wages. There are wage reductions in Queensland of 5s per week affecting IGO,OOO workers. Civil Service salaries are also reduced.