AUSTRALIA'S TROUBLE

Evening Post, Volume CXI, Issue 103, 4 May 1931, Page 9

AUSTRALIA'S TROUBLE

SITUATION SURVEYED

SYMPOSIUM OF IDEAS

SCULLIN CONTRIBUTES

United Press Association—By Electric Telegraph—Copyright. (Received 4th May, 10 a.m.) LONDON, 3rd May. The Financial Supplement of "The Times," dealing specially with the Australian situation, surveys fully the economic and industrial conditions. The writer, Mr. R. J. Barrett, editor of the "Financial Times,'' emphasises the need for the young country to tell the world how actually it stands in order to correct misgivings and misapprehensions. Britain has not forgotten Australia's war lime sacrifices nor the crippling financial obligations incurred in them. It is ridiculous in the face of Australia's remarkable developmental achievements to treat this passing phase of economic stress as symptomatic of decay. Australia is really in the flush of vigorous youth, and has natural advantages and potentialities unsurpassed in the world. Paradoxically Sir Granvillo Eyrie's foreword gives tho actual explanation of the present crisis, with an outline of' remedial measures, whereas Mr. Soullin's page article is virtually without a policy. It merely recites Australia's resources, finally claiming that while Britain's debt is almost entirely deadweight, arising from the war, only one-third of Australia's debt is associated with the war. The remainder is represented by assets contributing to the payment of interest on the debt. Mr. Scullin *s closing paragraph ends on a reflective note: "Perhaps we might have done better. If the whole world spoke honestly of its endeavours, would not the answer be the same: 'What would Vc not all give to undo yesterday's mistakes.' " Professor D. B. Copland, examining the factors underlying the crisis, points out tho disparity arising when wholesale prices have fallen only 18 per cent., whereas export prices are 50 per cent, lower. He argues that the loss of income, now mainly falling on producers, must be spread evenly over tho community. He considers that if the Governments devise a three-year rehabilitation plan, confidence will follow and tho fall in costs from the, reduction of wages will provide a basis for economic recovery. Mr. A. C. Davidson, general manager of the Bank of New South Wales, thinks that, given good seasons, a termination in the decline in prices and Budget equilibrium should be possible in June, 1932, paving the way to a reduction of internal interest rates, an extension of credit to assist primary industries, and the raising of a loan temporarily to finance exports. "Then, he- says, "we shall look to Britain to contribute by funding tho floating debt, say, at tho rate of ton or twelve millions each half-year." Jt is noteworthy that Mr. Lang is not among tho Premiers contributing articles.