Greymouth Evening Star. AND BRUNNERTON ADVOCATE FRIDAY, JANUARY 11, 1928.. AUSTRALIAN FINANCES

Greymouth Evening Star, 11 January 1929, Page 4

Greymouth Evening Star. AND BRUNNERTON ADVOCATE FRIDAY, JANUARY 11, 1928.. AUSTRALIAN FINANCES

yHE report of the four Homeland financial and commercial experts, invited by Mr. Bruce to enquire into Australian conditions, did not provide any surprises, each and all of the recommendations having been made time and again by prominent Australians and Press. It was not to be expected that a short stay in the Commonwealth would enable the visitors, however expert, to find a solution of Australian difficulties that would be novel and acceptable, and it is doubtful if much practical good will be the result of the enquiry, unless the Australian attitude changes. There is little sign of that, meanwhile. The visitors criticise Australian methods of expenditure and borrowing, industrial troubles, tariff' anomalies, differences in railway gauges, extravagance in administration, and high cost of production. Again and again, have these items been similarly dealt with by Australian critics, but the remedies suggested were not popular, and the respective subjects were shelved :

for future consideration. If more action results from the Englishmen’s report, the expense of the enquiry will have been justified, but there is room for honest scepticism. Australia is unlikely to check her borrowings, as if London lenders are coy, New York financers will be more obliging, on

their own terms. He would be an optimist indeed who believes that the latest report will do much to 1 bring about greater industrial peace, or induce high protection advocates to lessen their claims. The varying railway gauges have long been admitted to be a serious handicap to Australia’s progress, and i nnumerable ‘ ‘ enquiries ’ ’ have been made on this subject, all the recommendations being practically ignored on the ground of the great expense involved to secure a standard gauge. Extravagance in administration has.long been self-evident, but rebuke from English magnates will be but an addition to the censures previously passed by those with greater knowledge of Australian conditions. Politeness to the English experts I

may cause a temporary chorus of acclamation, but what Australia really requires is a change in public opinion, forcing Commonwealth statesmen to enter on a task that has long been obvious, if unpopular. Australia knows its commercial and financial diseases, and needs no more doctors to diagnose these. The “illness” is not incurable, but the process of recovery must be I long. The “Big Four” agree that the financial resources of the Commonwealth are more than sufficient to meet normal requirements, and with greater prudence, all source of serious danger could be removed. For instance, the chief industry, wool, could be immensely developed. The actual number of sheep carried in Australia to-day is estimated to be little, if any, more than in the early ’nineties, and experts declare that at least 50 per cent, could be added to the total. A Queensland report recently demonstrated that “the cost of production had increased over 100 per cent, since 1914, and that of every £9O of gross profit the woolgrower has to pay £52 to labour and £lB to Governments, leaving £2O for himself in compensation for the risks run and for the meeting of continuing risks. Although average prices obtained for Queensland wool were 15.26 d. a pound in 1925-26, as against 8.71 d. a pound in 1911, yet costs of production per pound have increased in that period from 5.39 d. to 12.43 d., and the net return has therefore fallen from 3.32 d. to 2.83 d. Stating the present return in terms of 1911 money values, the falling off must be considerably greater.” Whilst this state of affairs continues, the sheep-raising industry is unlikely to develop. Yet Australian town-dwellers are unlikely to become enthusiastic over schemes granting the farmers relief from present burdens, if the townsmen have to make concessions. New Zealand will watch Federal developments with interest, and will be glad to see the Australian house set more in order, for the two countries’ interests are closely inter-dependent, rivals though they may be in certain avenues.