TRADE OF AUSTRALIA.

New Zealand Herald, Volume LXIII, Issue 19215, 2 January 1926, Page 7

TRADE OF AUSTRALIA.

PROBLEM TO BE FACED. COMMISSIONER'S SUGGESTION. A. and N.Z. LONDON, Dec, 30. Tho annual report of Mr. R. W. Dalton, British Trade Commissioner in Australia, emphasises the fact that Melbourne and Sydney contain nearly onethird of the population of the Continent, and also the seepage of population from other areas to the eastern States, particuarly New South Wales and Victoria. Mr. Dalton alludes especially to the drift from Tasmania, due partly to the unfavourable, conditions existing in Tasmania during the last few years, and also to the growing tendency to seek the more diversified life of the large cities rather than the lonelier and harder life in the back country. The, development of the manufacturing industries by a system of high protection has intensified the drift, and probably will continue to do so, says Mr. Dalton. This aspect of Australia's life ha:i considerable interest and importance from an economic viewpoint, and must be taken into account in considering organisations for the development of trade.

Regarding the suggestions for the control of wool, Mr. Dalton says that despite tho break in the market probably a majority of the more conservative growers dou,bt the advisability of reinstituting schemes which arc. considered unnecessary and undesirable in ordinary peace times. The people arc beginning to realise that there is a real possibility of the introduction of substitutes for wool, and that it is time that wool values were stabilised on a level which would permit the growth and consumption and remove any desire to adopt substitutes which may ultimately become serious competitors with wool. Tho report advocates that a delegation from Bradford should visit Australia and place before growers Bradford's real view point and the desirability of stabilising values at as low a price as possible consistent with adequate returns to the growers and others concerned. Important Industries. Australia's most important industries, continues Mr. Dalton, were those connected with metals and textiles, in which rapid development had been made, particularly iri iron, steel and woollens. These had and still have to face very severe competition from imported goods, and consequently have been unable to work with the success which should be assured to them. A number of branch factories of British firms established in Australia in some outstanding cases have been unsuccessful, duo party to over-capitalisation, high production costs, uncertainty of labour conditions and the fact that tho Homo markets had not been able to absorb the products of the works whoso efficiency demands a considerable output. Therefore, soon, even if not now, it will be necessary to find an export outlet for certain sections. Meanwhile, some industries established in Australia were signally successful. Regarding the import trade, Mr. Dalton points out that while the United Kingdom's share in the last two years showed a serious decline, the United State's share considerably increased, largely duo/o motor-cars. It might fairly be said that the United Kingdom's decline was not due to apy relaxation of effort on the part of British firms, but rather to Australia's protectionist policy, which naturally affects Britain's trade more seriously than any other country's because Britain is Australia's chief supplier and chief competitor in her industries. The Preference Regulations. The obvious inference is that it will !bo necessary for British firms to put forward increased efforts to secure the maximum possible of the trade which Australia takes from overseas. Mr. Dalton urges the heads of British firms to visit Australia and see the possibilities of developing trade, and also to take great care in appointing agents, for though Australia is now passing through a period of high protection policies this will not preclude the possibility of the development of British trade. Mr. Dalton says that he is of the opinion that the new preference regulations will prove beneficial on the whole, but that they will bear hardly on legitimate British industries which trade with Australia. It may also be expected to eliminate from preference many essential foreign goods which formerly participated. Producers generally are sanguine that pooling systems will bring a great improvement in trade, including more accurate and constant knowledge of the condition of stocks in England.