AUSTRALIA'S POSITION

New Zealand Herald, Volume LXX, Issue 21577, 23 August 1933, Page 11

AUSTRALIA'S POSITION

TRADE AND POLITICS "STILL CAUSE FOR ANXIETY" A VISITOR'S IMPRESSIONS [by telegraph—OWN correspondent] WELLINGTON, Tuesday Interesting comment upon political and economic affairs in Australia was mado by Mr. Edwin Salmond, of Wellington, president of tho New Zealand Importers' Federation, who returned by the Marama to-day from a visit to Sydney. Mr. Salmond said that from what he had observed ho was a little disappointed in tho progress that had been mado by the Commonwealth. There was no doubt that some progress had been made, but there were still difficulties to be faced and the country's position was yet a cause for anxiety. It was quite truo that companies which had not been able to pay dividends in the depths of tho depression were now able to pay them and in one respect that might bo regarded as a hopeful sign. But, on tho other hand, it had to bo observed that that had been brought about by a reduction in costs. For instance, tho basic wago had been reduced by about 12s a week, with the result that the spending power of the pcoplo had been reduced by millions. Consequently shopkeepers' business had been affected detrimentally. It was worthy of notice that tho prosperity spoken of had not been brought about as a result of increased trading. . Politics In Turmoil The present unsettled state of Australian politics was not helpful to tho country's welfare, continued Mr. Salmond. In fact, politically, Australia seemed to be in a turmoil, lhat her recently adopted trade policy was not fully supported by all sections of the community was shown by tho fact that there was a strong and growing feeling that Australia had gone "protection mad." Proof of this feeling was shown by the pressure applied on the Federal Government to secure a reduction of tariffs and to carry into effect tho provisions of the Ottawa Agreomcnt. Referring to Australia s trade position and her relation with other parts of the Empire, Mr. Salmond expressed the opinion that tho Commonwealth was prosperous really only at the will of England. Like New Zealand, Australia was dependent on primary production. She had a practically unrestricted market in Britain for lier pnjnary products, which were vital to her welfare, yet, *on the other hand, she had a high tariff wall and a 25 per cent exchange against the English manufacturer, making in effect an almost prohibitive tariff against English goods.

New Zealand's Attitude A vast amount of capital liad been put into Australian secondary tries and the Commonwealth would tie in a very difficult position if one day England took a strong hand and adopted the attitude that Australia must give freer entry to English manufactures. Both New Zealand and Australia had signed against England, said Mr. Salmond, but probably New Zealand's shortcomings had been largely overlooked in England owing to the greater sins of Australia. Touching upon New Zealand s attitude Mr. Salmond expressed the view that'the Dominion would be wise to link itself with England by every possible means. New Zealand's prosperity was entirely linked up with England s. If the Dominion's politicians took a long view and endeavoured to do as he suggested, and refrained from artificial inflation of exchange and other methods, it would probably be found that there would bo little likelihood of tho Dominion's markets being restricted. It must be evident that isew Zealand was far too small a community to endeavour to live within itself.