BRIGHTER PROSPECTS

New Zealand Herald, Volume LXXI, Issue 21874, 9 August 1934, Page 8

BRIGHTER PROSPECTS

AUSTRALIAN CONDITIONS EVIDENCES OF RECOVERY UNEMPLOYMENT REDUCED The impression that Australia was well on the way to recovery was gained by Mr. H. F. Herbert, of Christchurch, who has returned from a six weeks' visit to Melbourne, Sydney and Newcastle. He said that all round there were signs of a return to better times. The building trade was booming, and unemployment had been reduced by nearly one-third within the last 18 months. Australians agreed that since the beginning of 1933 they had emerged from a reign of terror. Signs of the depression were now vanishing, and the people were settling down to a life more or less on the lines of that of the old days. Victoria, and especially Melbourne, said Mr. Herbert, when interviewed by the Press, was experiencing a burst of building, and in that State £4,500,000 had been spent in the last 12 months. The new buildings included 1300 new homes, 1100 new, flat buildings, new shops, a new theatre, and new premises for the Bank of New South Wales. There were the same progressive signs in Sydney, but perhaps not to the same extent. Busy Manufacturers The unemployment situation was still serious, as 200,000 men were unemployed, among them 90,000 trades unionists, but in 18 months the total had been reduced 30 per cent. Manufacturers were busy, and as official statistics had shown an increase in manufacturing and business activity, the basic wage had been raised. Wheat and wool were better, and five successive good farming seasons had helped materially in easing the situation in the country. There were signs everywhere in Melbourne of preparation for the Centenary, and already most of the accommodation in the hotels had been booked. Mr. Herbert said be found that the retail shoe trade was in a precarious position at present because of pricecutting caused by the keen competition of chain stores. The small individual retailer was having a bad time, and even manufacturers in many cases had to sell at prices which showed little or no profit. Boots and shoes and light wearing apparel were very cheap, but the cost of living in other directions was about 20 per cent higher than it was in New Zealand. The people had forgotten the depression, and were already spending freely.

One of the most impressive signs of returning prosperity in Australia noted by Mr. Herbert was the inauguration of a number of new shipping services to Commonwealth ports from all parts of the world. Ha formed the impression that there was no need to fear for the future of Australia, as on all sides there were evidences of returning prosperity, and indications of coining development. Australia was able to produce almost anything it needed. Another Visitor's . Impressions Mr. H. B. Duckworth, also of Christchurch, who has recently spent five weeks in Melbourne and Sydney, said in an interview with the Christcharch Times that he was last in Australia three years ago, when the Lang Government was in power, and conditions could not have been worse. In comparison, to-day there was a much improved tone in Melbourne and Sydney. There was definitely more confidence evident and a striking feature of the cities and suburbs was the tremendous amount of building that was going on. In South Sydney, the industrial quarter, contrasts had been let for new buildings and additions to existing buildings valued at £120,000. Three new buildings, to the value of £25,000, £20,000 and £18,500, were included in the building programme. It was interesting to note also that there had been a remarkable boom in motor-boat building, and the builders were rushed with orders. Generally it was the busiest time in the trade since before the war. "Australia is, by comparison with .three years ago, a new Australia," said Mr. Duckworth.