A DESPERATE REMEDY

New Zealand Times, Volume XLIX, Issue 11246, 26 June 1922, Page 8

A DESPERATE REMEDY

AUSTRALIAN CONDITIONS NATIONAL DISASTER SAID TO BE POSSIBLE. ARBITRATION REPUDIATED. Speaking of the general, financial and commercial outlook in Australia at the present time, Messrs R. G. I)un and Co., trade and financial specialists of this city, referred to the Australian industrial ferment, and quoted a recent writer of Sydney, who, after denouncing tho present conditions as “a standing disgAce,” suggested the following drastic* remedy: "Smash these industrial condition** now, and at once regulate local costs of production. by the loreign, costs of production. *Thm and only then shall we (Australia) take our place in the industrial race which 'the world of manufacture and production has already started upon.” Tho above-quoted writer even went so far as stigmatising the Australian industrial conditions as> “a monument of retrogression and obstruction upon the path of advancement.” A DESPERATE REMEDY. The firm said that when one glanced at tho immediate possible consequence in that democratic country, the remedy certainly appeared desperate enough for the most desperate of diseases. Nevertheless, however expedient it might be, the suggestion contained the genu of an idea, a sentiment, tho commonsense basis of which must b© freely acknowledged by every thoughtful observer. Tho price of whatever was produced in surplus quantities must be regulated by the price which that surplus would bring upon T'fie vox’vi’s o fl . ,l 'kcv>. alter ii'ak«• iii**' du-* sd-owou)!* ior cert oi transit. s’!.* ,wm. .Jid u,;., hy any moans iidv’ocaxe .the uncoustdernd smashing of present industrial conditions, which might very conceivably bring down far more than the object aimed at. When once the policy of demolition, spoliation or disruption was entered upon, in a national sens© (they 6aid), tho movement might easily pass far beyond the control of its promoters. Australia was certainly not .Russia, and Australians could not ah ford to ignore the analogy. SYDNEY UNEMPLOYMENT. Speaking of Now South Wales conditions, it was a fact that, despite the vigorous policy of Government assistance ajul a feeble effort at reducing production costs, unemployment was growing apace. Many industries were quite at a standstill, others tottering in threatening fashion. Tho strike of the shearers in all the States, with the exception of Queensland, meant that the most powerful and numerous of all the unions had utterly repudiated arbitration now that tho court no longer kept on increasing wages. In addition to that, the huge Newcastle steel and iron works were silent ; industrial mota-l mining was a dead letter; and an early coalminers’ strike had now become much more than m mexo possibility. In existing circumstances, tho course was plain; there must ho give-and-take on every side, otherwise an industrial disaster aggregating almost national dimensions, must become something more than a remote 'possibility. A PARTNERSHIP. Mr 11. E. Pratten, M.H.R., one o! the most thoughtful of the presentday Australian politicians, possessing also tho advantage of extended experience as one of the great captains of Australian industry, had amassed a fortune while still in the prime of lifa, and had since been devoting himself solely to politics. Retiring from tha Senate recently, he captured the 6eat vacated by Sir Josoph Cook when the latter proceeded to .England ; and, reviewing the situation the other day. he said he was forced to the conclusion that events were moving towards allowing Labour a share in the control of industry. Mr Pratten advocated a partnership scheme by which wages would be paid to Capital, just as wages are paid to Labour, and then a division of the balance of profit , between Labour and Capital. Asked - what ho could suggest as a fair proportion, Mr Pratten said he thought 7£ per cent, a fair "wage for Capital; and that, after that much had been paid, any profit remaining should be divided between Capital and Labour in the proportion which Capital invested bore to Labour. Although some such scheme was already in operation in England, it was more than doVbtful if the tima \ya s yet ripe for anything like its general adoption in Australia. Sydney markets underwent no material changes last week, hut the outlook was not exactly bright. Ono characteristic pervaded pretty weli all the markets: there was practically no forward . buying, and specTilation w«(i apparently non-existent. Importer*! feared an inrush of Central European goods, as also did local manufacturers. All feared Labour complications, while at the same time anxious for a reduction in production costs. MONEY NOT PLENTIFUL, On ’Change investors were not nearly «jo anxious to hold Onnmonwoaltfi securities and other gilt-edged lines as they were a month ago. Money was not nearly so plentiful as it was n little while ago, although the monetary position appeared betfer overseas. Tn the produce markets, the merchants reported good business with increasing supplies. Drought conditions still pro vailed in , the north-west .of New South Wales* but tho agricultural and dairying dismete and Rivcrina had a ! fair rainfall. .For these reasons the seasonal prospects were varied in proportion. Tn Sydney tho banjf clearances showed nn increase for. tho week of £1,870,304, hut a decrease for the first five months of the.year, as compared with the corresponding period of 1921, of no less tliap £5,635,097. CONDITIONS IN VICTORIAApart from the usual order*? at the turn of the month the Victorian business of lato had been somewhat sluggish, owing, apparently, to the influences that operate at this time of /tho year. So iar as the country districts were concerned, as the farmers and graziers had received in the aggregate a substantial sum of money 1 from the past season’** productions, , and although more rain was to he desired in somo districts, the new season had made, on the whole, a favourable 6tart. Tho state of employment in Victoria was, generally speaking, satjsfactorj", comparing well with some of the other States. Increasing attention was being directed to the' question of public expenditures and taxation, iho importance r.f which had been emphasised by the Taxpayers' Association for some time past. From tlxo statements of tko Federal Treasurer, however, it was to he gathered that litilo could be hoped for from administ r;0 ivo. economy, the main hop* l of relief from the present burden of

taxation lying in increased production. A glaneo at the figures relating to production showed that .there was room for vigorous efforts for the purpose of resuming the progress interrupted by the war. WOOL MARKET. Rending the reopening of the Melbourne wool sales on June 6th, the attention of the trade had been principally devoted to the news from other centres, where the of the market had maintained its firmness after the advance of the last few months. Victorian wool arrivals, since July Ist last, now showed an increase of 149,000 bales, and Sydney arrivals an increase of 203,200 baJetq making a total increase for these two States of 352,600 bales, as compared with the same period of the previous season. AVHEAT AND OATS. * The wheat markets had been showing dullness owing to the easier.feeling in America. From London the sale of an Australian cargo was advised at 57s per 4Solbs on c.i.f. terms. Locally the quotation of tho Victorian Wheatgrowers* Corporation for local consumption was 5s lid per bushel. Flour had been reduced to £l3 2s 6d, bht bran and poLlard, for which tho demand had continued active, had been raised to £8 os. Since the coinmonoemont of the 6eason, in December last, Australian wheat and flour exports had been equivalent to about 67 -million bushels, or an increase of about nine million bushels as compared with tho same period of last season. The market for oats was firm at 2-s 9d to 3s 4d; maize, os 9d for old and os 6d to 5s 7d for good new. CROP FIGURES. The official returns of the principal Victorian crops, as compared with those for the previous season, were as follows: 1920-21. 1921-22. Bushels. Bushels. Wheat 39,468,625 43,867,596 Oats 10,907,191 6,082,258 Bariev (malting) 1,306,210 1,103,039 Bariev (other) ... 1.189,552 1.233,207 Rea*?’' ' 125.5 L ‘166.474 !Yus. lon*. •;-L v Mvl-eaum)... 2*'\rt l l 173.834 Kay (oaten) ... 1,-32.,665 Hay (lucerne) ... 44,402 47,554 A statement of the position of tho Victorian voluntary wheat pool up to May 20th last showed that, out of 32,077,765 bushels received, 17,298,694 bushels had been shipped, and 8,054,995 bushels delivered locally and at mills, leaving 2,110,976 bushels at country istations, 4,014,000 at seaport depots, and GOO,OOO in transit. Of tho stocks held, 6,658,000 bushels were required to satisfy overseas and home contracts and to fulfil charter requirements. The total advanced to growers was £5,340,383, and the amount owing to bankers was £172,764. The butter market showed little variation, but with-* colder weather a new decline in production was now looked for. The Melbourne quotations were 190 s to 196 s per cwt. The Melbourne bank clearances for the week ended May 29th last were £12,469,001. or an increase of £2,212,593 over the corresponding week of last year: but there was a decrease of £1,110,400 in the clearances for the first five months of this year as compared with tho similar period of 1921.