RETURN TO STABILITY

Poverty Bay Herald, Volume LV, Issue 17640, 2 December 1931, Page 11

RETURN TO STABILITY

OPTIMISTIC VIEW AUSTRALIA’S SACRIFICES LONDON, Nov. 23. References to the “heavy sacrifices’’ made by Australia in an effort to regain economic stability were made at the annual meeting of Dalgotv and Co.. Ltd., by the Hon. E. W. Parker, chairman of directors, who also spoke optimistically regarding the future of the wool 1 rade.

Speaking of: the manner in which Australians had met their difficulties, Air. Parker said: “Briefly, they have agreed to a reduction of interest on the whole of their internal loans of £550,1100,000 by 221 per cent., to great retrenchment in the Public, services, and also to heavy sacrifices by the general community. Imports also have been drastically curtailed by means of the prohibitive duties, and as a result the Commonwealth’s external trade position for the year ended .Tune 50 showed a. great improvement, exports exceeding the value ot imports by £28,000,000. The real prosperity of Australia depends on the seasons and tin' prices procurable .for her primary products. She is experiencing a fine season now, and I am hopeful that we are on tin' eve of a rise in prices in these produets. Given these factors and a. fall in production costs, I believe that it will not be long before the road to 'permanent prosperity is open, though the process must necessarily be slow.”

WOOL POSITION Discussing the wool position, Mr. Parker said that the last selling season was one, of the leanest in wool history. It. had made il hard tor the grower and everybody concerned with the industry to make ends meet. The season had concluded, however, and everyone was in better heart to taco the, future owing 1o the measure of recovery experienced in recent months. One of the best features in the Reason was itli«» manuev in which owners had met the market, and with an improved demand for wool the year had closed with a, very small carryover, namely, 54,1.19 bales, compared with 108,318 in the previous season. As regards wheat, Australia’s prospects were good. In the coming season, growers would benefit by the effects of the alteration in the currency, and also through the advance in prices and the payment of a Federal bonus. Commenting on Air. Parker’s speech, the Financial News states that Air. Parker is evidently of the opinion that the tide of Australian affairs has turned. “Even .if we do not share his wholehearted admiration for the Australian conversion operation,” adds the papei, “it must be admitted that it was a decisive factor in the general economy plan, and Air. Parker is clearly of the opinion that, largely as a result of the assistance given directly and .indirectbv this measure, the, budgetary troubles of the present crisis have been surmounted. As regards wool, it is naturally difficult to hold any very optimistic view when the joint wool cheque of Australia and New Zealand fell to £51,200,000 for the 1930-51 season, against. £39,000,000 for 1929-30. and an average of £(59,5110,900 for tlie previous throe years.”