“ECONOMIC” ENIGMA

Stratford Evening Post, Issue 91, 5 July 1930, Page 8

“ECONOMIC” ENIGMA

TARIFF WALLS AND BOUNTIES. POSITION IN AUSTRALIA. PALMERSTON N., June 23. An economic enigma, self-centred in interest, protected by high tariff walls and bounty fed, was how Mr, F. J. Nathan described Australia to the Palmerston North Rotary Club to-day on his return from a visit to the Commonwealth. When New Zealanders thought things were bad in their own country, said Mr. Nathan, he could assure them that they were having a mighty good time as compared with Australia, and living conditions in this Dominion to-day were better than anywhere else in the world. Whatever political party was in office, the legislation of this country was proceeding on sound and commonsense lines. In Australia it was not. V

Until Australia put her house in order she would never pull round from her economic and Industrial chaos, said Mr. Nathan. While erecting high tariff walls and manufacturing within her own orbit, she preferred to believe that her goods would still be admitted to other countries under the favoured nations clause. The Trades Halls in Sydney and Melbourne seemed to govern Australia. They went to Canberra seeking protection on this and that, and their wishes were acceded to. Business firms had been heavily hit by the prohibitive duties on all classes of importations, and the tariff was crippling trading enterprise. Apparently the Commonwealth considered that no business could be run unless it were protected or bounty-fed. For the encouragement of white labour in Queensland sugar was costing £3O to £35 a ton, whereas it could be landed in New Zealand for £IG or £l7. West Australia could secure Javanese sugar at £ll a ton, and naturally was growing restive.

The result of the prohibitive duties on imports was going to be very serious to Australia, continued Mr. Nathan. Large factories were baing erected, and with their big capital and mass production would force out all smaller organisations. One could not see where a solution of the economic position was to be found. It could not be achieved by reducing wages. When Australia persisted in putting up high tariff walls, other countries were bound to retaliate. France had taken the first step by erecting a high tariff against Australian wines, butter and wool.. The Commonwealth had expended vast sums on non-paying political railways, and non-productive grand buildings. It had continually borrowed to meet interest payments. This year the Federal commitments for loans maturing and interest amounted to £07,000,000, next year £03,000,000 had to be found. Canberra had cost Australia £12,000,000, and nobody wished to live there, said the speaker in conclusion. One in every seven of the population was either a municipal or a civil servant. Generally speaking, things were very bad in Australia.