HARD TIMES

Taranaki Daily News, 23 July 1929, Page 16

HARD TIMES

SYDNEY FEELS THE PINCH

DISQUIETING SITUATION.

Sydney, July 4. One does not like to assume the role of a prophet of gloom—there are enough pessimists. in the world—but there is no disguising the fact that Sydney is passing through hard times.

The business community is trying to put a cheerful face on things, but the fact that the city is facing a bad time I cannot be masked. The shops generally are feeling the pinch. The other day the Minister of Trade and Customs (Mr. Gullett) in a speech in Sydney before the Constitutional Association, uttered a grave warning with regard to the economic position facing Australia generally, and said the time had arrived when the community had to think harder and work harder. “He’s a gloomy prophet, anyway,” muttered one of his audience, after the gathering had dispersed. “But why play the part of the ostrich?” inquired another business man. “Why bury our heads in the sand, when we know what he says is perfectly true.” The fact that there is railway and tramway retrenchment is, in itself, significant. The latest dismissals affect about 130 tramwaymen, owing to a slump in tram traffic and revenue. With a Public Debt in New South Wales of more than £245,000,000; with an interest bill on that debt of about £1,000,000 a month; with an increase in the wages bill of the railway's and tramways of more than £2,000,000 in respect to awards and the 44 hours week, compared with 1923-24, and with a financial tightness generally, it is not surprising ' that the Government is out to make every penny a winner. The man in the street is apt to attribute the depression to the Government, especially if he is a Labour supporter, and to such other factors as the coal crisis, for ' example. The trouble on the coalfields is, of course, reflected in the city, but the root causes of a disquieting financial and economic position in the 'State, ,if not throughout Australia generally,' are the hard-boiled fact that the value in the world’s markets of the things we produce and sell has substantially dropped, and that our production costs are becoming too high to enable successful competition, in markets abroad. However superficially the' average man is inclined to view these things, Australia is vitally influenced by world problems and situations, and cannot escape them. In 1923-24, for example, New South ™ ales was able to get an average price of considerably more than 2s a lb. for its wool. The. average price during the first quarter ,of this year was Is Bd. When the present Government assumea office in New South Wales, the price o wheat was os 6d a bushel; to-day it is about 4s 3d. The quantity of primary production has increased during past few years, but this increase has not been sufficient to make, goo i loss in overseas value. That is the iea economic problem. . That the Government’s financial pr . gramme for the incoming financia yea will disclose further economy of a y definite character is beyond <l u f"on. The Service lias “the wind up. There is talk of an all-round sala y cut, but this is not likely to be resoited to except as an extreme measuie. would be inexpedient political y, . way, and the Government knows it. Let it not be inferred from all th that New South M ales g° in f £ “deninition bow-wows. But «e Pos tion is not at all bright, and why tij to disguise a fact which e\cn ■ eminent itself makes abundantly cleat in its pronouncements and actions.