AUSTRALIAN NEWS LETTER

Taranaki Daily News, 19 January 1933, Page 15

AUSTRALIAN NEWS LETTER

A BRIGHTER OUTLOOK EXPANSE OF DAIRYING. A YEAR’S PROGRESS. (Issued by Empire Press Union.) This review of Australian affairs is prepared by leading metropolitan newspapers. each of which deals specially with progress and. events in its own State. The subjects are selected to give useful information to the Empire Press, and to supply a choice of matter suitable for publication. The news letter will be issued monthly. At the beginning of 1932 Australian 4 per cents, were quoted at £92 10s on the local market. At the end of the year they were worth £lO2. On the London market just before the announcement of the Premiers’ Plan Australian 5 per cents, were quoted at £63 10s. At the end of 1931 they were worth £96 and at the end of 1932, £lO5. These comparative figures are an illustration, in one respect, of Australia’s economic advance. The resolute observance of the Premiers’ Plan —an agreement for public economy and financial reconstruction between the Federal and the six State Governments—has given a feeling of confidence that, is expressed in more hopeful spending and enterprise. Although there has been an increase, chiefly within Australia, of the floating debt —due to the use of bank credits for public purposes—the estimated aggregate deficit of the seven Australian Governments for 1932-3. is expected to be well within the figure fixed by,the Premiers’Plan, which was 9 millions, Australian currency. Two and a-half years ago the Government were faced, with a probable total deficit of 40 millions. At that time estimates of the Federal. Government’s deficit ranged up to 20 millions. For 1932-3 it is expected that there will be a surplus of 3| millions. Had it not been for the further suspension of the interest and sinking fund payments on Australia’s war debt (to Great Britain) of 89 millions, the anticipated Federal surplus would have disappeared because of Australia’s liability for' a payment exceeding 4 millions sterling.

As will be noted from the letters referring to State affairs, Savings Bank deposits, building construction and general production, have all- shown a consistently advancing improvement. Company balance-sheets, generally, show much better returns. The Broken Hill Proprietary Coy., one of Australia’s greatest industrial and mining enterprises, Has returned to the dividend list after an absence from it of three years. AUSTRALIA’S WAR BILL, / The sound position of Australia’s finances is the more notable because of the huge payments that have still to be made on account of the war. To date the War has cost Australia 770 millions. (Australian currency, now 25 per cent, off sterling), of which 467 millions has been spent since the Armistice. Up to the present 110 millions has been paid in war pensions, 253 millions in interest, and 27 millions in war gratuities. With the exception of 89 millions still owing as war debt to Great Britain, all the money spent has been raised within Australia, and interest, pensions and gratuities have been paid on due dates from current revenue. OVERSEAS LOAN CONVERSION. In November last Australia converted a New South Wales loan of neatly 13 millions, maturing in London, at 3| per cent. During 1933 it will be possible to convert at three months’ notice London loans amounting to 84 millions. These loans bear interest rates of from 5 to 6J per cent. In view of the cheaper money it is expected that conversions will be possible at a maximum of 4 per cent., which will relieve Australian Budgets to the extent of £1,470,000 a year. £15,000,000 CONCESSION. Commonwealth Ministers have conferred with local representatives of investors who undertake to invest 15 million pounds in return for land,' pastoral, mining and agricultural concessions in the Northern Territory, the sparsely populated part of norther Australia, containing an area of about 520,000 square < miles. The feature of the proposal is a land grant railways from Bourke, New South Wales, north-west-erly to Port Darwin, the Territory’s port. Those seeking* the concession want the Commonwealth Government to guarantee their bonds. If that request be adhered to it is by not means likely that there will be an agreement. STATE’S REVIVAL. The end of the year saw the State of New South Wales in a decidedly better frame of mind than was the case twelve months before. The bank figures show that a great amount of money lies dormant while the people are imbued with nervousness and a feeling of uncertainty, but there were in December reliable indications that the position is better understood and that the, investing factor is cautiously emerging from its retirement. The real estate market has revived, and the average prices of securities dealt in on the Stock Exchange have risen by 15 per cent, as compared with six months previously. Employees in factories have increased, the official records showing an extra 7 per cent, employed. Employees in the retail stores increased by 10 per cent, from what they were in the first half of the year. These are actual records, and not merely estimates. The best indication that the State is recovering is held by some business men to lie in the figures of building and construction. In the city and suburbs of Sydney the number of houses put up in a year was usually between 10,000 and 11000. The depression was shown in its mbst marked form (apart from the figures of unemployment) in the drop in building the applications for permits coming down very low. In December it was found that the applications numbered three times more than those on hand in the previous December. . Unemployment in the State is decreasing It is estimated that in the last six months of the year 20,000 men and women have been re-engaged m the factories. The index figure for September in connection with factories was higher than it had been since June, 1930 and after- September there was still further improvement. Under the dnect management of the State and therefore apart from the busines and employment in factories and retail stores, the State has provided useful work for 60 000 men The coal hauled for use within the State was 10 per- cent, more than during the last half of the previous year; the railway and tramway business expanded, and the motor lorries and vans on the roads increased' by 5 per cent. Deposits in saving banks in the State increased by £1,500,000 since May. ADMINISTRATIVE VIGOR. The State Government passed a number of Acts through Parliament giving relief in various directions, among them being enactments to enable farmers m . distress to be assisted by the Goveinment, reduction of interest on debts due to the Crown, and re-enactment of a

Moratorium Act, and a measure with landlords and tenants in an effort to solve the problem of impovishea tenants unable to pay their rent ana other charges and remaining in the houses. Farmers have come particularly under the consideration of the Government. Together with a reduction of interest'due by the settlers, administrative action is now undertaken in reconditioning their assets and maintaining their solvency. TAXATION LOWERED. There is a reassuring note making itself felt in actions by the State Government, which , has much to do with the return of confidence in builders and investors. The Government in New South Wales, under Mr. B. S. B. Stevens, presented its Budget for the financial year 1932-33 wherein some reductions of taxation were made, and the year’s accounts were estimated to show a deficit of £4,500,000, which, although large, is a considerable improvement as . compared with the condition of the finances at the end of the 1931-32 financial year of Mr. J. T. Lang, who, with a shortage of £14,000,000 m view, was refused a renewal of office by the people at general elections. The reduction of taxation was on the incomes of the lower paid wage-earners, and one third was taken off a special tax imposed on a number of municipalities for payment of the .construction of the £10,000,000 bridge across Sydney Harbour. Railway freights on wool, live stock and fruit were lowered 10 per cent, and ■ concessions were given in respect to workmen s fares on the railways and tramways. A sum of £lOO.OOO was set apart by the State Government through the Unemployed Relief Council for the purpose of assisting settlers who are prepared to increase production in the dairying industry. THE WOOL TRADE. The Sydney wool market closed before Christmas under excellent competition. A welcome increase in strength came from Yorkshire, Germany, Italy and Belgium competed freely, Japan bought with greater freedom, and France was very keen. Good orders for super-merino fleece wools were noticeable from ' A The C well distributed demand from overseas operators at the close of a heavy half year’s selling is regarded as

encouraging, particularly as for some weeks auctions were proceeding simultaneously in London. With catalogues containing a good number of high claps wools averaging approximately BJd. m Australian currency, and in the vicinity of half that figure on a gold basis, wool is undoubtedly cheap, and woollen apparel has been brought within the. reach of the mass of the people; otherwise the clips would not have been absorbed.. The encouragement lies in the fact that there is evidently an expansion of the market. It is considered that in view of the economic position rates for wool can be regarded as having displayed steadiness, although the rise to the peak point in mid-September was not maintained. In most cases the variation was only a shade over 10 per cent.