WHAT OF THE FUTURE?

Waipa Post, Volume 49, Issue 3555, 8 December 1934, Page 7

WHAT OF THE FUTURE?

PROSPECTS FOR THE DAIRYMAN. BANK CHAIRMAN'S REVIEIW. In the course of His report presented to the annual meeting of the "Bank of New South Wales proprietors, on 30th November at Sydney, the chairman briefly reviewed the past year and the prospects for the future. Reference was made to the difficult ies experienced by the primary industry in ibttn Australia and New Ztair.nci, and ve make the f illowing extracts as being of '. articular in rarest to these concerned with the industry :'n this Tominion: — "The dairying industry (in Australia) is now feeling the eft'ecis of th,; substitute sc'mnie of oraanhafen vhich took the place of the Paterson scheme when the grow'uig importance of experts made it increasingly difficult to achieve the end in view, by using the machinery of the Faterson schema. The result has been a higher internal price level for butter, while export quotas are regulated monthly. The Australian consumer has not yet had quite the same experience of paying guaranteed high prices as many of the peopjes of Europe have experienced in recent years. But so far no one has been able to discover the limit of their endurance, and many Australians are apparently prepared to accept further extensions of this policy without protest. The experience of the butter industry in Australia gives, however, the clearest proof that schemes such as these, however attractive they may appear, are in the long run disappointing jufet because they fail to get down to the root of the trouble which they are designed to meet. THE FUTURE. It is certainly undesirable to exaggerate the difficulties under which we are likely to labour during the next few years, but at the same time nothing is to be gained by pretending that things are other than in fact they are. There is, indeed, very good reason for believing that a prompt realisation of the fundamental character of our difficulties miay lead to their prompt disappearance or at feast to the adoption of a policy which will, sqi to speak, outflank them. W|e in Australia, in common with people in every other part of the woarld, are still very far from having reached the average level of real income which the progress of science entitles us, to expect. To make full use of -ail the opportunities which are now opening to us, there must be drastic reorganisation in some parts of out traditional economy. It is na anger rational to think exclusively in terms of extending our agricultural and pastoral production. If our standard of living is to rise, an increasing proportion of our capital and labour must be employed in the industries which are appropriate to the production of things which Reople with rising real incomes will want to buy. The adiaptations that are necessary will not be easy, and demand the active co-operation of all who have any responsibility for the organisation cif our capital market. But there is no reason for supposing that the difficulties are insuperable, and if they are squarely faced both Australia and New Zealand can look forward with confidence to prosperity surpassing anything we have known in the past and based upon more stable foundations. NEW ZEALAND'S POSITION. In New Zealand the trends of the last twelve months have been similar to thosie revealed in Australia, Whereas Australians think of British quota policy mainly in termls of the threat which is involved for the meat industry, this problem presents itself to New Zealanders more in terms, of butter. The principles involved, however in the two cases are much the same. The outstanding event in New Zealand economic life has indeed been the establishment of the Reserve Bank of New Zealand, Which began its operations on Ist August. The establishment of a Reserve Bank should undoubtedly facilitate the closer co-ordination of the various parts of the economic structure of New Zealand. Experience has shown the value of reserve banking in other countries, though the machinery is still defective in some respects: It is obviously important that a central bank should keep in close touch with local conditions and with the requirements of trade, commerce, and industry. Provided this condition is satisfied, there is every reason to believe that the new Bank will have results! for New Zealand no less satisfactory than those which have been enjoyed elsewhere. It is of course desirable that extravagant expectations should not be formed of what a reserve bank will be able to do. A reserve bank cannot do everything, and'even those things Which it can do effectively in countries with highly organised money markets may be outside the range of possibility in countries like New Zealand where machinery of this kind is still rudimentary. But even when all cautious qualifications have been made it remains true that the existence of a reserve bank will be an added strength to the banking system of New Zealand and a valuable contribution to the economic life of the Dominion. It is natural that in the' process o± looking about for new markets Australia and New Zealand should think first of encouraging trade between these, two countries, which on accconnt of their geographical situation arc apparently well suited for close commercial relations. It is true that the types of production which flourish in the two countries are in many re-. :;pects so similar that Australians and New Zealanders are more likely to find themselves competitors in external markets than customers purchasing each other's goods. Nevertheless there is considerable scope for further extension of trans-Tasman trade which would be to the advantage of both Australia and New Zealand. It is not very profitable to attempt, to allocate blame for the reluctance which has frequently been shown to. translate into effective action the protestations of common interest and interdependence which are common when Australian and New Zealand statesmen meet together in public. In both countries there are vested interests which naturally looik askance

at anything which seems likely to demand difficult adaptations on their part, It is important that public opinion generally should be well informed so that the pressure of vested interests shall not be given more attention than it deserves. CLIMATIC CONDITIONS. : , Over the Australian States the season was good on the whole, principal txceptions being deficient rainfall in the northern districts of South Australia and in some of the dairying districts of Victoria, whilst the autumn and winter in Tasmania were among the driest on record. Floods in the; southern areas of New South Wales' 1 will probably affect crop results, although possibly to no great extent. Grasshoppers have been causing trouble in several States, but the authorities have the matter of dealing with them in hand. The coming season promises weli, though Western Australia fcjcd a dry spring.in the Wheat areas which will' substantially reduce the. usual yield per acre. After a .dry spell in the northern pai'ts of Victoria useful rains have fallen. Rainis needed over some of the grazing,: lands in the north-west of Queensland, but can usually be looked for in the summer.

In New Zealand, following a favourable' spring, dry spells were experienced in the early summer, but good general rains at the end of December relieved the (position in all provinces except Marlborough and Nelson, where the rain came too. Tate., to save large areas of crops. Marchand April rains throughout the Dominion ensured good winter feed',' though there were some stock losses through severe storms. There is! general evidence that the coming-sea-son should be favourable.