SIR JOSEPH WARD.

Waikato Times, Volume 98, Issue 16095, 19 September 1924, Page 6

SIR JOSEPH WARD.

j AN INTERESTING INTERVIEW. PROBLEMS IN AUSTRALIA. "I had a very interesting time there, and enjoyed the trip very much, but I am glad to be back in New Zealand again," said Sir Joseph Ward, who returned to Wellington by the Maung'anui after a visit covering a month in all to Australia. "Australia is a country .that always attracts one," he added. "It is such a tremendous country, so far as area is concerned, that one, not unnaturally, expects to see the outpouring of the produce from the interior aiding in the advance and expansion of the cities; and' this expansion is distincly noticeable at the present time in both Sydney and Melbourne. It is a little over 4J : years since I was' there last; and the buildings that have' been erected and are now going up in both these cities are very striking indeed, not only for their numbers, but for their great size and fine appearance; while the street traffic of Sydney and Melbourne is,-of course, far greater than that of any city in New Zealand. A Disturbing Factor. "But the' fact is that the populations of both Sydney and Melbourne appear to be with such great rapidity that they are drawing the people in too large numbers from the interior, and this drift from the country to the towns presents a .condition that is giving a good deal of concern to public men and private citizens alike in New South Wales and Victoria. One cannot say that this growth of ? the cities at the expense of the- country districts is a good thing by. any means; but the point is how are they going to prevent it? It is an awkward problem to solve. While their inland territory is so extensive, the fact that the rural areas of these States cannot retain all the ■ people that they now have on the land, obviously makes it exceedingly difficult to put a land settlement scheme or schemes in operation under such conditions as will, of themselves keep large numbers ,of future settlers out of the towns. However, that is a problem for the Australian people themselves to grapple with, and settle if they can. The, Currency Difficulty. Notwithstanding the fact that Australia is such a wealthy country," continued Sir Joseph Ward, "considerable difficulty is at" present being exexprienced over there in connection with their local currency. The problem that confronts them is, how to secure a sufficiency of banknotes to meet the full requirements of the Government, the business men, the. settlers, and others. The note issue in Australia is controlled by a note board of three leading and very capable business men. They fix the limit of the- note issue; and at present it is contended by the heads of financial institutions and others that the limit fixed is too low. But, if the limit were greatly extended, there is the fear of an inflation in values, followed by the inevitable throw-back of the boomerang. Thus it will be seen that the'control of the issue of the notes is a task of great responsibility. The Note Board recently decided to offer the banks an additional five millions sterling at the rate of 7 per cent., but it rather difficult for an observer to see how the banks can take up the extra amount offered at such a high rate of interest. It is the note issue upon which they are making advances to their customers, whether merchants', trades people, settlers, or what not, and to charge 7 per cent for the notes necessarily means making money dearer. This 7 per cent is of course, a gbod deal more than double what we charge our banks. "The Federal Government recently amended the Commonwealth Bank Act by establishing a board of directors,, and'there are other amendments. The note issue trouble is unquestionably giving a great deal of concern *n Australia at the present time, but it is hoped that when the board of directors created under the Commonwealth Bank Act is appointed there will be an adjustment arrived at in the way of relieving the existing situation. High Exchange Rates. "What has aggravated the whole position in Australia —as it has also accentuated our difficulties in . New Zealand —is the-difficulty of getting money back out here from London, the centre that purchases the bulk of our products. The money that we require to get back is, in the aggregate of course, the difference between the value- of our imports and our exports; but the fact that we are called upon to pay such a high charge as is made for exchange is having a very prejudicial effect in all parts where this exchange condition prevails. As I have said, Australia's wealth, notwithstanding the temporary difficulty in connection with money, is enormous. The present season's wool clip, for example, is . expected to realise at least 50 millions sterling, which is equal to all the exports of our record year put together. Moreover, the value of this season's wheat crop is calculated at 30 millions sterling; ar.d in South Australia the wine industry this year Is larger than it has ever been in the history of the country; which, of course, means a larger growth and a bigger aggregate value of grapes. So that these three natural products alone—to say nothing of Australia's large export of meat and dairy produce—give a very clear producing capacity of the Commonwealth. The plain fact is that this question of exchange from the Old Country to Australia has got to he grappled with on a new basis. To wait for a gold standard lo be established, and to have the people in these great countries almost brought up standing, financially speaking—or at least embarrassed in many cases—because our own money that is paid us for our products in London cannot get back to the producing countries without an excessive rate of exchange, is too absurd altogether. Such a stale of affairs cannot go on long without injuring, not only the overseas Dominions but the Old Country as well: and therefore this problem must bo solved. Personally, I hold the view, and have held it for a long time, that the matter can be satisfactorily settled, and I have more than once made suggestions in regard to it to high financial authorities in England. "A Peculiar Feature." "'But what seems to-me to be one of the peculiar features of the pro- , sent position is the fact thai, though jit is well known that no gold standard can he established at an early {date to meet this there are ! still men, and good men 100, who archarking bark and waiting for pre-war conditions in Hip matter of gold currency, though the gigantic trade developments in all parts of the British Empire during the war rendered the gold currency quite incapable of meeting the situation. In the meantime, the high rate of to get .money out from England to the overseas dominions is helping, among

other things, to bleed the owners of that money to. death. And it certainly is keeping up higher- costs for many of the things that we require for our daily use. "While over in Australia, .1 met Mr Bruce, Prime Minister of the Commonwealth, and Sir George Fuller, Prime Minister of New South Wales. I did hot while in Australia, nor do. I propose to do so now, discuss any matters in regard to politics as they affect Australia's internal affairs; but it is certainly the,case that the present position in that country is a very difficult one, and causes the men who are controlling matters to-load very strenuous lives." Wonderful Country With Qreat Future In conclusion, Sir Joseph Ward said: "Australia is a wonderful country, apart altogether from its size, which makes it almost a continent, and it must have a great future before it. After-all, about six millions of people in such a vast territory is a mere handful compared to the population that such a great expanse of country can carry. The manufacturing industries' over there are going ahead by leaps and bounds; and that, perhaps, is one of the reasons why the cities are drawing so many people from'- the country districts to swell their numbers. I was only- able to see Sydney and Melbourne,-as I had to get back to New Zealand; but Lhave had '.a very interesting and • a ' very

pleasant time, and enjoyed the altogether - too short visit very much indeed." .;.:;'.' ''.'.. ;■■•; .'•• .

Asked if he had anything to say on local politics, Sir Joseph Ward said that he wOuld prefer to say nothing about New Zealand affairs.