POLITICS IN TRADE.

Waikato Times, Volume 100, Issue 16750, 17 March 1926, Page 8

POLITICS IN TRADE.

OBSTACLE TO PEACE. POSITION IN AUSTRALIA. DAIRY INDUSTRY AND CONTROL. (United Press Association.) SYDNEY, March 16. In the presidential address at the meeting of the Associated Chambers of Commerce, Sir Lennon Raws said:—• Any address delivered on such an occasion must be influenced, if not dominated, by three events which occurred last year—namely, the signing of the Locarno Treaties, the progress made in funding inter-Allied debts, and the return of Britain to the gold standard. Politics and finance had become closely interwoven during the war, and this meant that problems which were essentially economic were regarded as being capable of political solution. This was an obstacle to the rapid return to peace and prosperity. The events mentioned had been in the direction of disentangling finance from politics. The funding of inter-Allied war debts fixed the financial liability of the various nations and prepared the way towards economic restoration. The return of Britain to the gold standard had re-established economic influence as a determining factor in her currency and set an example to other nations who had not yet removed their currency from political manipulation.

In Australia the grip which politics had got on trade, and finance during the war was almost as tight as ever. The Commonwealth Covcrnment had greatly reduced its borrowing, yet the states showed little disposition to reduce their loan expenditure, borrowing abroad to an extent in excess of £275,000.000 in 10 years. This led to a heavy increase in imports and higher costs of production, due in part to the operations of the Arbitration Courts and wage, tribunals, to excessive taxation, to increased cost of Covcrnment services, and to the many restrictions placed by Government on trade.

Referring to Commonwealth and State expenditure from consolidated revenue. Sir Lennon said, omitting payments by the Commonwealth to the States, the expenditure from revenue in 1913-li was £02,020,000, whereas in 192.1-25 it was £153,010,000, an increase of 150 per cent., while based on 1911 values the total production had increased only by about 5 per cent. Of the increase in expenditure, war expenditure, railways, post office, pensions, maternity bonus, interest on sinking funds within Australia totalled £77,000,000, leaving £10,000,000 to lie accounted for by the cost of Government and other Government services. Referring to the dairy industry, Sir Lennon said the problem in dairying was the educating of the dairyman to cultivate his land properly, improve the standard of his herds, feed them properly, and increase Iheir productivity. He asked, was there the remotest connection between this problem and stabilisation schemes, export control boards and bonuses? Were those who advocated such schemes the true friends of the dairy man? Were they not his enemies, because they diverted his attention from the real problem of improvement of the quality of the butter exported? Thorough grading would do more for the industry than the control of sales. Ti-.c congress n;i»scd a resolution urging the Commonwealth Government" to abolish the federal tax on incomes without interfering with capitation grants to the Stales. A further motion was carried expreying the opinion thai the reduction of the woi'ki.-g week below -iS hours b.ad lon in a reduced output, higher costs of production pnd an increase in the cost of living.