AUSTRALIAN FINANCES.

Waikato Times, Volume 108, Issue 18158, 24 October 1930, Page 9

AUSTRALIAN FINANCES.

PLEA FOR WAGE CUTS. . BANK ' EXPERT’S VIEW. “The country still looks to the Federal and State Governments to provide a lead, firstly by reducing their own expenses, and secondly by withdrawing ■ the many restrictions which have been placed upon industry and trade during the years of prosperity, and which now operate to prevent the restoration of a sound economic condition." In those terms the expert of the National Bank of Australasia opens his examination of Lhe financial condition of Australia. Leaders of business and investors alike, it is stated in the bank’s review, are too uncertain with regard to the demands which the Government may make in the way of taxation, and are hampered in their efforts towards improving business- by the knowledge that, except in certain sheltered industries, it is impossible Lo make fair profits, and in some cases even >pay expenses. Wage rates and working conditions, as lixud by Arbitration Courts, Wage Boards and other instrumentalities, make it impossible to produce many commodities within the range which purchasers can afford lo pay. While tiic Governments maintain their expensive establishments and postpone absolutely necessary reductions in wage and salary rates, botli within and ouLside of the ranks of public

servants, any real improvement is practically unattainable. * Met Difficult Position. The difficulties of the past year have served to show that business generally was in a far stronger position at the beginning of the . present depression than had generally been supposed. There has been undoubted extravagance, and policies of expansion had since proved not to be warranted by subsequent events, but business and industry generally 'Tiad so far met the difficult position of to-day with unexpected strength. “There is little or no anxiety felt among people generally with regard to the stability and general soundness of the hanks and other large financial institutions,” adds the review. “They continue to hold the full confidence of the people, but unfortunately the same cannot be said of most of our Governments. The people have comb to the conclusion that political ideals have been, and are still, advanced in order to postpone action which is absolutely necessary if a condition of crisis is lo be avoided. They l’eel that many politicians are placing sectional interests and desires, to safeguard their seats in Parliament, on a higher level than the active and pressing needs of the country. Losing Confidence. “Not a few people are losing, or have lost, their confidence in parlia- . mentary representatives, and are commencing to look around for soma method which will produce better results than the Governments have afforded in recent years-’’-