16 AUGUST 1930, Page 32


If, however, the economic situation in Australia is ever to become really sound, there will also have to be a clear recog- nition by all the political parties of the necessity for lowering costs of production and for getting back to an economic wage. In the course of an address recently delivered before the Loan Council at Canberra, by Sir Otto Niemeyer, it was pointed out by the speaker that prices in Australia had not followed the downward trend of the present world-wide movement, but had remained at an artificially high level. The costs of production, Sir Otto said, were excessive and must be brought down. Australia, he declared, must full in line with the rest of the world and must be prepared to obey economic laws. Either this would be accomplished voluntarily or it would be forced on Australia by the inevit- able pressure that the economic laws would impose.