COSTS OF PRODUCTION.
At the same time, Mr. Williamson emphasized the need for the control now exercised by the Loan Council over the bor-
rowings of all the Australian States, while he drew attention to a point which undoubtedly goei to the root of the economic situation in Australia—namely, the ever-rising costs of pro- duction. Wages, said Mr. Williamson, are fixed by Award Boards, Federal and State, to meet an arbitrarily fixed standard of living, the maintenance of which is immediately affected by each rise in wages or increase in the duties imposed on imported manufactures in order to protect the, secondary industries. Increased costs of production are passed on the consumer, thus increasing the cost of living and n tathi,g a further rise in wages, which again reacts in a similar am/ and again puts up the price of living, and so on ad in nitum. All this, said Mr. Williamson, is in glaring conflict with the fundamental principles of economies. His protest is amply justified and is applicable to other countries besides Australia. _
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