American View 1929. American View 1929. American View 1929.
I wonder how much things have changed in a little under one hundred years? Debt, cost of wages, tariffs, unions, and governments were all of concern in 1929, especially to foreign investors in our young country.
This interesting article was produced in one our our two local newspapers of the day, the Southern Districts Advocate:
AS OTHERS SEE US…
THROUGH YANKEE GLASSES.
Southern Districts Advocate
4 July 1932 – P1
We have come across an article which appeared in an American paper during 1929, and while the high and mighty tone gets on our nerves, there is much of common sense and sound prophesy in the writings. The article is by Frederick G. Stickels, former County Sheriff of Lane, Oregon, America, and, at time of writing, in Australia.
He says:
In some of my letters to friends at home I think I have mentioned that for the past ten years the people in this country have enjoyed a false prosperity; due more or less to the great influx of borrowed money. Many Americans in business here during that period have been, owing to their more progressive business methods, quite successful.
I believe I have also stated that this is a widely unionised country and that a basic wage is fixed by industrial courts and tribunals for even the farm laborers and domestic servants. And that this is one of the greatest if not the worst place on earth for industrial disputes and strikes. It is needless to say the tax burden is now so great, taken in connection with industrial awards, and general business depression, the breaking point is about reached.
And now I want to tell you something about Australia’s debt.
Debt Large.
Australia is a country approximately the size of the United States and the only continent wholly occupied by one nation. According to figures dated December 31, 1928, the population was then 6,336,777.
The debt of the Australian Commonwealth and States on June 30, 1928, was, according to recent figures, £1,094,974,058, or something over five and a quarter billion dollars. Of this amount about one and quarter billion dollars is owed by the Federal Government, and three and one-half billions by the eight separate States and territories forming the Commonwealth.
This is an indebtedness of approximately $850 per head, while in the United States the indebtedness is, I think, $160 per head; and in Great Britain £168 per head, or a little less than in Australia.
It is interesting to note that of this debt £524,806,262 is owed in Australia, and £570,167,796, or more than one-half is payable to overseas creditors. Of the amount owed in outside countries about $246,000,000 represents American investments in Australia, largely confined to Commonwealth and State securities. In 1923, the overseas proportion was 46.34 per cent. Five years later that proportion was 52.07 per cent.
The debt on account of the Stales has increased, in five years, by £175,214,242 and, of this amount, £110,471,256 is the increase in debt overseas.
No Oil There.
Australia has no oil like the United States, no timber, fish, and fur like Canada; her gold is pretty well dug up; the great coal industry is practically dead, caused by strikes, lockout, substitutes and loss of four persons to the square mile, and 1,500,000 of her people receive charity.
The two great industries are wool and wheat, and these comprise 25per cent of the country’s income, and 50 per cent of the Commonwealth exports.
Two-thirds of the population of the country live in the cities, and large towns near the coast and the other third are doing their best to get there.
During the past eight years £16,000,000 have been lost on Government railways. Three States of the Commonwealth are now receiving annual financial aid from the Federal treasury.
The labour situation in Australia is bad, much unemployment, constant strikes and great dissatisfaction with rulings of both Federal and State arbitration courts. In many instances the labour unions have actually defied the courts, and at the present time the government in power proposes to abandon federal arbitration, except for maritime and waterside workers.
Production Costly.
The cost of production here is so high articles cannot be produced and sold at a profit on foreign markets, competition with similar goods offered from other countries. The tariff on sugar prohibits its importation, and this product manufactured here sells at an exorbitant price. For several months potatoes have been selling at around $100 per ton.
Expenditures have risen because of industrial awards, ameliorating social legislation, bounties paid many industries and increasing interest charges. At the same time the national income, and the income of the people as a whole in wheat and wool markets and falling off of business in general.
At the present time the Federal Government of Australia is conservative, but by a small majority. Labour is ever knocking at the door, and it is not known for sure but that a change may soon come. There is a lot of dissatisfaction, unemployment, actual want, starvation and distress.