TREASURER LYNCH' S WILLING SUGGESTION

The suggestion by Federal Treasurer Lynch that a total wage freeze would help solve Australia's finance economic problems provides further disturbing evidence that Australia is on an accelerating disaster course. Addressing a meeting of businessman in Brisbane last Friday, Mr. Lynch said: "If there was zero indexation - a complete pause on wage increases over the next 12 months estimates available to the Government suggest the rate of inflation in the next June quarter would be 0.7 per cent. This would be equivalent to an annual rate of inflation of around 3 per cent."

As we have explained ad nauseum, while it is true that wage increases intensify the problem of inflation, they are not the basic cause. If they were, the wage "freezing" policies tried in the United States and the United Kingdom in the past would have ended inflation. But, as we predicted at the time, these wage "freezes" merely slowed price rises temporarily and subsequently resulted in another great surge in the inflation rate.

Mr. Lynch's suggestions of a wage "freeze", even though the Treasurer subsequently said that he was not actually recommending this policy, is like music in the ears of the Communist revolutionaries, who are telling wage earners that they are now cursed with a Government determined to drive down their standards of living. Older Australians will recall how during the Great Depression of the 'thirties, wages were not merely "frozen"; they were drastically reduced. There was certainly no inflation, but unemployment rose dramatically and the production system was slowed down to a fraction of its potential.

If Mr. Lynch and his Treasury "advisers" insist on pursuing their present policies, unemployment will continue to increase, as it is doing all the time, the production system further destroyed, and the ideal conditions provided for open revolution. Mr. Lynch told his Brisbane audience that Australian businessmen should "strike out for themselves", and get in "on the ground floor" of the "coming economic recovery". Mr. Lynch is inviting businessmen to increase their financial indebtedness, to increase production for which there is a limited market.
Not being fools, businessmen have, generally speaking, been declining to do this for the past six months.

What is required, of course, is increased, not decreased, purchasing power in the hands of consumers so that they can buy the actual and potential production, which the free enterprise system can so easily produce. A start could be made with the slashing of Sales Tax, bringing a whole range of prices tumbling down immediately, and the use of selective Consumer Price discounts on those items used to adjust wages. If this were done, there would be no need for further wage increases. Inflation would be reversed, and the Marxist conspiracy would be dealt a deathblow in Australia.

We wonder if Mr. Lynch and his colleagues have ever pondered on the fact that the Marxist subversives are amongst the strongest opponents of consumer price discounts?

MR. AL. GRASSBY DISCOVERS MORE 'RACISM'

If the Australian Government cannot rid itself of the over paid ($36,000 per annum) "commissioner for Community Relations," Mr. Al Grassby, it should at least tell him to stop his incessant "stirring" about alleged "racism" in Australia. One of his latest discoveries is that there is a type of "apartheid" in Northern N.S.W.; that the Europeans and the aborigines insist on "going their own ways". Presumably Mr. Grassby and his staff have not noticed that different groups of Europeans also go their own ways, segregating themselves into different types of suburbs!

We understand that Mr. Grassby does not have any aborigines living next door. Mr. Grassby has now "discovered" that a "racist language" is developing among school children. Words like "wog", "dago" and "pommie" are in daily use, complains Mr. Grassby. These and similar terms have been used for generations in Australia without much harm to anyone. Mr. Grassby charges that many schools ware "failing to meet the challenge of a multi-racial society."

Like the "melting pot" theory so popular in the U.S.A. in the past, "the multi-racial society", or the pluralistic society", is another type of ideological fad which in reality produces friction. The way to avoid friction is to ensure that a nation is as homogeneous as possible.

Like a cracked record, Mr. Grassby keeps mouthing the meaningless cliché about "the family of the nation". All standard dictionaries describe families as groups with common ancestors. A family also implies a common culture. No doubt Mr. Grassby and his friends would like to be able to prosecute those who advocate the maintenance of a homogeneous people and a common culture. Provision was made for this in Mr. Whitlam's original Race Relations Act, which Mr. Grassby helped to frame. Mr. Grassby looks forward to the day when another Labor Socialist Government might be able to restore the "teeth" to the Act. In the meantime he and his staff (over 50 at the last count we saw) waste the taxpayers' money by "discovering" and documenting more examples of "racism.

In a list of research sources Mr. Grassby lists the N.S.W. Jewish Board of Deputies, Dr. James Warburton of the University of Adelaide, writing in the South Australian Journal of Social, Political and Cultural comment", Mr. K.D. Gott's "study" of Mr. Eric D. Butler and The Australian League of Rights, and material collected by Mr. Graham Williams of Fairfax Research Team. Mr. Grassby also states that material has been collected by his staff from the following organisations: "National Australian Association", "British Australian Assoc.", Westralian Nationalist Movement", "Birthright Campaign", "Immigration Restriction Council", "Immigration Control Association" "Truth and Liberty Mission", and "Save Our State Campaign (Qld.)".

It would be instructive to learn from Prime Minister Fraser and his colleagues why taxpayers' money should be used to finance Mr. Grassby and his bureaucrats to prepare reports on organisations similar to those listed. The Government may not be able legally to dismiss Mr. Grassby, but we suggest that as part of the Government's much publicised economy drive, it might drastically reduce Mr. Grassby' s Department.

BRIEF COMMENTS

Last week saw another triumph of the human mind when, by the rigid application of discoveries concerning natural laws, sophisticated equipment was placed on Mars for exploration and the sending of photos back to earth. One of the scientists engaged on this project said, "It is really mind boggling". But much more mind boggling is the fact that while man can send cameras over millions of miles to send back photos of the planets, he cannot adjust his financial symbols to enable him to control his economic system and to purchase that which he can so easily produce. J.D. Malan in "Natural Cost And The Ownership of Money" (50 cents posted) reveals how financial rules do not reflect natural laws and why there is progressive debt, inflation and social friction.

We wonder if Prime Minister Fraser noted the finance economic situation when in Japan. Japan has been listed as one of the nations bringing inflation "under control". We have observed on a number of occasions the Japanese managed a reduction in a high inflation rate by a restrictive financial policy, this resulting in large-scale business bankruptcies. We also predicted that with "reflation", prices must rise again. Financial credit expansion resulted in a massive increase in economic growth for the first quarter of this year, the G.N.P. increase being 3.5%. But now consumers are threatened with a new round of price rises from electricity to rice. The Japanese press refers to "the threat of resurgent inflation".

The famous Jewish ex-Communist writer, Arthur Koestler, has written an important new book, "The Thirteenth Tribe". In an introduction to a new review of the book by prominent Melbourne Jewish writer, Newman Rosenthal, "The Herald", Melbourne July 22nd, says that Koestler "develops a startling and controversial theory about the origins of the Jewish people" But Koestler only confirms what Eric Butler mentions in "Censored History" (80 cents posted, 4 copies for $2.00 posted): that the great majority of modern Jews are not of Semitic but of Turko-Slav origin. Newman Rosenthal does not like the Koestler work and his review is misleading and superficial. Although Koestler argues that those inhabiting Israel, regardless of their chequered origins", possess the requirements of a nation, his work deals a shattering blow to the mythology of Political Zionism.

Mr. Andrew Peacock has felt it necessary to irritate the Government of Indonesia once again by criticising the method by which Indonesia has taken East Timor into the Indonesian Republic. Only a handful of other nations have openly criticised Indonesia. Numbered amongst these are Communist China, Angola and Mozambique.