Wednesday, October 29, 2008

Memo: Kevin Rudd/ Wayne Swan/ Treasury/ Reserve Bank of Australia

In the event that the global economy collapses and our Chinese lifeboat begins to leak like the Titanic, call in the clowns . Seriously, forget our great and powerful ally , ring the man with the top hat in the big top . In l933, during the Depression in Australia, the long established Wirths’ Circus, a national institution , outlined a plan to boost the sick economy.

Under the heading SAVE AUSTRALIA , the scheme was explained in a circus souvenir brochure. Oddly enough , the grand proposal depended on selling rice to the Chinese . Australia, it said, should borrow $70million from Britain and put the 500,000 unemployed on 100 acre irrigated farms in the Murrumbidgee River , especially in the Leeton and Griffith areas. It described Australia as the finest growing country in the world , especially for rice. It said our ‘mighty rivers”, running through four states , provided 3000 miles of watercourse . The longest fresh waters in the world, according to Lord Stonehaven, longer than both the Mississippi and Missouri by nearly 1000 miles.

Alas, much of that mighty waterway has gone down the gurgler. However, back in the Depression , Wirths’ Circus was convinced a massive expansion of irrigation to grow rice was the way out of the troubles. It cited the fact that in Moree , NSW, Chinese shopkeepers bought rice from Leeton for $40 a ton and exported it to China where it fetched $60 a ton . There was a massive market for rice in China, India, Japan , Java and Russia . Such a huge demand made rice more valuable than gold. This extravagant statement probably contributed to the ludicrous notion that Australia should be the food bowl of Asia .

The circus pointed out that Russian wheat farmers had damaged Australian producers in l931 when they sold wheat for one shilling (10 cents ) a bushel . By growing rice in Australia , Russia would become a customer, not a competitor , as it could not grow rice. To promote the rice proposal , Wirths’ advocated an advertising campaign featuring huge posters like ones used in Melbourne to promote the tour of Russian Cossack riders who performed in the circus .

The souvenir brochure contained another two pages headed BOOST AUSTRALIA with items supplied by the Australian National Travel Association. One pointed out the rice growing industry was extremely successful , the first commercial yield in l924-25, 16,140 bushels, proving to be far superior than the imported product. The l929-30 crop had risen to 2,000,000 bushels of paddy rice, producing about 39,000 tons, more than the local demand, about 25,000 tons. Dealing with the make up of our population, 6,500,000 , 97 per cent were of British stock , rapidly developing into a distinctive race- tall, strong and athletic . There were about 62,000 fullblood and l8,000 halfcastes (sic). Of these ,about 40,000 were said to be nomadic and still living in remote , unsettled areas of the interior and Northern Australia “in the primitive style of the Stone Age , using the firestick , stone knife and tomahawk.” Most of the remainder were employed on sheep and cattle stations , or on “ government supervised camps”.

On the sporting side , Australians could indulge in all kinds of activities, more intrepid ones doing a bit of pig-sticking, buffalo and crocodile shooting . Clearly, a massive rice growing project in Australia is now not on . But how about mung beans ? Around the time of NT moves for self government , when not one mung bean was grown in the Territory, a trade mission toured Asian countries asking if they would buy our produce , including invisible mung beans . Strange as it may seem, all countries replied in the affirmative . Somehow , the idea of a mung bean led recovery does not seem feasible , nor does it sound overly sexy
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Cyclops

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