6. The Key to Recovery

In a statement published in the Melbourne Herald of 16 January 1935 Prime Minister Lyons stressed his Government’s commitment to private enterprise as the ‘chief agency’ for ending unemployment.

The Prime Minister disdained unorthodox methods of ‘credit expansion’, considering that any such experimentation could have only a detrimental effect on the national economy. Sound methods of finance, he said, engendered the confidence that made it possible to borrow large sums of money at low rates of interest. Therefore, any program of public works would be funded by orthodox means. As far as possible, those works would be selected for their reproductivity.

It is significant that the Prime Minister qualified his statement about reproductivity. Previous experience had shown that few relief works were fully reproductive under the definition the Commonwealth Bank Board had tried to enforce. The approved schemes – for water supply and sewerage installation, along with some road and rural development projects – were labour intensive and, it could be argued, provided immediate financial returns on the sums invested.

Although capable of providing work for a large unskilled labour force, afforestation schemes had not previously been considered as properly reproductive because their financial returns could be delayed for decades. However, a national afforestation plan was discussed at a conference of State and Commonwealth forestry officials held in Melbourne in December 1934. Early in 1935 the Commonwealth Government sought and received submissions from the States on forestry projects to provide relief work for the unemployed. A national three-year afforestation plan was subsequently established, with the Commonwealth subsidising the contributions made by the States (with the exception of South Australia and Tasmania) on a pound-for-pound basis.

The plan met with the wholehearted approval of State premiers, but as a condition of subsidising the States in this way, the Commonwealth Government stipulated that 20% of those selected for work in the forestry camps should be between the ages of 17 and 21 years. The reasons for this were twofold: to provide young unemployed men with material benefits, but also to remove them from depressed industrial environments where they could be susceptible to radical influences and to place them in work camps in remote rural areas where they were closely supervised.

If domestic politics is apparent in the establishment of afforestation camps, political developments overseas are reflected in legislation passed by the Commonwealth Parliament early in 1935 allocating funds to the long-neglected Department of Defence. For example, the Appropriations (Works and Services) Act 1934 provided £102 956 to Defence while the Loan Appropriations (Unemployment Relief) Act 1934 provided £41 235.

In his opening statement to a conference of selected employers and employee organisations on 22 January 1935, the Prime Minister emphasised his Government’s view that while a supportive public works program was needed, it should at no time compete with private enterprise. He continued by saying that the only permanent solution to unemployment lay in the stimulation of primary and secondary industries, with the practical pursuit of that outcome being the stated object of the conference. In reality, as Schedvin has pointed out, market forces rather than any deliberate policy on the part of the Lyons Government would largely determine the scale and rate of Australia’s economic recovery.[24]

As a result, some 300 000 Australians remained unemployed in 1935 (compared to a peak of 500 000 in 1932–33), of whom only about 55 000 were in receipt of relief work.[25]

A contemporary observer of the Great Depression found that in New South Wales as the numbers of those out of work decreased in 1935, the average period of unemployment experienced by individuals increased considerably. And, while the number of those engaged in relief work declined by 23% during the financial year 1935–36, the number of those receiving relief in the form of food rations rose by 7%. This led him to conclude:

It is an unwritten law that the effects of economic maladjustment shall be borne in the first place by those unfortunate individuals for whom no place can be found in the productive process...It is now a commonplace that, even in the most prosperous times, there are not enough jobs to employ all the working population.

But A G Colley was writing in 1939. Total war would soon alter that situation.[26]

CORRESPONDENCE FILES, ANNUAL SINGLE NUMBER SERIES, 1903–38A1
Recorded by:1903–16Department of External Affairs [I] Melbourne (CA 7)
1916–28Department of Home and Territories, Central Office (CA 15)
1928–32Department of Home Affairs [II], (Central Office) (CA 24)
1932–38Department of the Interior [I], Central Administration (CA 27)
Quantity:454.65 metres (Canberra)
This series was described in Chapter 1.
No. 4 Camp – now known as Parkes Barracks – unemployed camp, 1934A1, 1934/4662
Unemployment and relief work – Canberra, 1931–35
This item deals with the alleviation of distress in Canberra and contains information about a deputation from the local branch of the Australian Workers’ Union to the Minister of the Interior.

The item also contains a report from September 1935 in which relief work rates and conditions in Canberra are compared with those in the States.

A1, 1935/2405
Unemployment relief loan, 1932–35
This item contains information about proposals for public works to alleviate unemployment in the States.

It includes, for example, information on the expenditure of Commonwealth funds for public works in Tasmania, including roads, water supplies, flood protection, railway deviations and an aerodrome, and the development of tourist roads and resorts.

It also contains extensive correspondence from State premiers proposing public works schemes to relieve unemployment and requesting the allocation of funds by the Commonwealth.

A1, 1935/3349
Unemployment relief – British scheme – State subsidies of interest and ‘improved unemployment grants’ to local authorities, 1935
This item contains part of the Commonwealth Treasurer’s 1935–36 Budget speech in which he announced a grant of £100 000 to local authorities for use in public works programs.
A1, 1935/10055
 
CORRESPONDENCE FILES, CLASS 1 (GENERAL, PASSPORTS), 1892–1970A659
Recorded by:1939Department of the Interior [I], Central Administration (CA 27)
1939–45Department of the Interior [II], Central Office (CA 31)
1945–50Department of Immigration, Central Office (CA 51)
Quantity:101.255 metres (Canberra)
This series contains the general correspondence files of the Department of the Interior [II] until late 1945, and, from mid-1945, the miscellaneous and passport files of the newly-created Department of Immigration.
Unemployment relief statistics for Labour Report, 1934–42
This item deals with the situation in the Federal Capital Territory (FCT) and the Northern Territory where the Commonwealth Government was directly responsible for the funding and provision of unemployment relief.

The item illustrates the change in the way relief was distributed to the unemployed. For example, in the FCT the practice of granting food rations as sustenance for the unemployed was altered to supplying cash payments of equivalent value to the rations.

It also contains statistical information about spending on unemployment relief and the population of the FCT dependent on it. The item also deals with the provision of food rations in special cases, the funding of work in lieu of rations for itinerants, the subsidising of the Canberra Relief Society for the supply of firewood to unemployed camps, and the provision of railway fares to destitute persons.

This item also contains a report from the Northern Territory Administration which provided details of expenditure on unemployment relief. For the financial year ending 1934–35, approximately £3 678 was spent on unemployment relief; 13 relief workers were registered; and 69 people were being issued with rations. By October 1935 , the number of registered relief workers had increased to 15 while sustenance rations were being issued to 64 men and their 14 dependants.

A659, 1942/1/5389
 
CORRESPONDENCE SERIES, ALPHABETICAL PREFIX, 1899–1983A518
Recorded by:1928–41Territories Branch, Prime Minister’s Department (CA 822)
1941–51Department of External Territories [I], Central Office (CA 42)
1951–56Department of Territories [I], Central Office (CA 60)
Quantity:241.57 metres (Canberra)
This series was described in Chapter 2.
Territories – information re numbers of unemployed in Territories, 1932–33A518, CB112/1
 
CORRESPONDENCE FILES, MULTIPLE NUMBER SERIES (THIRD SYSTEM), 1901–50A461
Recorded by:1934–50Prime Minister’s Department (CA 12)
Quantity:143.82 metres (Canberra)
This series was described in Chapter 1.
Schemes for relief of unemployment – South Australia, 1925–39
This item contains information about the alleviation of unemployment in South Australia. It includes a letter from Prime Minister Lyons in January 1935 to the Premier of South Australia, notifying him that the Commonwealth would supply £125 000 to his State under the Loan Appropriation (Unemployment Relief) Act 1934. Of that amount, £98 550 pounds was to be spent on flood prevention works on the Torrens and Sturt rivers with the balance going towards water supply works at Tweedvale, Streaky Bay and the Tod River.
A461, D351/1/9
Schemes for relief of unemployment – Victoria, 1932–38
This item contains a submission from the Premier of Victoria to the Under-Secretary for Employment which includes a complete schedule for a three-year continuous program of public works costing an estimated £5 502 000. The submission also includes an amended schedule for a 12-month program proposing that £2 000 000 be spent on various relief work programs.
A461, F351/1/9
Commonwealth works for the relief of unemployment, 1934–35
This item deals with a situation which arose in NSW, where men who had been given Commonwealth-funded relief work – of whatever duration – were then deprived of State benefits for a time afterwards. In addition, the men lost their places on the employment register by which they were allocated work under the ‘Work for the Dole’ system that operated in New South Wales. The end result was that for several months afterwards the financial situation of former relief workers was worsened because they had accepted Commonwealth-funded employment. The item includes the responses of the Premier of New South Wales:
…where any men are employed on relief works of short duration (10 days or less), they are entitled to be re-employed immediately in their previous relief employment without any further loss of time. Where, however, the duration of the employment is more than 10 working days, they are required to comply with the regulations governing the emergency relief work scheme, which state that applicants must be unemployed for at least two weeks before becoming eligible for employment under the Scheme.
A461, F351/1/10 part 1
Schemes for the relief of unemployment – afforestation, 1934–35
This item deals with a national plan of afforestation to provide work relief.

The Commonwealth offered to fund the plan on a pound-for-pound basis with the States, but stipulated that 20% of the money had to be used to employ men under 21 years of age. This presented a problem to the Premier of Western Australia who informed the Prime Minister that his State, due to the efforts of the Boys Employment League of Perth (a Government-subsidised employment agency) had a limited number of men between 17 and 21 available for part-time employment in the forestry industry.

This assertion led to some conflict between the WA Government and the Boys Employment League, because, as the secretary of the league pointed out to the Commonwealth Government, the reason the league could not get enough boys to go to the country was that it had been:

…so extremely parsimoniously treated that it could not afford to give boys fares nor could it provide for meals in trains, no clothing for indigents nor other ameliorations; consequently it is estimated that between 1500 and 1750 unemployed boys exist in the metropolitan area who would be placed were these ameliorations available.

The item also indicates that the afforestation program was reduced from three years to one year. The Commonwealth was to contribute £50 000 to New South Wales, £100 000 to Western Australia, £25 000 to Tasmania, £100 000 to Victoria, £30 000 to Queensland, £17 000 to South Australia, and £9 000 to the Federal Capital Territory. The States were to meet the Commonwealth contribution pound-for-pound, except for Tasmania which would contribute £5 000 and South Australia which was unable to contribute.

The item also provides an insight into the living and working conditions experienced by the young men sent to the forestry camps. Reports received from the States indicated that more than 5 000 men were employed on forestry projects, which would create an asset of vital importance to the nation.

A461, C346/1/2 part 1
National plan for the relief of unemployment, 1934–36
This file deals with the reality of policies to promote public works for the relief of unemployment in various European countries and in the United States of America.

It contains a study published by the International Labour Organization in January 1935 which reveals that generally the results hoped for from public works projects had not been achieved. The study identified a lack of coordination between the plethora of ‘responsible’ authorities as the principal reason for this failure.

A461, C351/1/10 part 1
Schemes for relief of unemployment – Western Australia, 1934–36
This item contains correspondence between the Premier of Western Australia and Prime Minister Lyons which culminated in an allocation of £68 500 under the Loan Appropriation (Relief Works) Act 1934 to assist the WA Government to provide employment relief. The schedule of proposed works, which had a total estimated cost of £137 000, included the provision of water supplies to 18 rural areas; sewerage works at Northam; work on the approaches to the Point Samson jetty; and construction of a bridge near Carnarvon.
A461, G351/1/9 part 2
Schemes for relief of unemployment – New South Wales, 1934–41
This item contains a letter of 10 January 1935 from the Premier of New South Wales to Prime Minister Lyons which states in part:
I desire to inform you that this Government continues to receive representations form local residents and bodies that the Hydro-Electric development of the Snowy River should be proceeded with.

The item also contains numerous letters from progress associations and town councils in New South Wales to their Federal members of Parliament and passed to the Prime Minister’s Department. These letters all ask for expenditure of Commonwealth funds on local facilities, under the Loan Appropriation (Unemployment Relief) Act 1935. The Prime Minister’s Department invariably responded that such requests should be directed to the NSW Government.

A461, B351/1/9 part 2
Federal coal for relief of unemployed, part 2, 1931–34A461, D321/1/1 part 2
Federal coal for relief of unemployed, part 3, 1934–39A461, D321/1/1 part 3
 
BILL FILES, 1901–97A2863
Recorded by:1901–70Attorney-General’s Department Central Office (CA 5)
Quantity:330.84 metres (Canberra)
This series consists of files containing manuscript drafts and proof and final copies (with manuscript amendments) of Bills at their first, second and third readings. It also contains correspondence about the preparation of Bills.
Loan Appropriation (Unemployment Relief) Bill, 1935
This item contains printed copies of the above Bill, which was passed by Federal Parliament in 1935.
A2863, 1935/2
 
CORRESPONDENCE FILES, MULTIPLE NUMBER SERIES (CLASS 401), 1912–42A664
Recorded by:1924–39Department of Defence [II], Central Administration (CA 19)
1939–40Department of Defence Coordination, Central Office (CA 37)
Quantity:10.08 metres (Canberra)
This series records general administrative activities of the Department of Defence. It is concerned with the coordinating and policy-making functions of Defence rather than with the Defence Forces.
Unemployment relief works, 1934–35
This item contains a Treasury Department communication to the Department of Defence advising that it had been allocated £102 956 from the Appropriations (Works and Services) Act 1934 and £41 235 from the Loan Appropriation (Unemployment Relief) Act 1934, as part of the Commonwealth’s attempt to provide unemployment relief.
A664, 474/401/593
 
GENERAL CORRESPONDENCE FILES SERIES, 1921–32CP103/11
Recorded by:1921–32Prime Minister’s Department (CA 12)
Quantity:14.7 metres (Canberra)
This series was described in Chapter 1.
Public Works – Appropriation (Works and Services) Act 1934 (Christmas relief) – Loan Appropriation (Unemployment Relief) Act 1934 – unemployment relief activities (foreign) (2 files), 1934–35
This double item contains information from the 1934–35 Estimates, specifically Commonwealth Government appropriations for work relief projects.

The item also holds a letter from Major Longfield Lloyd of the Commonwealth Investigation Branch addressed to the Parliamentary Under-Secretary for Employment, which was written in response to a request for information about the apparently successful adoption in Italy of a shorter working week to alleviate unemployment. Longfield Lloyd referred to an October 1934 speech by Mussolini, and placed a copy of ‘News Notes on Fascist Corporations’ (Rome, August-September 1934) on the file.

CP103/11, 773
Works – public – benefits and disadvantages as relief to unemployment, 1934–35
This item contains newspaper cuttings and correspondence on public works as an economically viable way to alleviate unemployment.

It contains, for example, an article from the Sydney Morning Herald of 4 February 1935 entitled ‘Public Works and Recovery’, in which Dr E Ronald Walker is quoted as advocating public works in times of economic depression. In the article Dr Walker stressed the need to be selective about the type of public works undertaken to avoid competition with private enterprise.

CP103/11, 758
 
CORRESPONDENCE FILES, 1922–97K279
Recorded by:1922–32Public Works Branch, Western Australia (CA 760)
1932–46Works and Services Branch, Western Australia (CA 971)
Quantity:175 metres (Perth)
Records in this series deal with a diverse range of activities undertaken by the Public Works Branch and its successors in Western Australia. The records contain correspondence, designs drawings, contracts, minutes and press releases.

Matters dealt with include administrative, finance and tender and quotation procedures; contract conditions; material specifications; instructions on the engagement of consultants; fire protection policy and standards; standard specifications and requirements of State and Commonwealth instrumentalities; and project files on various construction projects (including War Service Homes).

Financial Relief Act, 1934K279, 1934/119
 
FOLDERS OF CABINET PAPERS, 1901–41A6006
Recorded by:1976–81Australian Archives, Central Office (CA 1720)
1981–94Australian Archives, ACT Regional Office (CA 3196)
1994National Archives of Australia, National Office (CA 7970)
Quantity:9.18 metres (Canberra); smaller quantities in each State office; microfilm (all offices of the Archives)
This series is more fully described in Chapter 1. It was created by the National Archives of Australia (formerly the Australian Archives) to make access to Cabinet documents easier. It contains Cabinet papers, submissions and other material originally copied from departmental files.

Details of parent files are provided at the foot of the entries for each paper.

Date of unemployment conference, 1935
This item provides some insight into the Lyons Cabinet’s priorities for solving the unemployment problem.
A6006, 1935/01/04
Parent item
 
A461, D351/1/10
Unemployment proposals – afforestation, 1935
This item deals with a national afforestation plan to relieve unemployment.
A6006, 1935/01/04
Parent item
 
No longer extant
Relief of unemployment – Commonwealth public works, 1935
This item contains schedules of Commonwealth public works to the value of £250 000 intended to relieve unemployment. The schedules were submitted on request to Cabinet by the Parliamentary Under-Secretary for Employment, F H Stewart.
A6006, 1935/03/07
Parent itemNo longer extant
 
GENERAL CORRESPONDENCE SERIES (ARMY HEADQUARTERS), 1939–42MP508/1
Recorded by:1939Army Headquarters, Department of Defence [II] (CA 2671)
Quantity:133 metres (Melbourne)
This series was described in Chapter 3.
Purpose recondition of the Sutherland-Liverpool Road and Christmas relief to the unemployed, 1931–41MP508/1, 289/701/300
 
RECORDS AND REPORTS, 1941A11620
Recorded by:1941Parliamentary Committee for the Survey of Manpower and Resources (CA 719)
Quantity:2.34 metres (Canberra)
Formerly known as CP3/1, this series consists of correspondence, memoranda, statistical data, minutes of evidence, and reports that were for the most part compiled during 1941 by the Parliamentary Committee for the Survey of Manpower and Resources. After the committee ceased to function the series remained in the custody of Mr G Whiteford who had been the committee secretary. It was eventually transferred to the Archives Division.
Manpower and Resources Survey Committee – papers re unemployment and unemployment relief, 1935–37
This item contains various Commonwealth and State reports on the unemployment situation, including one focussing on non-government bodies endeavouring to relieve the unemployment situation.

According to Mr Whiteford, who prepared the report, the organisations generally believed that the unemployment situation was improving, although some exceptions to that were noted (specifically the number and training of males over the age of 18 years).

A11620, 99