COMMONWEALTH DEBTS.

Auckland Star, Volume LV, Issue 116, 17 May 1924, Page 7

COMMONWEALTH DEBTS.

ENORMOUS INCREASES. ADVICE FROM FINANCIER. MELBOURNE, May 16. 1 In the Federal House of Representatives, Mr. H. E. Pratten, ALP. for Martin, N.S.W., speaking of Australia's economic position, said that the public debt since 1870 oh an average had doubled every ten years. In 1860 it amounted to amounted to £12,000,000, and at present it totalled £950,000,000. It was the duty of those responsible for financial affairs to take a tighter grip of the reins. Increase of population probably would relieve the load of debt, but while the debt increase since 1870 had <been 3000 per cent, the population increased only 235 per cent. He believed the national wealth of Australia from all sources totalled approximately three thousand millions. A comforting feature was the growing tendency to seek money within Australia's borders instead of going abroad. Of the Commonwealth debt more than -two-thirds was obtained in Australia, the rest in London. Of the States' debts more than two-fifths were obtained here. ', Since 1915 66 per cent of the loans were raised in Australia, the remainder putside. The rate of interest paid in the past decade increased from £3 12/6 to f5 per cent for Commonwealth and £3 12/ to £4 7/6 for State loans. During the life of the present Parliament loans totalling £200,000,000 were falling due. The time was approaching when interest charges, compared with ten years ago, will have increased 75 per cent. No serious attempt has hitherto been made to face the position. New South Wales with a gross indebtedness of £180,000,000 has a sinking fund of £400,000. The Commonwealth has done a little better, providing a sinking fund of a half per cent. For Australia to keep out of further debt her exports should exceed imports to the extent of the, interest on her debts abroad, in addition to amounts spent by Australians abroad, together with other services and remittances.-— (A. and N.Z. Cable.)