TOWARD RECOVERY.

Auckland Star, Volume LXIV, Issue 74, 29 March 1933, Page 8

TOWARD RECOVERY.

AUSTRALIA'S STEPS.

MINISTER LOOKS BACK.

EASING OF DEBT BURDEN.

(By Telegraph.—Own Correspondent.)

WELLINGTON, this day.

"You will be. a little longer in reaching the point we have reached, because from what I hear conditions in Australia are a little better than here," said Senator Massy Greene, AssistantTreasurer of the Federal Government, when addressing business men at a meeting of the Wellington Rotary Club.

After describing the steps taken in Australia to meet the depression, Senator Greene remarked that nothing they could do would restore the national income. That must come through a rise in world prices, which they were helpless to achieve, but he hoped for results at the World Economic Conference that would relieve the burden of international debt. Thct was what the world was waiting for to make ,a start towards recovery.

Australia's problem had been complicated, he humorously explained, by some "political pets around the house," who had been put in their proper place. The Gove-umentV task was to ease the internal debt burden, which he claimed had been accomplished, and to restore the Commonwealth's credit. That had been clone by a combination of inflationary and deflationary methods. Internal loans of £557,000,000 had been converted to 'A'& per cent, and now the stock stood at a premium in London, although two years ago Australian 5 per cents were selling at £55. Unpleasant sacrifices had to be made in deflation, and it was right that when the poor and maimed were asked to make a sacrifice, the bondholder should share.

High Exchange Inevitable. But for interest reduction he was sure Australia would have been faced with a deficit of £40,000,000 ■ in revenue,

the banks would have come and said, "Not one penny more," and default would have stared Australia in the face. But they had conquered the position. Banking statistics and credit statistics were, better, business turnover was increasing, and unemployment was falling all the time. (Applause.) He considered a high rate of exchange on London inevitable, in view of the trade balance, and any attempt to control it would have made the internal debt position much worse, though it was bad enough. The net result of high exchange plus the issue of Treasury bills in Australia through the Commonwealth Bank, giving an additional impetus to internal trade, had undoubtedly helped the country. High exchange made the results of the farmer's labour show a better relation to his debtor position, and conversion had reduced the rate of interest, j

"Interest Lower Still." "We have not reached the bottom in respect to interest rates," he continued, "and the policy which the Commonwealth bank is following, in close cooperation with the Government (though we do not countenance political control of the bank) is to get the interna] interest rate lower still."

On the question of tariff negotiations Senator Greene spoke hopefully of being able to arrange an agreement for the mutual benefit of Australia and NewZealand.

Buckingham Palace, a mansion originally built by an Earl of Buckingham, Is a great house where the King, while in London, chooses to live. Windsor Castle is a palace of the Koyal Family. Sandringham and Balmoral are private country seats owned by the King.