RECORD INCOME.

Auckland Star, Volume LXIX, Issue LXIX, 21 September 1938, Page 9

RECORD INCOME.

EXPERTS , REVIEW.

PROSPEROUS AUSTRALIA.

HEALTHY INTERNAL. ECONOMY

(Prom Our Own Correspondent.)

SYDNEY, September 15.

Messrs. Colin Clark and J. G. Crawford, two economiste, have made an analysis which shows that Australia's national income for 1937-38 was a record—£Boo,ooo,ooo. Allowing for changes in prices and population they find that real income per breadwinner in recent years has shown a steady advance. They observe that a policy which will mitigate, or even overcome, a depression arising frwm the fall in export income, is a planned expansion of public works to keep pace as far as possible with the decline in export income.

Tendency to borrow to purchase land and increase areas under cultivation-is always apparent in favourable seasons when high prices are ruling. Added impetus was given to this movement la«t vear.

Banking resources will require to be conserved if legitimate requirements of the farming and trading communities are to be met without undue strain during the noxt few months.

A period of expansion in industry followed as a natural sequence to the favourable financial conditions existing last year, and the banks' advances have been higher as a result of assistance to borrowers covering a wide field of industrial activity.

Business turnovers in Australia have been well maintained, and internal economy is healthy compared with 'other countries.

The high level of imports has been caused mainly by expansion of secondary industries resulting in extensive capital expenditure on new machinery and factory plant, which is unlikely to be .maintained in the coming year. >