"BRAKE ON VALUE OF POUND"

Press, Volume LXXXVI, Issue 26199, 24 August 1950, Page 7

"BRAKE ON VALUE OF POUND"

COMMENT ON EFFECT

OF LOAN Melbourne, August 23. ‘The IOO.OTOOOO-dollar loan will Set immediately as a slight brake on thi vdlue of Australia’s pound, which U still bolting downhill.” says the Melbourne “Herald” financial writet. ‘Eventually it will have a more lAfreaching effect, as we shall reap l the fruits of the gteat development programme with increased power—now our major lack—and a vast expansion of output in all kinds of industry. Tills will raise our living standard* in the same Way as the great indue* of British capital and equipment fast century brought Australia’s living standard up to one of the highest in the world.

One of the causes of continued Inflation is that we are trying to use limited manpower and materials for capital goods and investment project* at the same time as we need them to increase the immediate output of consumption goods. By getting some df our capital equipment from abroad, we will ease the pressure in some directions locally, and allow a slijht diversion of local men and materials —or at least prevent dur capital industries from making an even greater drawing on the resources needed td satis.y consumers’ needs. “By itself this will not have a large anti-inflationary effect, yet greater production a man is still the key to stopping the rot of the pound. “Large quantities of imports from sterling and other soft currency countries are still required to supplement local production. At present ara getting nothing for much of our wool clip except a growing bank balahcf fsoofloao«>.” that has now

World Shot Put Record.—Jim Fuchs, United States, whose shot put of 17.88 metres was recognised yesterday as tfii world record, to-day bettered this with a put of ’7.95 metres, at Eskiltuna. In a second record-breaking performance, Gdotge Rhoden, United States, rzn 400 metres in 45.8 sec. The official record is 45.95ec, made by Herb McKinley 1A 1048.—Stockholm, August 22.