AUSTRALIAN FINANCES

Dominion, Volume 20, Issue 16, 14 October 1926, Page 11

AUSTRALIAN FINANCES

CRITICISMS REPLIED TO BY FEDERAL TREASURER

COMMONWEALTH DEBT SUBJECT TO SINKING FUNDS

VALUE OF PUBLIC AND PRIVATE ASSETS

The Federal Treasurer, replying to the criticism of 'Australian finances, says the Commonwealth debt is subject to sinking funds, and that most of it is redeemable in Australia,. He adds that the publicly-owned assets and private wealth represent more than four times the public debt and private and foreign debts.

BY Tblegbath.—Press ASSOCIATION.- COPYRIGHT.

Sydney, October 13. Dr. Earle Page, Federal Treasurer, referring at Canberra to the hostile criticcism of Australian finances contained in a pamphlet recently issued in London, said: "We are not ashamed of the large figures of the Commonwealth debt. Of a net debt of £339,000,000 at the end of last financial year approximately £300,000,000 represented the war debt. We do not accept blame for placing upon the shoulders of a small population of six million people this heavy burden incurred on behalf of the whole Empire. "Almost all the debt is redeemable in Australia, except a funded debt to the Imperial Government of £92,000,000, which carries terms of redemption and interest far more onerous than were imposed bv the United States in respect of the British debt, or by Britain in connection with the debts of France and Italy.

revenue-producing works. “The war debt is subject to a statutory sinking fund, which will reaeem the whole debt in fifty years, £28,000,000 have been redeemed in this manner in the last four years. The other part of the Commonwealth debt is also subject to a definite sinking fund, which, like the war debt, is payable from annual revenue. This debt, amounting to £70,000,000, was spent mainly on Post Office works, which were immediately revenue-producmg, the construction of the Federal Capital City, revenue from which will pay the whole capita] cost within a short period, and other works, which are creating valuable public assets and will stimulate and assist the settlement of men and women of British stock tn Australia. Every loan raised by the Loan Council is subject to a sinking fund - THE STATE DEBTS. “The apparently excessive figures of State debts must be examined m the light of the purposes for which the money was raised, and the special needs' and circumstances of this undeveloped continent. Nearly half the State public debt was floated in Australia, and more than two-thirds ex-' pended on railways, tramways, water supply, harbours, rivers, and similar '"'“Regarding the general economic position of Australia, Dr. Page quotes statistics showing that the publiclyowncd assets of the Australian Government and public bodies amounted to

£725,000,000, and private wealth to £2,425,000,000, representing more than four times the public debt and private and foreign debts, which were estimated at £700,000,000. TAXATION IN QUEENSLAND Brisbane, October 13. The Auditor-General’s report shows that receipts from Stat* taxation last vear equalled £4 15s. 4d. per head of population, compared with £2 2s. 9d. in 1915-16, and interest on the public debt for the same period increased from £4 4s. 7d. ner head to £5 6s. 4d. In the Assembly the Government introduced a Bill increasing cheque duty by 100 per cent., to 2d. This is estimated to yield £50,000 annually. COMMONWEALTH BANK PROGRESS SINCE 1912 (Rec. October 13, 5.5 p.m.) Sydney, October 13. Mr. Kell, ex-governor of the Com monwealth Bank, says that the bank started from nothing in 1912, but its acnmulated figures, including the note issue department, is now approximately £150,000,000, while funds in the Savings Bank alone total £46,000,000. The Government loans ou the bank registry total £409,000,000. and the interest distributed by the bank annually on these loans totals £21,000,000. The bank has floated for the Commonwealth Government in Australia loans totalling £330,000,000, at' an average cost of 6s. per cent., while the cost of floating Australian loans on the London market is 40s per cent. STATE INSURANCE PROFIT OF NEW SOUTH WALES OFFICE Sydney, October 13. The Treasury Insurance branch, which was recently absorbed by the Government Insurance Office, for the past year showed a profit of £ao,ooo.