A FINANCIAL ISHMAEL

Evening Post, Volume CXII, Issue 152, 24 December 1926, Page 7

A FINANCIAL ISHMAEL

AUSTRALIAN BORROWING.

With regard to Mr. Lang's suggestions of borrowing in New York instead of London, and with regard to the possibility of his disturbing ths Australian internal loan market by oporating independently of the Australian Loan Council, the following review by a Sydney paper of the State's financial outlook is of interest: "After the State's current expenditure has been brought within ita income tho next thing necessary will bo to reverse tho present Ishmaelite policy which keeps New South Wales out of tho Federal loan pool. This is injuring both the State and thci Commonwealth. For with Now South Wales, which contains 40 per cent, of the Australian population, borrowing in cut-throat competition with the other 00 per cent., we represent a kingdom divided against itself. Both parties suffer. And this State, being the smaller, must be the greater sufferer. Evon the weakness of tho smallest Stats, were it in ». simitar position, wtwM jofiect

injuriously upon tho Federal credit. How much more, therefore, must it bo affected by tho largest remaining isolated and adrift? Not only would tho .strength of 100 per cent, of tho people in the loan pool be greater than that of the CO per cent, now constituting it, but tho credit of all could bo buttressed by a common redemption fund, on tho reality of which investors could place a reliance that they cannot place on any individual State, and least of all xipon the redemption fund of i New South Wales."