A DANIEL STANDING ALONE

Evening Post, Volume CX, Issue 38, 13 August 1930, Page 10

A DANIEL STANDING ALONE

' The suggestion that Australia might find some more agreeable alternative to Mr. Scullin's "ruthless" Budget does not yet bear fruit. "Give us just a little oversea loan money," says one section of Australian thought; "give us enough external help—ration the borrowing, if need be—to ease the shock of passing from an overdose of loan to a condition of absolute self-contain-ment." But, hard though the experience may be, the abrupt transition from too-much-loan to no-loan must apparently be faced, because, according to yesterday's cablegrams, the State Treasurer of New South Wales, Mr. Stevens, declares that, under the agreement with the banks, "we shall not be able to raise any further loans abroad for public works and services for some considerable. time." This would appear to mean that London

will not lend to jnect interest on existing loans, nor to finance public works in Australia; but loans to meet maiming oversea loans might he in another category. "We" evidently means Australia, not merely New South Wales, for all the States seem to be loyal to the Federal Loan Council and its collective borrowing methods, so it would appear that Mr. Stevens's announcement of an indefinite prolongation of external nonborrowing covers the Commonwealth.

If the Australians can find moral consolation in this financial phase of the principles of "splendid isolation" and "total abstinence," well and good. Their psychological experience should be interestingly watched by New Zealand, in view of the fact that this country may yet, with its absurd railway construction proposals, blunder into a similar position. Compare Mr. Stevens's remark, "We are thrown on our own resources for capital' development," with the article by Mr. Burston (Melbourne "Herald") reviewed in another column. In the latter part of that article reference is made to compulsory self-reliance for capital development; and at the same time it is pointed out that, on the expendi-ture-out-of-revenue side, balancing of Budgets will not be enough. Remuneration payments must fall at an even more rapid rate than the fall in the cost of living". Also —apropos yesterday's cablegram concerning Australian railwaymen's wages—the railways are hopelessly inflated both on the pay accounts and on capital account, and there must be drastic reorganisation to meet losses known and capital losses still undisclosed.