AUSTRALIAN LOANS

Evening Star, Issue 19410, 19 November 1926, Page 4

AUSTRALIAN LOANS

MR BRUCE ANSWERS CRITICISM LONDON PRESS COMMENT. Frees Association—By Telegraph—Copyright. LONDON, November 17. The ‘Daily Telegraph’s’ city editor says: “It is fortunate that Mr Bruce is here to deal at first hand with the criticism of Australia’s finances, and we congratulate him on removing some of the misconceptions. There never has been any question that a rapidlygrowing country like Australia had to develop in advance of its immediate needs, but there is a genral impression that some of the ‘ reproductive ’ expenditure has not always been prudent. Though the railways pay working expenses and the maintenance of the lines in good repair, and meet nearly all the interest charges on their cost, they still result in a loss to the States. As an instance, New South Wales has a deficit of £1,274,000. Lenders will keenly watch the workings of the Loan Council. If it controls the borrowings of the various States It will remove their doubts. We are assured that future prospectuses will contain more information, and if each loan carries a sinking fund extinguishing it at the due date there will be less room for criticism of the financial policy of the States and the Commonwealth.” The ‘ Morning Post says: The bankers and commercial men present were manifestly impressed by Mr Bruce’s straightforwardness and directness, and by the equally forcible observations on the same subject by Mr Andrew Williamson, whose past speeches show that he holds no brief for the Australian Governments, but is disturbed by the general attack on Australian finances. Mr Bruce has practically undertaken that fuller information shall be given in the prospectuses, and this seems almost to foreshadow New South Wales joining the Loan Council. Bankers and investors would welcome such a step.”