DEBT SETTLEMENTS

Evening Star, Issue 20636, 8 November 1930, Page 19

DEBT SETTLEMENTS

AUSTRALIAN REPUDIATION TALK The recent report of the Committee on Unemployment ahd Wage Reduction of the Australian Council of Trades Unions recommended the establishment of an economic council to deal with unemployment, and called on the Federal and State , Labour _ Governments to repudiate the decision taken at the Premiers’ Conference which Sir Otto Niemeyer attended, calling for a wago reduction and the lowering of the standard of living.. The committee also recommended the dissolution of the Loan Council, and called on the' Federal Government to instruct Mr Scullin to negotiate with Great Britain on the readjestment of war indebtedness and to 1 discuss the following points;— , : (1) That Britain made a profit of £250,000,000 out of Australian wool. (2) That all the other dominions were , relieved of all expenditures relating to the troops ■ upon _ embarkation' overseas, whereas Australia was charged from the time of enlistment until they were discharged. (3) That Great Britain paid the Australian farmers less than half what she paid the other dominions and one-third what she paid to foreigners for wheat. (4) That Britain had available millions, of gold to, _ buy Argentine wheat and meat notwithstanding that Australian produce was being, offered for sale. (5) That Britain agreed to write off four-fifths of the war debts of foreign countries and allowed the balance to bo repaid over a period of sixty-five years. (6) While Australia’s annual payments on war indebtedness amounted to 7 per cent., Great Britain was paying America per cent, on her debt to America.

, BRITISH PRESS COMMENTS. “ Australia gained,” asserts the 1 Birmingham Post,’ “ during the war. immense sums from Great Britain. For her wheat and her meat and her wool she received cash payments at a profitable figure, when most of it could not actually be shipped abroad because of the shortage or ships and the danger from German submarines.

“ This wholesale purchase of Australian produce- by Britain during tho war saved thousands of Australians from bankruptcy. If it suited Great; Britain, it suited Australia even belter, That is the direct answer to tho contention that Great Britain made a profit of £250,000,000 out of Australian wool. That apart, is Australia really so hard pressed th n t she finds it necessary to appeal to Great Britain to take less, in principal and interest, than Australia has formally agreed to pay? “ Is she, in fact, so hard pressed that she is ready to ‘ default I —and to make it a political issue with Great. Britain that she should be allowed to default? That, in; substance, is tho plea of this, committee : of the Australian Council of Trade Unions.

1 “ Even if the plea, were accepted—and clearly it could be accepted by Great Britain as a matter only of grace ■ —it would not go very., far to relieve Australia of her present difficulties.The total Australian war debt to Great Britain was in the region of £50,000,000. On this, taking interest and sinking fund together, she. is paying roughly £3,500,000 a year. “Is it possible to argue that even complete repudiation of the debt—let alone any reduction short of complete repudiation—would, give Australia any important assistance in her present difficulties? Tho plain truth is that any immediate benefit that could bo derived from such reduction would bo offset, and more than offset, by the inevitable lowering of Australia’s prestige and her credit.” “The suggestions put states ‘ The Times, 1 “at the conference of the Council of Trade Unions betray a marked reluctance on the par* of the trade unions to shoulder any part of tho burden. The council,, ofi course, it not;the Government, and it i* the. Government which will have to take the final decision and bear the responsibility of that decision. V “ Anxiety to see a-retnru to normal conditions is felt here only less keenly than in Australia, ' Whatever affects one part of the Empire affects tho whole, and particularly v the Mother Country. Ana apart, from tliat strong general consideration, the _ revival of British trade .with Australia depends on the revival ,6f Australian prosperity. Recovery can only be brought about by the readiness of Australians themselves to make the necessary efforts and tho necessary sacrifices, . but when they seriously set themselves to work to put their economic house in order they will find no lack of readiness ,in this country, wherever possible, to help them to help themselves. “ Of that there need be and can bo no doubt in Australia. But the onus at present is on the Commownealth Government to show that it has ihe strength and the courage to adopt themeasures,' however unpopular, which are admittedly necessary to restore financial'and economic stability.” BANKERS’ VIEWS. ' In the report of the Commonwealth Bank for the six months ended June 30 last occurs the following:— “ Unpleasant as it may be, the fact has to be faced that Australia has iu front of , her a very lean time. While the seasonal outlook for wool and wheat is good, visualising a considerable increase in productivity, it must be anticipated that any improvement in quantity will bo materially discounted by the price which these products ynli “ This is no time to indulge in optimism, but pessimism ik neither desirable nor profitable. Given the necessary, , effort and determination, there is no reason to anticipate the failure of Australia eventually to emancipate herself from her difficulties.” • ' At -the annual meeting of the Australian Bank of Commerce Sir Mark Sheldon (chairman) said: “We in Australia have relied in recent years too much* on legislation and Government control;, economic facts must prevail in the long run, but we have lost ■ sight in many instances of-economic principles.' ' . “ The country ihay for a time, by, legislation and helped- by hypothecating the future, carry on; but sooner or later the day of reckoning comes, and facts have to be faced—economic laws - apply to States just as to corporations and individuals. I have ex*ery conna-* ence that, once the people of Australia;realise the position they have drifted, into, they will cry a halt, and from that moment they can look forward to an improvement in the present situation.”, ~" .