AUSTRALIA’S GOOD POSITION

Evening Star, Issue 21318, 24 January 1933, Page 5

AUSTRALIA’S GOOD POSITION

MR K. PIERPONT MORGAN’S VIEWS There appears no doubt that Australia will return to prosperity before the other nations,” said Mr K. Pierpout Morgan, a member of the American banking family, on his departure from Sydney for Java by the steamer Nieuw Zeeland recently (states the Svdncy ‘ Morning Herald ’). Mr Morgan said that the depression had been caused'by an adjustment of values after the prosperous years immediately following the war. Those years were so exceptional that they could not last, and everything had to return to normal. The change had frightened people, and the psychology of fear, once started, had caused all the trouble. People would realise that the change had been only a return to normal, and then business would improve. Mr Morgan said that the sane way Australia had faced her difficulties, the realisation that improvement would be due to economic causes and not to legislation, and natural advantages, would lead the country back to prosperity in advance of other continents. He said that the election of Mr Roosevelt would improve conditions in America. A lower tariff would make trade more mobile, and assist to remove the problem of war debts. Repeal of Prohibition, which had been a burden to America, would be a factor in the country’s advance. No one conversant with American feeling .concerning war debts could believe that they would < ver be wiped out, but there would certainly be a scaling-down.