TEN YEARS’ BOOM

Gisborne Herald, Volume LXXII, Issue 21853, 25 October 1945, Page 6

TEN YEARS’ BOOM

BANKER’S FORECAST AUSTRALIA’S PROSPECTS SOUND WAR - FINANCING SYDNEY, Oct. 24. A 10-year period of the greatest prosperity in Australia’s history was predicted by the president of the Rural Bank of New South Wales, Mr. C, R. McKerihan, yesterday. Australia, he said, had not “fallen for the cry of postwar credits.” She had conducted her economic controls during the war better than any other comparable country. By financing the war with taxation, the flotation of public loans and an extension of credit, Australia had kept her economic position within due bounds. During the last war, Australia floated loans amounting to £187,000,000 abroad, followed by another vast sum to pay for the war. “This time she has kept all this internally,” he said. “This is going to be a big factor in keeping Australia on the road to recovery and prosperity.” Mr. McKerihan said that at the end of the last war the average interest rate was 7 per cent. To-day it is 4i per cent. Pie said it was the duty of Governments to provide money for all national undertakings which would mean the broader development of Australia in the immediate post-war period.