HOW IT WORKS OUT

Grey River Argus, 28 July 1925, Page 6

HOW IT WORKS OUT

TUB DAWF.n PLAN. jobs fob Germany. MELBOURNE, July 2&. It now- is becoming quite clear to the densest that the effect of the war has not been to protect allied workers jobs, but to promote German Industry at sweat rates. The destination of such payments as are received in reparations from Germany is determined in a bill which was introduced by the Treasurer (Dr Earle Page) in the House of Representatives yesterday. The National Debt Sinking Fund Bill proposes the enlargement of the scope of statutory payments into a sinking fund by i chiding moneys received in respect ni reparations under the Peace Treaty with Germany, and all moneys received from the States as sinking fund contributions in respect of loans made by the Commonwealth to the States. In the recent, loans raised by the Commonwealth on behalf of the States the latter were required to make annual sinking fund contributions of 10s , per cent.

Also, provision is made in the bill for additional payments to the sinking fund out of consolidated revenue at the discretion of the Treasurer.

Mr Charlton (Labor leader) said as far as the principle of the measure was involved, he did not think there ' could be any opposition. At the same time, it was very doubtful whether the measure would be as beneficial to Australia as the Treasurer claimed it would be. The reparations were based on the Dawes plan, which provided that they could bo made in kind as well as in cash, and although, according to the Treasurer,' the first payments to Australia would be in cash, there was little doubt that in future Germany would make her payments in kind to the Commonwealth, as already she was doing to Great Britain. In that case, it would be very doubtful whether the reparations would be of any real benefit to Australia at all. He believed that, as time went on, the great bulk of the payments from Germany would be in kind. No one could imagine that Germany was going to pay in gold. She would pay in manufactured articles, which Australia would be compelled to receive, and consequently there would be slumps in Australian industries which manufactured corresponding articles. The industrial depression and unemployment which prevailed in England during his recent visit to that country was largely due to the payment of German reparations in kind. It was very questionable, therefore, whether German reparations -would lie of any advantage to Australia, because if paid in kind they would only create stagnation of industries and increased unemployment.