TRADE AND DEBT.

Hawera Star, Volume XLVII, 12 March 1928, Page 8

TRADE AND DEBT.

A UiSTRALIA ’S POSITION. SIR ROBERT HORNE’S ADVICE . SYDNEY, Feb. 23. Sir Robert Horne, a former Chancellor of the Exchequer in Britain, who, is now visiting Australia, has proved himself a keen observer, and his remarks an Australia’s economic position have aroused considerable interest. His latest remarks on this subject seem to be as applicable to New Zealand as they are to the Commonwealth.

“I hope you Avill forgh'e me if I venture. to direct attention to one or two things I have noticed,” he said in Mel bourne the other day. “When 1 place the iadA'crsc .balance of trade against the fact that Australia has a Public Debt of £1,000,000,000, of Avhich £442,000,000 is owed outside Australia, ca'cii an adverse balance of only £11,000,000 is something that you should take notice -of. Although it does not emb ax ass you hoav, it might do so in an awkward situation. The accounts of some of the Australian States reveal some very aAvkAvard figures of losses off State ventures, and many things the States have done on borroAved money have not fructified. Indeed, there are large sums of capital expenditure standing on the hooks Avhich in an ordinary business Avould have been written off long ago. I do not suggest that this should cause you any pessimism, but it should induce your financial leaders to 'consider Avlicre they are going, and Avliat is the tendency of the country. In England our own record of expenditure has caused us the greatest embarrassmeiri When a State enters a' venture Avith borroAved money it can never repudiate it s debt, which becomes a inill-stoue around the neck, and can bo met. only out, of the caruiiigs of the people. Our embarrassment in England has obstructed our merchants in their attempt to compete and sell goods in foreign markets. “Australia's Avealth is indefinite, and there is no burden it cannot carry ultimately, but you should hot place yourselves in a position in which you would be able to use your best assets. You have great lands Avhich yield you grain and sheep which yield you fleece. Do not place too great a burden on these great industries. I hope in your development you will be 1 icarcful to preserve the balance between primary and secondary industries. I hope also that in yoUr dcA'-elopnient you Avill neA'cr lose sight of the Old Couutry from Avhich avc haA r e all sprung, and that your good fortune and our good fortune will go fonvard together. ”