FEDERAL FINANCE

Hokitika Guardian, 4 May 1931, Page 6

FEDERAL FINANCE

A FINANCIAL SUPPLKMENT. • A PRESS REVIEW. (United Press Association —By Electric Telegraph.—Copyright-.) (Received this day at 8 a.m.) LONDON, May 3. The Financial Supplement of the “Tintes” dealing specially with the Australian situation surveys fully the economic, industrial conditions. The managing editor of the “Financial Times” 11. J. Barrett emphasises the needs of a young country to tell the world, how she actually stands in order to correct misgiving misapprehensions. Britain has not forgotten Australia’s wartime sacrifices nor the crippling, financial obligations incurred therein. It is ridiculous in face of Australia’s remarkable developmental achievement to treat his passing phase of economic stress as symptomatic of decay. Australia really is in the flush of a- vigorous youth and has natural advantages and potentialities unsurpassed in the world. Paradoxically Lord Ryrje’s to reword gives the actual explanation oi the present crisis, with the outline of remedial measures, whereas Mr Seullin’s page article is vartually policyless and merely recites Australa’s resources, finally claiming that while. Britain’s debt is almost entirely a dead weight arising from the war, only oin- third of Australia’s debt is associated with the war, the remainder being represented by assets contributing to' J the payment of interest on the debt. Mr Scullin’s closing paragraph ends in u reflective note—- “ Perhaps we might- have done better if the whole world spoke honestly or its endeavours. Wouldn’t- the answei he the same, what would we not all give to undo yesterday’s mistakes.” LONDON, May 3.

Professor 0. B. Copland, examining the factors -underlying the crisi K points out the disparity between wholesale prices which have fallow only eighteen per cent, ami export prices, which are fifty per cent lower. He argues that the loss of income which is now mainly falling on producers, must he spread evenly over the community and expresses the opinion that if Government devise a 3 year rehabilitation plan, confidence will follow and a fall in costs, from the reduction of wages will provide a basis for an economic recovery.

A. C. Davidson. General Manager of the Bank (if New South Wales, declares given a good season, the termination of the decline in prices and budget oquiljbrim.u should be. possible by .Mine 1932. paving, the-way for a reduction of internal interest rates and extension of credit to assist primary industries, by raising a loan temporarily to finance exports. “Then” h t < adds “we shall ’nok to Britain to contribute l»v funding the floating debt payments at the rate of ten or twelve millions each half vear.”

It is noteworthy ' that Mr Lang is not among the Premiers contributing articles.