AUSTRALIA'S DEBTS

Marlborough Express, Volume LIV, Issue 189, 11 August 1920, Page 7

AUSTRALIA'S DEBTS

SERIOUS FINANCIAL OUTLOOK

Mr Herbert R. Lysaght, chairman <uf directors of the Australian Bank ot Commerce, Ltd., sounded a warning on the financial outlook at tho annual meeting of tho shareholders of the bank. " ~-;,, i "Since pea.cc was declared, he said, "continued reference has befen made as to the necessity for economy in every direction, with the view of restoring the finances of the world to ji sound lasis. The bank's directors think that every suitable opportunity should be.taken to emphasise this need for rigid economy. The Federal and State loan indebtedness at the present time amounts to nearly £800,----iKX),OOO, and not only the Federal, but practically all the State Governments are in the market for further loans. The rate of interest payable on a. large portion,of the money borxowed is a high oiie, and all conversions, of which there will be some £400,000,000 during the next few years, must from present indications be made at even higher rate& If we tlso take into consideration the amount of borrowings by* municipal and other.public bodies, it must be evident to all that unless our finances are very prudently handled the interest payable may become so heavy a burden'on the community that the natural expansion of the States in production, trade, and commerce will bo very adversely affected, and seri<ms results to alt classes of the community must follow. The fostering of our pastoral and agricultural resources nasa very distinct bearing on the question, and the solution of the present difficult position must chiefly t-e looked for from the country. Every effort, therefore, should be irade to make the path of those on the land as easy as possible, and to encourage in every possible way an increase in the agriciuturjil, pastoral, and mineral production of the Cbmironwealth."