RECENT CRITICISM

Manawatu Times, Volume XLIX, Issue 3478, 14 October 1926, Page 2

RECENT CRITICISM

AUSTRALIAN FINANCES. [By Electric Cable—Copyright.] [Aust. and N.Z. Cable Association.] SYDNEY, Oct. 13. Dr. Earle Page, Federal Treasurer, referring at Canberra to the hostile criticism of Australian finances which was contained in a pamphlet recently issued in London, said: “We are not ashamed of the large figures. Of the Commonwealth net debt of £339,000,000 at tho end of the last financial year, approximately £300,000,000 represented the war debt. Wo do not accept the blame for placing upon tho shoulders of tho small population of 6000,000 this heavy burden incurred on behalf of the whole of tho Empire. Almost all the debt is redeemable in Australia, except the funded debt to tho Imperial Government of £92,000,000, which carries terms of redemption and interest far more onerous than were imposed by the United States in respect to tho British debt, or by Britain in connection with tho debts of Franco and Italy. The war debt is subject to a statutory sinking fund, which will redeem the whole debt in 50 years, £28,000,000 having been redeemed in this manner in the last four years. Tho other Commonwealth debt is also subject to a definite sinking fund which, like that on tho war debt, ia payable from the annual revenue. This debt amounted to £70,000,000, which was spent mainly on post office works, which were immediately reS'cnue producing, on tho construction of tho Federal capital city, the revenue from which will pay the whole capital cost within a short period, and on other works which are creating valuable public assets and will stimulate and assist the settlement of men and women of British stock in Australia. “Every loan raised by the Loan Council is subject to a sinking fund. Apparently the excessive figures of State debts must bo examined in the light of the purposes for which the money was raised and the special I needs and circumstances of this undeveloped continent. Nearly half the j State public loans were floated in ! Australia, and more than two-thirds I worn expended on railways, tramways, water supply, harbours, rivers land similar works.” i Regarding the general economic | position of Australia, Dr. Page quoted | .statistics showing that tho publicly—- | owned' assets of the Australian Gov- | ernment and public bodies amounted Ito £725,000,000, and the private j wealth amounted to £2,42s,ooo,ooo,representing more than four times the. public debt and the private and (foreign debts, which arc estimated at I £700.000.000.