AUSTRALIAN FINANCE

Northern Advocate, 13 June 1931, Page 8

AUSTRALIAN FINANCE

After a conference which extended over a fortnight, the Australian Premiers have readied a decision which, if put into operation, should have a far-reaching and beneficial effect upon the affairs of the Commonwealth. The f remedy proposed is desperate, but the disease to be tackled is desperate. In brief, the Premiers' Conference proposes that the greater part of loans to the staggering total of 556 millions sterling should be renewed by Australian bondholders at 4 per cent, instead of 5 per cent., which is the rate of interest payable upon the present.•■loans. A conversion loan of such magnitude constitutes a gigantic operation, and if the Australian bondholders rise to the occasion, as Iwe believe they will, it will do more than anything else that can be visualised at the moment to rehabilitate Australia. Indeed, the decision of the Premiers’ Conference has already borne fruit, as may be judged from the press comments in England and elsewhere, not omitting Australia itself. It would really seem as if the dark clouds which have been hanging so long over Australia were about to lift. Added to the conversion loan, which it is estimated would mean a saving in interest of £5,600,000 per annum, itself a tremendous S relief, is a proposal to make a Jcut of 20 .per cent, in salaries of Government employees, and in war, old-age and other pensions, as well as increases in taxation. These measures, it is believed, would represent approximately 16 millions sterling. Relieved of such a large portion of her burden, Australia should regain an even keel and, in due time, reach the harbour of prosperity