Australia Must Act

Northern Advocate, 21 August 1948, Page 4

Australia Must Act

Expert View . . .

SYDNEY, Sat. (11.30 a.m.).—ln spite of Mr Chifley's repeated assurance that Australia at present would not follow New Zealand and seek exchange parity with sterling, expert Australian opinion seems to be that Australia must move towards parity sooner or later.

The Sydney Morning Herald say. c many observers in Canberra believe that the Government’s determination at this stage not to follow New Zealand’s lead has, to some extent, a political basis.

They point out that appreciation of the Australian pound to parity with sterling would mean a 20 per cent reduction in the gross income of Australian primary producers. In the year before an election the political value of such a move was doubtful, and Mr Chifley, who is now more than ever conscious of the disadvantages that the Labour Party faces at the 1949 election, would not be wise to increase the burdens that Labour candidates would have to carry. STOP SPECULATION

Some political observers believe, says the Herald, that the advantages that lower prices of imports, resulting from appreciation, would give to the average wage-earner in Australia, would not outweigh politically the loss of support from primary producers. Mr H. T. Armitage, Governor of the Commonwealth Bank, said exchange control authorities have taken action to prevent British speculator: profiting from any change in the sterling—Australia rate. Mr Armitage said the action would discourage the transfer of “profit money” from Britain. He added: “Anybody transferring large sums to Australia in the hope of getting it back to England with 25 per cent added, would have considerable difficulty.

TFor the first time in 15 years Australian visitors to New Zealand . have received less than face value for their money. Twenty passengers who arrived in Auckland by air from Australia yesterday received only 15/9 in exchange for their Australian pounds. They were thus among the first to feel the impact of the new exchange rate.]

Appeal For Children LONDON, Fri. (10.30 a.m.).—The United Nations Economic and Social Council approved an Australian resolution urging member Governments to contribute an “urgently needed” £500,000 to the United Nations international children’s fund. The children’s fund reported that even if the money were available only six per cent of European children in the receiving countries can be helped, and even fewer in Asia. The fund claims that it fed 4.000,000 children and mothers during 1948.