AUSTRALIA’S DEBTS

Nelson Evening Mail, Volume LIV, Issue LIV, 13 August 1920, Page 6

AUSTRALIA’S DEBTS

SERIOUS- FUNaNCIAL OUTLOOK Mr Herbert K. Lysaght, chairman of directors of the Australian Bank of Commerce, Ltd., sounded a warning on the financial outlook at the annual meeting of the shareholders of the bank. “Since peace was declared,” he said, “continued reference has been made at to the'necessity for economy in every direction, with the view of restoring the finances of the world to a sound basis. 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 £800,000,000, and not only the Federal, but practically all the State Governments are in tho market for further loans. The rate of interest payable on a large portion of the money borrowed is a high one, and all conversions, of which there will be some £-100,000,000 during the next few years, must from present indications be made at even higher rates. If we also take into consideration the amount of borrowings by municipal and other public bodies, i.t 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 be very adversely affected, and serious results to all classes of the community must follow. The fostering of our pastoral'and agricultural resources has a. very distinct bearing on the question and the solution of the present difficult position must chiefly bo looked for from the country. Every effort, therefore, -should he made to make .the path of those on the land as easy as possible, and to encourage in every ' possible nay an’increase in the agricultural, pastoral, and mineral production of the Commonwealth.