AUSTRALIAN FINANCES

Nelson Evening Mail, Volume LXI, 13 October 1926, Page 2

AUSTRALIAN FINANCES

LONDON CRITICISM

REPLY BY DR. I'AGI-

(Bx Electric Telegraph—Copyright.) (Amftralian <Sk N.Z. Cable Association.) (Received 13th Oct., 11.5 a.m.) SYDNEY, This Day. Dr. Page referring at Canberra to the hostile criticism of Australian finances contained in a pamphlet recently issued in London said: "We are not ashamed of the large, figures of Ihe Commonwealth debt. Of a net debt of £339,000,000 at the end of the last financial year approximately £300,000,000 represented war debt. We do not accept blame for placing upon the shoulders of :i small population of 6.000.000 people, this heavy burden incurred on behalf of the, whole Empire. .Almost all ihe debt is redeemable in Australia except, the funded debt to the 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 British debt or by Britain in connection with the debts oi' France and Italy. War debt is subject to a statutory sinking fund which will redeem Ihe, whole debt in 50 years, £28,000,000 having been redeemed in this manner in the last four years. Other Commonwealth debt is also subject to ;i definite sinking fund which, like that, on the war debt, is payable from Ihe annual revenue. This debt amounts to £70,000,000, which was spent mainly on post office works, which were immediately revenue producing; on the construction of the federal capital city, revenue from which will pay the whole, capital cost within a .short period ; and on olber works which are creating valuable public, assets and will stimulate and assist the setllenient of men and women of British stock in Australia. Every loan raised by the Loan Cmincil is subject lo a sinking fund. Apparently the excessive figures of State debts must be examined in the light of the purposes for which the money was raised and the special needs and circumstances of this undeveloped continent. Nearly half the State and public lams were floated in Australia atid more than two-thirds were expended on railways, tramways, water supply, harbours, rivers and similar works."

Regarding the general economic position of Australia Dr. Rage quoted statistics showing that, publicly owned assets of the Australian Oovernmenls and public bodies amounted to £725,000,000 and private wealth amounted to £2,425,(X)0.000, representing more than four times the public debt and private foreign debts, which are estimated at ij700.000.000.