AUSTRALIA’S PART

Nelson Evening Mail, Volume LXVI, 12 July 1932, Page 5

AUSTRALIA’S PART

IN WORLD RECOVERY EXCHANGE AND TARIFF BANK MANAGER’S VIEWS (United Press Association—By Electric Tele graph—Copyright) SYDNEY, 11th July. Mr Davidson, general manager of the Bank of New South Wales, addressing tile University Public Questions Society on Australia’s part in world recovery, claimed • that Australia, by raising the exchange and lowering her tariff, could assist in bringing about better conditions here and abroad. Australia must discard the old idea of being self-contained. The exports of one country were the imports of another, and as Australia had reduced her imports, so she had reduced the exports of some other country, and made it moro difficult for that country to take Australian exports. No country could live by itself alone. Australia, if she can, must arrest the fall in prices to protect her own internal economy. “I am charged with being a fanatic on high exchange. Nevertheless, I believe we would use our exchange as a shock absorber. A tariff cannot provide to exporting industries that stimulus which a higher exchange can. Reco'very has got to come through private industry and initiative. Every metlfbd of reducing costs as well as lower bank rates and higher standards of efficiency should be adopted. Above all, the people must be encouraged to put money back into industry instead of saving it.”