COMMONWEALTH FINANCE.

New Zealand Herald, Volume LXI, Issue 18711, 17 May 1924, Page 9

COMMONWEALTH FINANCE.

INCREASING PUBLIC DEBT.

TIGHTER REIN ADVISED.

INTEREST LOAD GROWING. By Telegraph——Copyright (Received 5.E p.m.) A. and N.Z. MELBOURNE, May 16. In the Federal House of Representatives Mr. H. E. Pratten, M.P., for Martin, N.S.W., speaking of Australia's economic position, said that the public debt since 1870 on an • average had doubled every ten years. In 1860 it amounted 0 £12,000,000, and at present it totalled £950,000,000.

It was the duty of those responsible for the financial affairs of the Commonwealth to take a tighter grip of the reins. Increase of population would probably relieve the load of the debt, but while its increase since 1870 had been 3000 per, cent., the population, said Mr. ■Pratten, had increased only 235 per cent. He believed that the national wealth of Australia from all sources totalled approximately 1 £3,000,000,000. A comforting feature was the growing tendency to seek money within Australia's borders instead of going abroad for it.

Of the money owing by the Commonwealth, more than two-thirds was obtained in Australia, and the rest in London. Of the money borrowed, by the States more than two-fifths was obtained in Australia. Since 1915, continued Mr. Pratten, 66 per cent, of the loans had been raised in Australia. The rate of interest paid in the past decade increased from '£3 12s 6d to £5 per cent, for Commonwealth, and from £3 12s to £4 7s 6tl for State loans. During the life of the present Parliament loans totalling £200,000,000 were falling due.

Tho time was approaching when the interest charges, compared with ten years ago, would have increased 75 per cent. No serious attempt had hitherto been made to face the position. New South Wales, with a gross indebtedness of £180,000,000, had a sinking fund of £400,000. The Commonwealth had done a little better, providing a sinking fund of i per cent. For Australia to keep out of further debt, her exports should exceed her imports to the extent of the interest on her debts abroad, in addition to the amounts spent by Australians . abroad, together with other services and remittances.