AFFAIRS OF AUSTRALIA.

New Zealand Herald, Volume LXVI, Issue 20152, 12 January 1929, Page 11

AFFAIRS OF AUSTRALIA.

REPORT OF COMMISSION. ENGLISH RECEPTION GOOD. CRITICISM OF LOAN POLICY. Australian and N.Z. Press Association. .(Received January 11, 7.15 p.m.) LONDON. Jan. 11. Iho limes describes the report of Sir Arthur Duckham, Sir Hugo Hirst, Sir Ernest Clark and *Mr. Dougal Orme Malcolm on Australian economic affairs as being a frank and friendly document, which should help the business community in both countries to get a true perspective. Hie report, as might be expected, contains a good many criticisms of Australian economic activities, but these were animated by a spirit of impartial insight. Most of them, if not all, had already been formulated by the more farsighted economic thinkers in Australia. Ihe Times says it regards as most important the section on the loan policy, which has given rise to much anxiety, both in Australia and Britain. On the fundamental question of the soundness of tho country's financial position the report is less pessimistic than some opinions lately expressed. Eflsct on British Investor. Its conclusions will be welcomed by tho British investor, who has recently shown a somewhat reserved attitude toward Australian issues. The Times goes on to review the sections of the report referring to the tariffs and immigration. It says that it thinks there are probably few persons intimately acquainted with Australian conditions who will feel inclined to disagree with the conclusions. Strict canons of parsimony and retrenchment are no doubt less important in a young country, which can perhaps sometimes afford a scale of expenditure that would be disastrous in an old country. At the same time there can be little doubt but that the reckless borrowing in recent years lias not improved Australia's credit. The same is true of her recent tariff policy. The volume of production is not diminishing, buL is not expanding as rapidly as it should under a wiser and more discriminating fiscal system. I"ortunately tho facts are becoming known. Australia lias begun herself to set her house in order. The report should assist her to do this. Financial circles generally approve the tone of the report, which is regarded as fair and businesslike, but important men are disinclined to comment on the brief cabled summary, preferring to wait till they have seen the full report. One or two point out that much of the cabled summary seems obvious. They express gratification that the mission, after personal experience in Australia, endorse opinions frequently expressed here regarding borrowing, public expenditure and the costs of production. 111-considered Schemes. The Morning Post says: Whether or no Australia accepts tho advice offered in the "Big Four" report we arc confident some of the best brains in the Commonwealth are cordially in agreement with it. Tho commission mostly deprecates ill-con-sidered development into which politicians rush, not only in Australia but elsewhere, without inquiring whether the schemes will pay in money, only considering whether they will pay in votes. Hence the large stable, of white elephants which would have ruined a country of less natural wealth than Australia. England cannot afford to blame Australia for the economic" policy of high protection, since she forced the policy upon her by abolishing the old but wise preferential system we are now labouring to restore. OPINIONS IN SYDNEY. NECESSITY OF REFORMS. REPORT FRANK AND VALUABLE. SYDNEY, Jan. 11. Commenting on the. report of tho "Big Four" economic experts the Sydney Morning Herald describes it as candid and valuable and tempered with good humour. It adds that the reforms implied or suggested will be forced upon Australia from without if they are not cheerfully adopted 'from within. It must be assumed that the report will lie accepted in London as one which accurately mirrors Australian conditions and, unless Australia evinces a readiness to heed its lessons, financial accommodation will become much less easy to obtain. The paper admits that Australia has not been as well financed as it should have been, but expresses the opinion that there is still time to repair past mistakes. The Sydney Sun comments that there is not one criticism in the report which thoughtful Australians in public life and in the press have not uttered. The report, it says, speaks frankly of Australia's mistakes and omissions, but while keeping in mind the political difficulties it should have told Australia how to remedy them. The paper says it consider* that tho Prime Minister, Mr. Bruce, makes a tactical mistake in inviting criticism, which, from its official character and its free trade flavour, must do a certain amount of damage to Australia in the minds of British investors.