LOAN MONEY SHORTAGE.

New Zealand Herald, Volume LXVII, Issue 20496, 22 February 1930, Page 11

LOAN MONEY SHORTAGE.

AUSTRALIA ECONOMISING.

ANOTHER "CUT" ANNOUNCED

HALF RECENT EXPENDITURE.

By Telegraph—Press Association— Copyright. (Received February 21, 10.15 p.m.) CANBERRA. Feb. 21. The Federal Loan Council has decided to reduce the expenditure of loan money during the* next half year to half the normal amount. Instead of the £43.000,000 which was borrowed last year, and which has been the average for the last four years, the council has decided on heavy reductions, which will bring the rate of loan expenditure down to £22,000,000. The Federal Treasurer, Mr. E. G. Theodore, stated that in the current year about £10,000.000 of sinking fund money is being used for the redemption of debts in Australia and overseas. He also announced that the public debt of the Commonwealth, including the States, is now £1,116,834,298, as against £1,104,029.263 at June 30, 1929.

When the Loan Council, which comprises representatives of the Commonwealth and of all the State Governments, met at Canberra last May, the States alone submitted programmes requiring about £37,000,000 of loan money. . The council was then informed that the total amount of new money that could be borrowed for the financial year'ending June 30, 19.30, should not exceed 5 £30,000.000. A meeting of the council was held in Sydney iri August. It decided to make a further reduction of 20 per cent, in the loan estimates adopted at the Canberra meeting and the council resolved to confine its borrowing to £23.000.000. _ This amount was confirmed as the practicable maximum at a further meeting in Melbourne on November 11. The Loan Council has already issued £20.000,000 in new loans this year, comprising two issues of £5.000.000 of Treasury bills in London and the recent £10,000.000 loan in Australia.

FEDEBAL FINANCES

REVENUE GAIN OF £2,000,000

DUTY ON LIQUOR AND TOBACCO. (Received February 21. 10.30 p.m.) CANBERRA. Fe'n. 21. The Federal Treasurer states that the Commonwealth revenue for the six months to December 31 amounted to £20,000,000, which was £2,000,000 greater than in the corresponding period oi last year, largely

owing to increased customs and excise duties on liquors and tobacco. The tocal expenditure from revenue for the six months was £21,642,000.