AUSTRALIA'S TIME LIMIT.

New Zealand Herald, Volume LXVIII, Issue 20761, 2 January 1931, Page 8

AUSTRALIA'S TIME LIMIT.

There are two notable features in the final results of the Australian conversion loan campaign. The first is the extraordinarily high proportion of the total amount that was supplied by cash subscriptions. The fact that the people of Australia were able to provide nearly £19,000,000 to meet a national emergency—in the circumstances, the term may be used without exaggeration—is eloquent evidence of both economic strength and national courage. The second is that over £25,000,000 of cash and conversion applications were for stock with only two years' currency. This recalls one of the most significant observations by Sir Otto Niemeyer in his address to the famous Melbourne Conference, at which, according to a formal acknowledgment made by Mr. Fenton recently, he spoke frankly because "the Prime Minister had invited Sir Otto to express in the fullest way his views on the position of Australia and the action that should be taken." Remarking that by a great piece of luck Australia has no external debt maturities in 1930 and 1931—apart from unfunded debt—he said "she has a maximum period of two years in which to put her house in order." Including a Bniall sum in London, the original total of maturities in 1930-31 was £55,784,108, for part of which provision has to be made in the next six months. The maturing obligations in 1931-32, State and Commonwealth, are £43,853,435, an amount large enough to be embar-

rassing. But in 1932-33, there will be the huge sum of £106,516,913, including the two-years Btock of the recent conversion loan and £12,992,904 of State debts falling due in London. Hence, last month's campaign achieved only a breathing space for Australia, and placed greater emphasis on the necessity for a complete restoration of her credit before external as well as internal obligations fall due for redemption. In the meantime, the incubus of unfunded debt in London is increasing; according to a recent cablegram, the total is £38,000,000 and Mr. Scullin is returning from London without any announcement of arrangements for the funding loan which months ago he declared was urgently necessary. In their recent manifesto, the Australian banks stated that in three years they had advanced £70,000,000 to the Australian community and Governments in Australia and London. It has since been stated that between £40,000,000 and £50,000,000 of that huge total has been absorbed by Governments, including £31,000,000 in London. These figures are sufficient proof of the extent to which Australia's present difficulties are dua to mismanagement of her public finances.