ECONOMIC OUTLOOK.

New Zealand Herald, Volume LXVIII, Issue 20988, 26 September 1931, Page 10

ECONOMIC OUTLOOK.

DOMINION AND AUSTRALIA.

SPEEDY RECOVERY EXPECTED

LONDON FINANCIAL OPINION.

The belief tliafc both Australia and New Zealand -would recover speedily from the effects of the economic depression is strongly held in financial circles in London, according to the impression formed by Sir Edward Macartney, Agent-General for Queensland in London, who arrived at Wellington by the Corinthic on Wednesday, and joined the Maunganui, cn route to Sydney, at Auckland yesterday. As he left England on August 14, Sir Edward was not disposed to comment on the dramatic series of events, including the formation of a Coalition Government and the suspension of the gold standard, which lias since occurred. However, ho said that for a considerable period there had been an anxious feeling in regard to the general situation, and apparently that uneasiness had been in part contributed to by the Australian position. A Friendly Feeling.

"The development of the Australian crisis was gradual, and caused much anxiety in financial and manufacturing circles in Britain," said Sir Edward. "That anxiety was heightened from time to time by tho news of the political difficulties which arose, and whifh were subsequently centred more or less on New South Wales. However, thero is a strong belief in London financial circles that the Australian and New Zealand positions will quickly right themselves, and that, but for tho unfavourable circumstances of tho last year or two, both countries would havo been well on tho road to recovery by this time.

"There is a very friendly feeling in London toward Australia and NeSv Zealand. If we square our ledgers, lam satisfied any moneys we may require will bo available to us on reasonable) terms. I am also quite sure that there,will be capital available for private enterprise. There is a growing demand in England for Umpire products, and that, is an indication of the Old Country's desire to assist tho Dominions." Unemployment Problem. V While the political parties were still divided 011 the question of tariffs when ho left London, and tho question of preference for the Dominions was. therefore, necessarily deferred, Sir Edward thought there was a general desire among all parties to create a better situation. The times called for combined patriotic action to right the present position. England had a tremondous task to deal with in its unemployment problem. Tho large increase in unemployment during tho past veax had imposed a heavy strain 011 the Treasury in connection with dole payments. That system appeared to have been much abused, and it had contributed in substantial measure to tho unsatisfactory position of the British Budget.

Sir Edward, who has been prominent in Queensland politics for many years, being Leader of tho Opposition at one period, took up his appointment as AgentGeneral in London in July, 1929. lie was unable to state yesterday whother ho would return to London, but said lie was on leave and would be discussing "future arrangements" with the Premier of Queensland, Mr. A. E. Moore, on his return to Brisbane next week.