AUSTRALIA'S FUTURE.

New Zealand Herald, Volume LXIX, Issue 21232, 12 July 1932, Page 9

AUSTRALIA'S FUTURE.

WAY TO RECOVERY.

ADVICE OF A BANKER.

(Received July 11. 11.25 p.m.) SYDNEY, July 11

The general manager of the Bank of New South Wales, Mr* A. C. Davidson, in the courso of an address to the University Public Questions Society on " Australia's Part in the World's Recovery " claimed that Australia, by raising the exchange rate and lowering the tariff, could assist in bringing about better conditions here and abroad. Australia must discard the old idea of being self-contained, said Mr. Davidson. The exports of one country were the imports of another, and as Australia reduced her imports so she reduced the exports of some other country and made it more difficult for that country to take Australian exports. No country could live by itself alone.

Australia, if she cpuld, must arrest the fall of prices and protect her own internal economy instead of standing up to the full blast of the storm. "I am charged with being a fanatic on high exchange," said Mr. Davidson. " Nevertheless, I believe we should use our exchange as a shock absorber.

" A tariff cannot provide to the exporting industries that stimulus which higher exchange can. Recovery has got to come through private industry and initiative. " Every method of reducing costs as well as lower bank rates and higher standards of efficiency should be adopted. Above all, the people must be encouraged to put their money back into industry instead of saving it."