DOMINION BORROWINGS.

Otago Daily Times, Issue 19687, 14 January 1926, Page 8

DOMINION BORROWINGS.

Thb extent of Australian borrowings on the London money market is beginning to evoke some comment, not entirely favourable. Tims the Daily Herald speaks of Australia in somewhat satiric vein as the sort of borrower who, when asked how much he wants, returns the answer “How much have you got?” There has just been an announcement of the intention of the New South Wales Government to go to the London market for a loan of £11,250,000. South Australia, Western Australia, Victoria, Queensland, and Tasmania have all seized the opportunity to offer more or less important loan proposals since the lifting of the loan embargo by the Home Government in November. The Economist recently based a little homily for Empire consumption on the premise that there is a contradiction in the attitude of a protectionist country which tries to borrow abroad. “Our own dominions,” it is observed, “are very much open to criticism in this direction. Australia, for example, has, with other dominions, had a privileged position in the English market, and is likely to continue to be a very large borrower since she has need of great development, and is perhaps living on too high a standard to provide much of her capital resources herself. Nevertheless she is subjecting to high tariff duties the products needed for development. If there is to be discrimination in foreign loans, we should like to see that power exercised in favour of countries whose policy permits a reasonable exchange of goods.” The protective tariffs imposed by Australia and New Zealand are modified, it is true, by the preference that is accorded to Great Britain, but it to be admitted that the modification is not a very substantial one. The suggestion of the Daily Herald that Great Britain might benefit if more of the Australian loans were placed in New York is presumably influenced by the argument that her chief industries are dependent on free interchange of goods, for which reason British capital might more profitably be lent to countries that are not protectionist. That view has regard,' however, to one only of the many aspects of a wide issue. Clearly, a discouragement of borrowings by the dominions in London would not have the effect of stimulating trade within the Empire, or of promoting Empire development, though these represent important objectives. Quito possibly the Daily Herald is less interested in viewing the trade position from the Imperial standpoint than those are who wish to see British industry catering more largely for the requirements of the dominions.