WILL ENGLAND HELP AUSTRALIA?

Otago Daily Times, Issue 21258, 12 February 1931, Page 15

WILL ENGLAND HELP AUSTRALIA?

THE FINANCIAL SITUATION ' ’ REVIEWED. BUSINESS MEN’S STATEMENT. In the course of an interesting review of Australia’s financial position, Messrs J. B. Were and Sous made yesterday (says the Melbourne Age of January 28) the following thought-provoking statement : “ As time goes on events are making it increasingly clear that Australia’s financial difficulties are becoming more and more acute. There are, of course, no insuperable obstacles in the way of an internal adjustment; it may be delayed by the foolishness or selfishness of factions, but'sooner or later hard facts will triumph over theories, aud the necessary revaluations will be achieved. Our overseas position, however, is involved in dangers of a much more pressing character. The collapse of the world’s price level for our great export staples has made it extremely difficult for Australia to meet its. overseas interest obligations, and that difficulty is now showing itself in the rapidly rising rate of exchange. It was a big enough problem to find £36,000,000 in London; it is a much bigger problem to find £,45,000,000 for transmission to London, as the exchange rates will now compel us to do. The problem to which we desire to direct the most pointed attention it whether this can be done without some greater measure of assistance from the Mother Country than has so far been afforded to us. The events of the last few months have made it obvious'that the ‘Niemeyer prescription ’ of a prompt balancing of budgets in Australia cannot be taken in one dose. Indeed, there is in many quarters in Australia, and responsible quarters at that, a growing feeling that with his comprehensive knowledge of the Australian financial position Sir Otto Niemeyer must ere this have realised that such a prompt balancing could not be achieved, and that the famous ‘Melbourne agreement,’ correct as it was as to principle, was wrong in the rapidity with which the principle was intended to apply, and, therefore, that the agreement was beyond immediate achievement. This has now been recognised by the Loan Council, which is endeavouring to formulate a plan for the balancing of budgets over a term of years. It was well understood by Australians that if Sir Otto Niemeyer’s advice was taken a substantial measure of assistance would be 'granted by England with a view to enabling Australia to meet its pressing engagements abroad, and Australians are now asking whether, that advice having been shown to be impracticable, England is still prepared to assist us on more feasible conditions.

“ Let us point out quite shortly how the matter stands as we see it. With disorganised industry and growing unemployment at Home, and with the overseas prices of our primary products at unprofitable levels, Australia simply cannot avoid default in London if she is to be left unsupported by Great Britain. It is true that our ci’itics, who are legion, say somewhat jceringly to us that we cannot expect help until we put our own house in order. We are not concerned to deny that the Commonwealth Government has very largely failed to make those economies which a prudent Government, sensible of the circumstances, would have made. It is, however, a mistake to judge Australia merely upon a consideration of what the Commonwealth Government is or is not doing. The facts are that Australia is to-day sustaining a most drastic retrenchment in many quarters. Industrial investors have lost millions; primary producers are in financial straits to which Australian history affords no parallel; hundreds of thousands of Australian working men and women are being reduced by unemployment to the necessity of accepting public charity; and, most significant fact of all, the basic wage of the Australian workman has now been reduced 10 per cent, by the Commonwealth Arbitration Court. These facts afford the most eloquent testimony to the way in which Australia is submitting to privations in order that Australia's financial obligations may be met to the last farthing. They are facts which the British people and the British Government can not afford to ignore. Every difficulty to which we have referred is to-day a growing one, and if the growth is much longer continued financial disaster must occur. Should Australia be driven to default overseas the effect on the credit of the whole Empire must bd of the most serious character. Indeed, it is not too much to say that the enemies and rivals of Great Britain would hail with some justification such a default as the first symptom of a disintegration of the British Empire. “ The obviation of such a disastrous termination of our difficulties is quite plainly as much the business of Great Britain as it is the business of Australia itself. The urgent appeal which is to-day being made to the Mother Country by Australians, though it is largely, through motives of decent pride, unspoken, is, nevertheless, one to which that mother cannot, either in our interests or in hers, turn a deaf ear. We realise that the whole problem is one which involves mutuality of obligations. On our side we must be prepared to give up the bad and growing practice of engaging, in destructive party criticisms of those who are in power; we must be prepared to give the utmost support to moderate men of any party who are willing to tread the path of honesty and frugality; we must be prepared in the last, resort to tax ourselves to the limits of endurance. Great Britain, on her side, must drop her present policy of financial neutrality, and must be prepared to enter into a definite bargain that money for Australia’s needs will be found in London if Australia undertakes to follow out some well-considered and practicable budgetary plan. In short, what we want to-day is some definite and workable arrangement with Great Britain, under which we will be called upon to perform the possible, and Great Britain in her turn will be called -upon to preserve a not unimportant part of the Empire from disaster. " Australians are reluctant to make anything which savours of an appeal lor help, but they feel that they can make this one with a good grace. Their own contribution to the formation and strengthening of the Imperial tie has not been a small one; at least some part of their financial difficulties and heavy liabilities to-day are due to their wholehearted participation in the Great War. “ We have every confidence that Australia’s resources and Australian courage will ultimately achieve success and solvency. What we are concerned about is what is going to happen in the next few years. Inevitably all Governments in Australia will be compelled drastically to revise their costs and to reduce their social expenditure. In all States excepting New South Wales, Premiers, including Labour Premiers in South Australia and Victoria, have already shouldered this task with courage; but during the years which must intervene before our primary industries regain their strength and their prosperity, urgent and reciprocal measures must be taken by Great Britain and Australia if we are to avoid disaster. To the Australian Governments, Federal and State, we would say that they must not underrate the intelligence and initiative of Australians. Let them tell the people the truth in plain, unvarnished language, and they will find that the Australian people will follow and uphold that

truth. They will follow it, however, the more hopefully and the more courageously if there comes from London a statement that England will, as long as Australia follows the straight path, extend to us speedy, practical and ready aid.”