OVERSEAS FUNDS

Otago Daily Times, Issue 24421, 5 October 1940, Page 19

OVERSEAS FUNDS

SITUATION IN AUSTRALIA ECONOMY IN IMPORTS URGED A warning that the maintenance of Australia's overseas funds would require widespread economy in the consumption of imports is contained in the half-yearly ..report of the directors of the Commonwealth Bank. ."Forithe third.year in succession, the value of exports, including new gold produced, has been insufficient to meet the cost of imports and of external interest payments," the report states. "This is a situation which calls for correction, in spite of the fact that Australia's overseas funds during ihe year 3939-40 actually increased as, the re-sult-of .'invisible* items, chiefly nonrecurring transfers of capital. Although the United Kingdom Government is helping to finance our overseas war expenditure, it is desirable that as much as possible should be met out of our current receipts of international funds. Otherwise this expenditure becomes an additional burden on the resources of the Uni'ed Kingdom. "The need for correction i s the greater because of the uncertainty about our export income in 1940-41. It ds already clear that the season will not be as good .as the exceptionally favourable one of 1939-40. and the diffi'CUlties of shipping and marketing our exports surplus may be greater."