WAR WEAPONS
DRAIN ON AUSTRALIAN FUNDS COLLECTIONS PROHIBITED (Air Mail) SYDNEY. June 8. The Federal Government has prohibited further collections of money in Australia for transfer to Britain to buv war equipment for the British Government. The treasurer. Mr A. W Fadden, said that the Government was in sympathy with the object of these funds, but the prohibition was necessary to prevent an unnecessary dsain on Australia's funds in London. Sterling credits had already been de ; pleated by £stg.9oo,ooo by the transfer of gifts to Britain since the war began Mr Fadden said. The prohibition would apply only to gifts to the British Government to buy munitions and equipment. Mr Fadden said. It would not affect the collection in Australia and the transfer to Britain of money for war relief purposes, such ?s aid for destitute people in bombed areas. The Government hoped that British arms funds already in existence would be diverted to buv arms for Australia. Money collected for arms and given to the Australian Government could be used without dislocating the exchange position, and would help the Government in the difficult task of financing next year's war bill.
Mr Fadden said that the latest of the type of fund which had been prohibited was a " Hood Fund." opened in Western Australia to replace the battle cruiser Hood. Such funds could no! contribute in anv material way to the success of the war. The limits to the rate at which Britain was producing equipment for her own defence were entirely material and 'physical. They were fixed by the rate at which equipment could be manufactured and personnel could be trained.
The only effects these monetary gifts to Britain's armament effort could have was to subtract from the funds available to Australia to meet her own needs here and in London This would lead to the anomalous position in which Australia, he vine given money to Britain to buy arms, would be obliged to borrow it back to meet her own sterling requirements for war
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Bibliographic details
Otago Daily Times, Issue 24634, 16 June 1941, Page 10
Word Count
336WAR WEAPONS Otago Daily Times, Issue 24634, 16 June 1941, Page 10
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