THE COMMONWEALTH

Otago Witness, Issue 3662, 20 May 1924, Page 18

THE COMMONWEALTH

SOME ECONOMIC ASPECTS. MELBOURNE, May 16. In the House of Representatives Mr H. E. Pratten, speaking of Australia’s economic position, said the Public Debt since 1870 had on the average doubled every 10 years. In 1860 it was twelve millions ; it was now 950 millions. It was the duty of those responsible for financial affairs to take a tighter grip of the reins. An increase of population probably would relieve the load of debt, but while the debt increase since 1870 had been 3000 per cent, the population increase was only 235 per cent. He believed that the national wealth of Australia from all sources totalled approximately 3000 millions. A comforting feature was the growing tendency to seek money within the Commonwealth’s own borders instead of going abroad. Of the Commonwealth debt more than two-tliirds was obtained in Australia and the rest in London. Of the States’ debt more than two-fifths was obtained here. Since 1915 66 per cent, of the loans were raised in the country and the remainder outside. The rate of interest paid for the past decade increased from £3 12s 6d to £5 per cent, for the Commonwealth, and from £3 12s to £4 7s 6d for State loans. During the life of the present Parliament loans totalling two hundred millions were falling due, and the time was approaching when interest charges, compared with 10 years ago, would have increased 75 per cent. No serious attempt had hitherto been made to face the position. New South Wales, with a gross indebtedness of 180 millions, had a sinking fund of £400,000. The Commonwealth had done a little better in providing a sinking fund of 4 per cent. For Australia to keep out of further debt her exports should exceed her imports to the extent of the interest on the debts abroad, in addition to the amounts spent by Australians abroad, together with other services and remittances.