BORROWING ABROAD

Poverty Bay Herald, Volume LV, Issue 17407, 4 November 1930, Page 5

BORROWING ABROAD

AUSTRALIA’S DEBT GROWTH OF ADVERSE BALANCE SYDNEY, Oct. 12. “I f we eon hi' fiiis'e a £10,060,000 loan abroad, it would cost ps £lO,DOOOOO, owing to the depreciation of our currency. We cannot borrow abroad, because so much.of uur borrowed money lias been wasted. ” These remarks were made, yesterday al the Local Government Clerks-’ Conference by Mr. B. Latham, actuary of tho Commonwealth Bank.’

“Australia imported merchandise to the value of £1 422,000,000. and exported goods worth £1,294,000,000 during the 10 years ended .Tune ltd,” continued Mr. Latham, “leaving a balance against her of £128,000,000. Bawra returned us £33,000 000', ami we produced gold worth £2O 000,000, reducing the adverse balance to about £70.001),000. During that 10 yeat’s we wore due to pay for services abroad £3-00.1)00.(mo. Thus Australia has become indebted to the world to the tune of £370,000,000 more Hiatt she was 10 years ago. “Financial and.economic principles have been subordinated to political expediency. I am afraid that, while our political bodies have the right to borrow, thoy will borrow as long as people abroad will lend. If oar debts had not been increased, oversea, imports would, have been reduced by £240,000,000 —the amount of loans raised during the period. Our Customs revenue would have been £50,000,000 less. That £50,(Hl(),000 has been spent bv the Commonwealth Government as revenue. It is like a private company including a large item of goodwill in its accounts. This inflation and extravagant expenditure has brought Australia to her present position.”