AUSTRALIA'S TAXES

Poverty Bay Herald, Volume LXV, Issue 19758, 12 October 1938, Page 5

AUSTRALIA'S TAXES

WARNUNG FROM LONDON

"STORM SIGNALS FLYING"

LONDON, Sept. 25

The Economist declares that increased taxtion in Australia confirms the opinion of those who foresee that a policy of relatively high rearmament expenditure from borrowing has obvious limits. The Federal Treasurer, Mr. Casey, might feel fairly easy if the country's finances were relieved of the defence expenditure, The Economist states. "Storm signals are flying," it says. "A country so closely dependent on world conditions as Australia would be wise to face the future with shortened sail. The latest estimates of the balance of payments show clearly that the change of atmosphere' in the economic position of Australia is in no way alarming, but justifies every caution.

The financial correspondent of the Sunday Times says that Australia's Budget is a striking illustration of the excellence of the internal financial position and a demonstration cf the practical steps that are being taken for the support pledged to Great Britain in the hours of need. Maybe the estimate of revenue is a trifie optimistic, adds the correspondent, but if the European political difficulties are overcome, this is clearly a proper attitude, for the past year of low export prices has been offset satisfactorily by the volume of exports. Of course, increases in taxation are necessary, but internal refinancing will play an important part in footing the bill.