MORE LIBERAL FINANCE

Southland Times, Issue 23782, 1 April 1939, Page 8

MORE LIBERAL FINANCE

BROADCAST TALK BY MR R. G. CASEY VIEWS UNDERGOING CHANGE? A broadcast' talk delivered by the Federal Treasurer (Mr R. G. Casey) in support of the £8,500,000 works loan suggests that his financial views are undergoing a change, states the Sydney correspondent of The’ Christchurch Star-Sun. Up till now Mr Casey has stood with the other Federal Ministers and the Commonwealth Bank in resisting the claims of the states, headed by the New South Wales Premier, Mr B. S. B. Stevens, for more liberal finance with which to develop Australia’s latent resources. The advocates of more liberal finance have always argued that, in view of European conditions today, to increase the population of Australia by pushing ahead with the development of its resources is second in importance only to active defence measures.

EXPLOITING RESOURCES This argument was referred to by Mr Casey, who said:— “As well as building armaments, we must show the world that we are determined to exploit Australia’s resources to the full. Other countries are only too willing to believe that we are doing nothing. They point out that there is only one Australian to every 100 people in the world, but that we hold one square mile for every 20 of the earth’s surface. From this they deduce that we have 15 times our proportionate share of the earth. “They overlook the fact that half of Australia will never support more people than it does now, because of lack of rain and water. We must, however, make the most of our country if we want to keep it for our children.” Mr Casey added that for this purpose more finance was required than could be raised by a reasonable amount of taxation and that, as long as loans for such purposes were wisely expended, there pppeared to be no objection to them. The State Treasurer (Mr Mair), m an article in the organ of the the U.A.P. in New South Wales, also urges the importance of developing Australia’s resources rapidly, and suggests a threeyear plan concurrent with the threeyear emergency defence programme. He proposes that expenditure be financed by heavier taxation on incomes of more than £2500 a year and by short-term Treasury bills. “If war came,” he argues, “there would be no suggestion that we were unable to finance anything required. It is merely stupid to say that finance cannot be provided now, but that it will be available the moment it is too late to use it effectively.”