HONESTY WINS.

Taranaki Daily News, 18 December 1930, Page 8

HONESTY WINS.

The success of the Australian conversion loan of £28,000.000 is welcome news in the Dominion, as well as cheering to the Common wealth. It shows first of all that despite the frothy talk of demogogues the Australian nation still beli’cves that there is only one way to treat a just liability when it falls due, and that is to pay it. Tlie success.of the loan indicates also that the resources of the Commonwealth are by no means exhausted, and that so long as the investing public is satisfied with public credit it will be prepared to buy Australian Government stocks. The immediate difficulty confronting the Federal Treasury is now overcome, but that is not to- say all the financial troubles of the Commonwealth arc at an end. The most that can be said is that an excellent commencement has been made, with the work of economic rehabilitation and that had any other result been achieved Australia’s plight would have been almost hopeless. There is a long road to traverse before prosperity can be reached again, but at least no political short cut has been attempted for the first stage, and this in itsfelf is a' happy augury for the rest of the'journoy. ■ New Zealand’s intorest in the matter is more than academic. For good or ill financial conditions" in - Australia have marked effect here and there is" no doubt some ;of the extra.exchange-burden the Dominion is now being asked to bear is a reflex of conditions in the Commonwealth. If the State Governments there will follow the extelleiit lead given by the .Federal Ministry, almost in spite of the majority of its supporters,- recovery will be all the sooner. ■ After all, citizens of the States" are citizens also of the Commonwealth, and having done the* right "thing fin one capacity there seems no reason why they should not be equally wise in policy affecting more domestic concerns.