“TIGHTENING OF BELT”

Timaru Herald, Volume CXLVII, Issue 21508, 22 November 1939, Page 7

“TIGHTENING OF BELT”

Australians Warned To Prepare Shipping May Affect Markets United Press Association—By Electric Tel egrapb —Copyright (Received November 21, 9.20 p.m.) CANBERRA, November 21. Acting-Treasurer Mr P. C. Spender issued a warning against over estimating the effects that the increasing export prices will have on Australia's overseas funds. He also suggerred that the community should prepare for “some tightening of the belt.” He pointed out that the export price level was 10 to 15 per cent better than last year, but about 5 per cent below 193738, when Australia had a serious adverse balance of payments. Australia's volume of exports would be large, but it was doubtful, he added, how much could be marketed owing to shipping difficulties. Moreover, under war conditions, the community could not expect the continuation of private investment from overseas on a scale hitherto enjoyed. “In these circumstances and without considering the present war expenditure abroad, there is a distinct possibility of a favourable balance for the year of perhaps £15.000,000 and also a distinct possibility of its being considerably lower.

“Our commitments for the air training scheme are at present unknown and are also likely to affect our Lonlon funds seriously, apart from other adverse possibilities.”