AUSTRALIAN FINANCE.

Star (Christchurch), Issue 17351, 16 May 1924, Page 11

AUSTRALIAN FINANCE.

GREAT GROWTH OF DEBT. By Telegraph—Press Association—Copyrighi Australian and N.Z. Cable Association. (Received May 16, 12.16 p.m ) MELBOURNE, May 16. In the House ot Representatives 31; Flatten, speaking of Australia’s economic position, said the puU lie debt since 1870 on the average had doubled every ten years. In 1860 the public debt was twelve millions. Tt was now 950 millions. It was the duty of those responsible for the financial affairs to take a tighter grip of the reins. The increase of population, probably, would relieve the. load of debt, but while the debt increase since 1870 had been 3000 per cent, the population increase had only been 235 per cent He believed the national wealth of Australia from all sources totalled appioximately three thousand niTTltons. A comforting feature was the growtheir own borders instead of going abroad. Of the Commonwealth debt, more than two-thirds had been oh - tained in Australia, ami the rest in London. Of the Mates’ debts mote j

than two-fittlis were obtained here. Since 1015 GO per cent of the loans had been raised in the country, and the remainder outside. The rate of ’ interest paid in the past decade had increased from £3 12s 6d per cent t«> ~5 per cent for the Commonwealth, and irom £3 12s to £1 7s 6d for the State loans.

During the life of the present Parliament loans totalling two hundred millions were falling clue. The time was approaching when the interest charges, compared with ten years ago, would have increased 75 per cent. So serious attempt had hitherto been made to face the position. New South Wales, with a gross indebtedness or 180 millions, had a sinking fund of four hundred thousand. The Commonwealth had done little better, providing a sinking fund of $ per cent. For Australia to keep out of further debt her exports should exceed her imports to the. extent of the intereston the debts abroad, in addition to amounts spent by \ustralians abroad, together with other services and iemittanccs.